In 2006, Sally opened a restaurant called Traders' Place in rented premises in Ottawa's booming financial

district. She operated the restaurant as a sole proprietorship. By 2012, the business had grown and she

determined that she needed experienced help to run the business. In November 2012, Sally approached Marty

to see if he would become the manager of the Traders' Place business. He agreed and the following were the

terms of his agreement with Sally.

Each month, Marty was paid $1000 plus 1 percent of the total restaurant revenues for that month. Total monthly

revenues, on average, were about $100 000. At the end of each complete calendar year that Marty worked, if the

restaurant had made a profit for the year equal to or exceeding $200 000, Marty was entitled to receive 10

percent of the profits.

Marty was responsible for managing the restaurant, including

opening and closing the restaurant,

hiring, firing and scheduling staff, and

ordering food and paying suppliers.

Sally was responsible for the financial side of the business, including budgeting, accounting and payroll, as well

as marketing. In 2013, Traders' Place profits exceeded $200 000 and Marty was paid 10 percent of the profits in

accordance with the agreement. What type of business organization are Marty and Sally using to conduct their

business?

Give issues, rules, analysis and conclusion