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koban [17]
3 years ago
13

Tom and Mark tell Susan that they are considering expanding store hours and advertising. They wish to concentrate their efforts

on management and growth. They wish to hire several workers, but they are uncertain whether or not these workers would be designated as employees or independent contractors. Susan asks Tom and Mark to describe the nature of each position, the hours worked, and the control they exercise over each worker. Jack Walker, Grant Worthington, and Phil Costello are first-rate salespeople who have extensive experience in selling men's clothing. They would each work 40 hours per week and be paid a base salary plus commission. The salesmen would be prohibited from working elsewhere. They would be required to wear suits, and their work schedules would be set by L&S. Paid vacation and sick leave would be given as well. Jack, Grant, and Phil would have no discretion in deciding whether to attend to a customer's needs, and they would have no authority to hire assistants. Nancy Cooke is being employed as an administrative assistant. Her duties will include bookkeeping, ordering, and typing, as well as telephone reception. She will work from 10:00 a.m. to 6:00 p.m., Monday through Friday. Martha Winslow, a seamstress by trade, is being hired to perform the necessary alterations on the clothing. She would be available for appointments on Tuesdays and Thursdays from 6:00 p.m. to 8:00 p.m. and on Saturday afternoons from 2:00 p.m. to 4:00 p.m. Martha would set her own hours in addition to these, depending on the workload. Martha has set a fee schedule covering the various types of alterations performed on a per item basis. Stephanie Russo is a Web page design specialist with a degree in graphic arts. She is being trained to create a Web page for L&S. After that, she will act as a consultant for purposes of Web advertising. Lucy Johnson is being hired to clean the store after hours. She will set her own schedule, and she estimates working 1 to 2 hours per night. Stephanie is being paid on a one-time fee basis for the Web design work and then will be retained on an hourly basis as a consultant. Lucy is being paid a flat fee per night, regardless of the length of time it takes for her to clean the store. Which of these people are employees, and which are independent contractors?
Business
1 answer:
emmainna [20.7K]3 years ago
7 0

Answer:

Employees and Independent Contractors

a) The Differences are:

1. Nature of each position:  The employee is a worker who is engaged in a contract of service with an employer.  She earns a periodic salary based on a fixed time per week, e.g. 40 hours per week, Monday to Friday.  On the other hand, a contractor engages in a contract for service.  She is engaged for a fee to carry out a specified assignment or project.  The independent contractor is self-employed.  She can work for many other organizations and for any number of hours.

Hours worked:  The employee works some fixed hours per day and per week.  An independent contractor does not have any fixed hours of work.  She can choose to work more than 40 hours per week.

Control by Employer:  For the employee, the employer dictates most of the details about the work.  She can be given any work by the employer.  She enjoys sick leave and other emoluments.  She lacks discretion on which tasks to work on.  She does not have "authority to hire assistants."  The independent contractor does her work to suit her convenience, but ensures that the customer is satisfied with her work to enable contract renewal.

b) Examples of Employees and Independent Contractors from the case study:

i) Employees:

1. Jack Walker, Grant Worthington, and Phil Costello, salespeople

2. Cooke, an administrative assistant

ii) Independent Contractors:

1. Martha Winslow, a seamstress by trade

2. Stephanie Russo, Web Advertising Consultant

3. Luck Johnson, Cleaner

Explanation:

The general rule for differentiating the two types of workers is that an independent contractor directs the result of the work and not what will be done and how it will be done.  Her earnings (fees) are subject to Self-Employment Tax.  The employee does not control the result of her work and the tasks, but can control how it will be done.  Her earnings are subject to Paye Tax.

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Tiger Trade has the following cash transactions for the period.
Valentin [98]

Answer:

1. Ending balance of cash is $31400

Explanation:

<u>1.</u>

Balance of cash at the beginning of the period is $4,300

+Cash received from sale of products to customers $ 36,500  

+Cash received from the bank for long-term loan 41,500

-Cash paid to purchase factory equipment (46,500 )  

-Cash paid to merchandise suppliers (11,300 )  

+Cash received from the sale of an unused warehouse 12,300  

-Cash paid to workers (23,300 )  

-Cash paid for advertisement (3,300 )  

+Cash received for sale of services to customers 26,500  

-Cash paid for dividends to stockholders (5,300 )  

Balance of cash at the beginning of the period is $31,400

<u>2.</u>

Cash Flow Statement

Cash flow from Operating Activities

Cash received from sale of products to customers $ 36,500  

Cash received for sale of services to customers 26,500  

Cash paid to merchandise suppliers (11,300 )

Cash paid to workers (23,300 )

<u>Cash paid for advertisement (3,300 )</u>

Total Cash Inflow / outflow from Operating Activity                               25,100

Cash flow from Investing Activities

Cash paid to purchase factory equipment (46,500 )

Cash received from the sale of an unused warehouse 12,300

<u>Cash paid for dividends to stockholders (5,300 )</u>

Total Cash Inflow / outflow from Investing Activity                             (39,500 )

Cash flow from Financing Activities

<u>Cash received from the bank for long-term loan 41,500</u>

Total Cash Inflow / outflow from Financing Activity                                41,500

Net cash Inflow / Outflow                                                                         27,100

Balance of cash at the beginning of the period is                                   <u>4,300</u>

Balance of cash at the beginning of the period is                                 <u>31,400</u>

8 0
3 years ago
How supply and demand work together to reach the equilibrium price in the marketplace? Please give at least a paragraph. Thank y
grandymaker [24]

Answer

Before I answer this question, you must note that the equilibrium price is created by both the amount supplied of a certain product as well as how much "customers" there are (or the amount that is bought in all).  This however, is usually not taking account any potential competitors.

For example, let say that the price in creating the product (or buying) is $15. This means that right now, the company loses $15 for one of the products. To make a profit, the selling price must be >$15. However, (unless they are a monopoly, such as, for example, electrical companies) there are competitors that they must fight with to get customers. Of course, there are other things that can affect the price, depending on the demographic and area.

So how does supply and demand affect the equilibrium price? The limits of the supply & the amount of demand would help determine the price by the amount of people buying and the supply of the product.

~

6 0
3 years ago
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Which of the following is a suggested policy on executive smartphone use?
azamat

Answer:

B. all of the above

Explanation:

Suggested policy on executive smartphone use:

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Answer:

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b. How much money will she have to accumulate in her company’s 401(k) plan over the next 40 years in order to reach her retirement income goal?

she needs to accumulate $875,000 - $217,250 = $657,750 during the next 40 years

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