The royal motor company manufactures automobiles. nonmanagement employees of the company can buy a new automobile for royal’s cost plus 2%. the automobiles are sold to dealers at cost plus 20%. generally, management employees of local dealer, inc., are allowed to buy a new automobile from the company at the dealer’s cost. which of the following statements is correct? a. the nonmanagement employees who buy automobiles at a discount are not required to recognize income from the purchase. b. none of the employees who take advantage of the fringe benefits described above are required to recognize income. c. employees of royal are required to recognize as gross income 18% (20% – 2%) of the cost of the automobile purchased. d. all of these. e. none of these.

How is the division of labor accomplished?

Arriving and delivering a load of company executives for a business meeting at a destination far from home base requiring an overnight stay, a company’s pilot requested approval from the company finance office to pay to either have the company’s jet brought into the fbo's hangar overnight to protect it from a forecast snowfall or to have it de-iced by the fbo the following morning well-before scheduled departure. the company was under considerable financial pressure at the time, and the pilot’s requests were denied because of the cost. so, early the following morning, the pilot was up on the wing of the jet sweeping off an accumulation of snow and ice with a borrowed push broom in preparation for the scheduled departure with the executives, but slipped and fell to the ground, suffering a broken neck. the business was organized as a limited partnership, owned by 3 limited partners and one general partner. as a cost-saving measure, the company had dropped its workers’ compensation insurance before the accident. analyze the potential liability for the pilot’s injuries of each of the following, showing your reasoning clearly: the company the general partner the limited partners analyze how the outcome would have been different, if the business had been organized as a corporation and observed all of the formalities to legitimize its corporate status. analyze how the outcome would have been different, if the pilot had been covered by workers’ compensation insurance.

If the findings and the results are not presented properly, the research completed was a waste of time and money. true false