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.

b. For which of the following can Dave be held fully liable? Explain.

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

iii. Business debts