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Question 3: Rose and Mary have been running a flower shop called Busy Bee Florist in the locality since 2019. Rose invested 70% of the capital and Mary contributed the rest. They work together at the shop and share the profits and losses proportionately. Sonny agrees to lend $10,000 to Busy Bee Florist but he requires some interest on the loan. A deal is struck which results in Sonny receiving a one-eighth share of the net profit in consideration for making a loan to the firm. Sonny made it clear that he is not interested in or never be involved in the actual operation of the business. Violet also joins the Busy Bee Florist, but she is unable to make any financial contribution to the business. She however to promised to work fulltime at the shop and has agreed to accept 10% share of the profit (or loss), if any. Rose and Mary inform the Friendly Bank that Violet and Sonny are now partners in the Busy-Bee Florist Shop. Business continues to decline and Rose and Mary secretly decide to take an extended holiday in the Congo Basin. Both Violet and Sonny were unaware of the large debt owing to Friendly Bank and believed the purpose of their loan was to expand the business of the Busy Bee Florist Shop. Friendly Bank seeks to recover debts owing by the Busy Bee Florist Shop from Violet and Sonny. Required: Advise Violet and Sonny of their potential liability to Friendly Bank in relation to the Busy Bee Florist Shop. (a) Can Violet be considered as a partner? Explain (5 Marks) (b) Can Sonny be considered as a partner? Explain (5 Marks) (c) Did Violet and Sonny allow themselves to be held out as partners? Explain