Zack was a partner in a management consulting firm that specialized in assisting small businesses in the area of financial planning. The firm did not perform income tax savings. However, since Zack had personal expertise in tax accounting, he frequently assisted friends, as well as some firm clients, in preparing their income tax returns. Usually he borrowed the firm's adding machine and other office supplied to perform this work from his home unbeknownst to his partners. Zack may be required to retire from the partnership for breach of warranty of authority account to the other partners for any money received from his income tax service assign his share in the partnership to another to take his place in the partnership O All of the responses are possible None of the responses are possible.

Zack was a partner in a management consulting firm that specialized in assisting small businesses in the area of financial planning. The firm did not perform income tax savings. However, since Zack had personal expertise in tax accounting, he frequently assisted friends, as well as some firm clients, in preparing their income tax returns. Usually he borrowed the firm's adding machine and other office supplied to perform this work from his home unbeknownst to his partners. Zack may be required to retire from the partnership for breach of warranty of authority account to the other partners for any money received from his income tax service assign his share in the partnership to another to take his place in the partnership O All of the responses are possible None of the responses are possible.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Similar questions

Along with many other companies, Sanchez Printersobserves the Friday after Thanksgiving as a paid holiday. The company requires each employee to makeup Friday’s lost hours in the following workweek byworking extra hours without pay. Is Sanchez Printers proceeding legally by requiring its employees towork extra hours without compensation to make upfor the hours lost on the Friday holiday? Explain.
Amy is caring for her aging mother, Milly. Milly has a number of health issues. She has given Amy a power of attorney so that Amy can help pay her bills and handle her business affairs. Amy is concerned that Milly will eventually use up all her assets, including losing her house, to provide for her health care needs. To protect against that eventuality, Amy intends to use her power of attorney to put Milly’s house into Amy’s name. True or False: Amy’s transfer of the house is a breach of her fiduciary duty as Milly’s agent.
Karen, a senior manager in Consult-Biz Inc., encourages Charles, her junior manager, to bill Consult-Biz's clients for his commute time, and identify it as "meet and confer with senior manager." Karen explains that she will then adjust her own billing sheet to match this entry.Karen tells Charles that all other Consult-Biz junior and senior managers engage in this practice, and that clients have never questioned such entries. Charles is not sure whether this would be an ethical action. What should Charles do?
Accounting Ethics Case: Andy Frame and his supervisor are sent on an out-of-town assignment by their employer. At the supervisor’s suggestion, they stay at the Spartan Inn, across the street from the Luxury Inn. After three days of work, they settle their lodging bills and leave. On the return trip, the supervisor gives Andy what appears to be a copy of a receipt from the Luxury Inn for three nights of lodging. Actually, the supervisor indicates that he prepared the Luxury Inn receipt on his office computer and plans to complete his expense reimbursement request using the higher lodging costs from the Luxury Inn.Required: What are the ethical considerations that Andy faces when he prepares his expense reimbursement request and how often do you think this happens in the real world? Your post should be at least a couple of paragraphs.
Skip and Jack are the shareholders of the Blue Fish Event Corporation. Skip and Jack regularly put on classy events on or near the beach, so they have a special insurance policy to protect their assets. Business has been slow as fewer large beach weddings are taking place, so Skip and Jack use a large fan to blow down and damage most of their décor assets, some of which were personal assets of Skip and Jack, to collect the insurance benefits. (a) Assuming their acts are proven, will a court allow Skip and Jack to recover the insurance money? (b) Is this a situation where the corporate veil may be pierced? Why or why not? (c) What would it mean for Skip and Jack if the corporate veil is pierced in this situation?
