Tracy Is an Employee of Zebra Toy Company,and Both Parties

question 33

Essay

Tracy is an employee of Zebra Toy Company,and both parties are free to terminate her employment at will.One afternoon she has lunch with a friend who works in marketing for her company's biggest competitor,Tiger Toys.Over a period of about three months,Tiger Toy representatives convince Tracy to work with them.Tiger offers a larger base salary with bigger commissions than she had with Zebra.When Tracy leaves Zebra,it sues Tiger Toys claiming it intentionally interfered with a contractual relationship.Will Zebra Toy Company be successful?

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Definitions:

Financial Capital Maintenance

An accounting concept that income is only recognized after the amount of the investor's capital has been maintained, or the financial position is at least as good at the end of the period as at the beginning.

Net Assets

The total assets of an entity minus its total liabilities, indicating the entity’s net worth or equity.

Common Stock

Equity securities that represent ownership interests in a corporation, providing voting rights and entitling the holder to a share of the company's success through dividends and/or capital appreciation.

Expense Recognition

An accounting principle that dictates the conditions under which expenses are recognized and reported in financial statements.