Fact Pattern 37-1A (Questions A3-A4 Apply)

question 4

Multiple Choice

Fact Pattern 37-1A (Questions A3-A4 apply)
Desi starts up eSites,an Internet service,and leases office space in a building owned by Fred.The lease requires Desi to pay Fred a base rental of $1,250,plus 10 percent of eSites' profits,each month.The term is two years.Desi hires Gwen to work at eSites' tech support desk at an hourly wage of $12.50,plus a commis?sion of 10 percent of the prof?its.The term is also two years.
-Refer to Fact Pattern 37-1A.Desi and Gwen are

• A)not partners,because Gwen does not have an ownership interest or manage?ment rights in eSites.
• B)not partners,because the pay includes an hourly wage.
• C)not partners,because the pay includes only 10 percent of the profits.
• D)partners in a partnership for two years.

Recognize the legal consequences of breaching implied employment contracts.

Identify the protections provided to whistleblowers under the law.

Understand the requisites for a union election and the collective bargaining process.

Know the laws related to the monitoring and recording of employee communications.

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Definitions:

Accounts Receivable Turnover

A financial metric indicating how efficiently a company collects on the credit it extends to customers by measuring the number of times average accounts receivable are collected during a period.

Net Credit Sales

Net credit sales is the total revenue generated from sales made on credit, after subtracting any returns or allowances.

Average Accounts Receivable

The average amount of money owed to a company by its customers for goods or services sold on credit over a specific period of time.

Earnings per Share

A financial metric that indicates how much profit a company makes for each share of its stock, calculated as net income divided by the number of outstanding shares.