10.3 You want to open a retail business in a local mall. You have been offered two different rental arrangements under a five-year lease agreement. You can pay the landlord 10% of your sales revenue, or you can pay a fixed amount of $5,000 per month. (8 marks)

a. Describe the circumstances under which each of these arrangements would be your preferred choice, if you had to choose at the beginning of the lease. (4 marks)

b. What additional terms might you add to the lease contract to reduce your risk? (4 marks)