Andrew Owns 100% of the Stock of Crow's Farm Inc

question 38

Multiple Choice

Andrew owns 100% of the stock of Crow's Farm Inc., an S corporation, that raises cattle and corn. The farm's annual gross receipts have never exceeded $23 million and the farm is not considered a tax shelter.

• A) The farm must report its sales and cost of goods sold by the accrual method because inventories are material to the business.
• B) The income from the farm may be reported by the cash method.
• C) The income from the sales of cattle may be reported by the cash method, but the income from the sales of corn must be reported by the accrual method.
• D) The income from the sales of corn may be reported by the cash method, but the income from cattle sales must be reported by the accrual method.
• E) None of the above.

Realize the role of industry associations in franchising.

Discern the impact of franchises on standardization and market reach.

Understand the concept of economizing scale in franchising and its sources.

Recognize the ethical and legal standards governing franchised businesses.

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Definitions:

Kurt Lewin's Change Model

A framework for managing change in organizations that involves three stages: unfreezing, changing, and refreezing.

Moving

The second step in Lewin’s change model, in which new attitudes, values, and behaviors are substituted for old ones.

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Job Redesign

The process of restructuring a job by altering its components, duties, or expectations to improve productivity and satisfaction.