You own and operate a digital marketing firm called Digimark.You specialize in advertising on Google and social media platforms. You are not a branding agency - you focus on the optimization of online advertising.Digimark is not incorporated, and you have two employees and two independent contractors.

Since you started the business five years ago, it has done very well. Your ad purchasing strategies are effective and you receive many referrals from clients. Your skills lie in the data analytics side of the business and you do not really enjoy management duties.

Three years ago, you brought on Chloe to help manage the business.You pay Chloe $3500 per month salary. She also receives a bonus based on the profits of the business. She gets 1% bonus of profit if the margin is under 20% and 3% of profit if the margin is over 20%.Her title is "Operations Manager".

Chloe is responsible for the following:

• Accounting functions, including accounts payable, accounts receivable, tax filing and remittances.
• All human resources, including the hiring of employees and contractors, performance review, payroll and workflow management.
• Vendor management, including maintaining the necessary accounts and credentials with Google and other organizations.

You continue to be responsible for business development even though it's not your strength. Chloe works with you on developing and implementing business strategies for the organization.

Using the IRAC (Issue, Rule, Application and Conclusion) method of analysis, are you and Chloe carrying on business in a partnership? (10 marks)