James Employs Several Workers in His Window Washing Company

question 41

True/False

James employs several workers in his window washing company.One of these persons is Robert.James does not trust Robert.He believes Robert is disobedient and incompetent.He says Robert is trouble waiting to happen.James dismisses Robert because of this concern.He does not have any concrete evidence regarding his fears.A few days after his dismissal,Robert commences an action for wrongful dismissal.Just before James files his defence to the claim,he receives new information,which supports and confirm his fears about Robert.On the basis of this new information,he knows that his termination was not wrongful.James cannot use this new information to justify conduct that was carried out prior to the finding of the new information.

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Definitions:

Renovation Cost

Expenses incurred in updating or improving a fixed asset, such as buildings or equipment, to increase its value or extend its useful life.

Working Capital

The contrast between a firm's current holdings and its due obligations, highlighting the accessible funds for running its business activities.

Straight-Line Depreciation

A tactic for parceling the cost of a tangible property throughout its lifespan in steady yearly payments.

Income Taxes

Taxes imposed by a government on the financial income generated by all entities within their jurisdiction.