ScenarioAntonio Mbaza is employed by Klincor. For the duration of his employment, both him and hisemployer contributed the legislated UIF amount on a monthly basis. After a particularly frustratingday at work, Antonio hands in his resignation to his employer and his employer accepts theresignation. A week later, Antonio contacts his former employer requesting that the relevantdocumentation be completed and released so that he can claim his UIF benefits, the employerdenies the request, indicating that Antonio does not qualify to apply for UIF.With reference to the scenario provided, comment on the former employer’s statement thatAntonio does not qualify for UIF, with consideration to the following: The validity of Antonio’s UIF claim. The categories for which UIF can be claimed. The duration for which Antonio could have expected to receive UIF payments.
Ma3. Explain in brief. Sally Henderson is an employee of Good Eats Restaurant. Sally's contract with Good Eats Restaurant states: "Sally Henderson shall ensure the bathrooms and dining room area are reasonably clean during operating hours." Sally's good friend James is also employed by Good Eats Restaurant as a parking attendant, a person who parks customers’ cars. On a very busy night at Good Eats Restaurant, without the authorization of Good Eats Restaurant, Sally decided to help her friend James park cars. Sally injures a customer due to Sally's negligent driving while parking cars. The injured customer sues Sally and Good Eats Restaurant. Is it likely that Good Eats Restaurant will be determined to be liable to the injured customer. BRIEFLY EXPLAIN.
The finance director, Montse Mirabelle, has informed you that a significant fraud took place during the year in the payroll department. A number of fictitious employees were set up on the payroll and wages were paid into one bank account. This bank account belonged to two supervisors, who were married, and were employed by Heraklion Co. One had sole responsibility for setting up new joiners in the payroll system and the other processed and authorised bank transfer requests for wages and supplier payments. These employees no longer work for the company and Montse has asked the audit firm for recommendations on how to improve controls in this area to prevent this type of fraud occurring again. Heraklion Co operates a Human Resources department. Required:(c) In relation to the payroll fraud, identify and explain THREE controls Heraklion Co should implement to reduce the risk of this type of fraud occurring again and, for each control, describe how it would mitigate the risk.
This question relates to the form of employment contract between a real estate agent and her real estate agency (like Coldwell-Banker or Century 21). The agency provides the agent with a desk, secretarial and paralegal services, and its reputation for honest dealing. Susan is a real estate agent. Since she is a single mother, she is concerned with the uncertainty associated with her volume of sales. The brokerage contract between the seller (of a home that has been put on the market for sale) and the real estate agent specifies a commission of 6% (payable upon sale). The listing agency presents Susan with two options. She can split her commission earnings 50-50 with the agency or pay an annual franchise fee of $60,000 to the agency and receive the entire commission. The question has two parts. In part A, there is no moral hazard. In part B, there is moral hazard. A.Her expected sales are $3,000,000 with a probability of 0.5 and $1,333,333 with a probability of 0.5. Her utility…
Packed Corporation owns 60 percent of Snowball Enterprises’ stock. On January 1, 20X1, Packed sold $1.18 million par value, 6 percent (paid semiannually), 20-year, first mortgage bonds to Kling Corporation at 97. On January 1, 20X8, Snowball purchased $354,000 par value of the Packed bonds directly from Kling for $351,980. Required: Prepare the consolidation entry needed at December 31, 20X8, to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar
Lionel is an unmarried law student at State University Law School, a qualified educational institution. This year Lionel borrowed $35,500 from County Bank and paid interest of $2,130. Lionel used the loan proceeds to pay his law school tuition. Calculate the amounts Lionel can deduct for interest on higher-education loans under the following circumstances: Note: Leave no answer blank. Enter zero if applicable. b. Lionel's AGI before deducting interest on higher-education loans is $79,000.
White booked a flight for a business trip with his company’s travel agent. He filled out two expense reports for this trip,and on each report, he requested reimbursement for the cost of the ticket. On one report,he attached his airline stub as support for the expense. On the other report, he attached the travel agency’s invoice as support.What kind of scheme was White attempting? a. A false billing scheme b. A mischaracterized expense scheme c. An overstated expense scheme d. A multiple reimbursement scheme