Fact Pattern 37-1ADesi starts up eSites, an Internet service, and leases office space in a building owned by Fred. The lease requires Desi to pay Fred a base rental of $1,250, plus 10 percent of eSites' profits, each month. The term is two years. Desi hires Gwen to work at eSites' tech support desk at an hourly wage of $12.50, plus a commission of 10 percent of the profits. The term is also two years.Refer to Fact Pattern 37-1A. Desi and Fred are
A. not partners, because Fred does not have an ownership interest or management rights in eSites.
B. not partners, because the lease includes a "base rental."
C. not partners, because the rent includes only 10 percent of the profits.
D. partners in a partnership for two years.
Answer: A
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