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Harry recently graduated from the Monash Business School. He wants to set up an accounting and consultancy business with his friends from university, William and Charles, as he realised the venture can be very profitable. However, they lack the funds to start the business. Luckily, his friend, Elizabeth, who is a wealthy accountant, agrees to provide them with $100,000 to help get their business established. They are all very grateful and agree that they will repay Elizabeth by sharing the profits with her until the $100,000 is repaid in full. Elizabeth tells them: 'I will not interfere! I just want to make sure that you get a great start. Just think of this as a loan.' Afterwards, William finds the perfect building to set up theiroffices, while Charles employs the staff and purchases the office supplies. Harry markets the business, called "Merry Managers, in social media and business magazines Harry William and Charles then draw up a contract, Afterwards, William finds the perfect building to set up their offices, while Charles employs the staff and purchases the office supplies. Harry markets the business, called "Merry Managers, in social media and business magazines. Harry, William and Charles then draw up a contract, which includes the following terms: 1. All three agree the annual profits will be shared equally, but Elizabeth will receive 10% to pay off the loan. 2. All three must actively help in the management of the business. 3. All business purchases over $1,000 must be approved by Harry, William and Charles Is 'Merry Managers' a partnership? And if so, who are the partners? (7 marks)

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