Assume all the following facts can be proven. Dave and his sister Christa made unusual

kites. They both created the designs; Dave made the patterns. Friends had always wanted

to buy their kites. After Christa completed a college marketing program, she began to talk

to Dave about going into business selling kites. Ed, a friend of Christa's wanted to be

involved. He said he could buy the supplies and do other odd chores. They decided to try

to make a go of it and to share the profits as follows: Dave 35%, Christa 35%, and Ed

30%. Things went well for 7 months. They even hired George to deliver kites to the

increased number of stores buying them. Christa and Ed became romantically involved.

This was followed by a heated dispute. Ed disappeared with $1,300 collected from

customers and $600 worth of supplies, which he had bought using the business credit

account on behalf of the business from their regular supplier. At about the same time,

George negligently broke a customer's $200 lamp when he was delivering a kite.

a. What kind of business organization is this? Prove it. (4 marks) b. For which of the following can Dave be held fully liable? Explain. (3 marks)

i. The broken lamp ii. The $600 for the supplies

iii. Business debts