User Account

All Pages

Discuss the ethical implications of this reclassification

Assignment Help Accounting Basics
Reference no: EM132486961

Question - Scenario: You are on the management team of Crystal Clear Electronics (CCE) Inc., a company that specializes in high-quality home theater systems. In addition to selling these systems, CCE provides custom installation on all purchases and is known for the professionalism of its installation staff. This reputation is due to the rigorous policies its home installation staff must follow. All employees are required to attend bi-monthly training sessions, wear CCE uniforms, observe the installation dates and times agreed on by CCE and the customer, and follow any instructions given by CCE as to how to perform the installation.

Faced with shrinking margins and cash flow problems, CCE is looking to cut costs and increase cash flows. You realize that by reclassifying the installation staff as independent contractors, CCE will be able to accomplish both objectives. Because the installation staff would be independent contractors, the company would not have to pay payroll taxes, social security, and Medicare expenses. The reduction in these costs and the corresponding increase in cash flow would certainly help the company's liquidity. Furthermore, such a change would not affect the quality of the service provided and would be virtually invisible to customers.

Discuss the ethical implications of this reclassification.

Reference no: EM132486961

Questions Cloud

What is the weakness in a blockade strategy : Discuss What is the weakness in a blockade strategy? Explain why a border policy that relies solely on enforcement is bound to fail.
Removal of part of the thyroid be a potential treatment : (Osteoporosis is a common disease in the elderly. Bones become less dense and more likely to break. Treatment of osteoporosis frequently falls under endocrinolo
Prepare the entry to record bad debt expense : Assume that 10% of accounts receivable will prove to be uncollectible. Prepare the entry to record bad debt expense
What specifically happens in the light-independent reactions : What specifically happens in the light-independent reactions? What are the reactants, products, and where does this occur?
Discuss the ethical implications of this reclassification : You are on the management team of Crystal Clear Electronics (CCE) Inc., a company. Discuss the ethical implications of this reclassification
Explain the light-dependent reactions of photosynthesis : Briefly explain the light-dependent reactions of photosynthesis: where does this take place, what are the reactants, what is produced and what is waters role?
What form of network diagram : What benefits of bottom-up budgeting will you highlight to senior management? How might you respond to upper management's concerns that bottom-up budgets
Basic security considerations : briefly explain what the owner of your business must consider in regard to security and privacy if they choose to adopt your recommendations.
Describe all interactions such as hydrogen bonding : Please be detailed in your work, write out structures neatly. Describe all interactions such as hydrogen bonding, coupling, pi stacking interactions if applicab

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd