Schultz v. Capital International Security, Inc. 460 F.3d 595 (4th Cir. 2006) Facts: The plaintiff-agents provided security services for Schultz and his family at his Virginia residence in twelve-hour shifts. The agents were paid a daily rate for each shift; they received no extra pay for overtime. The agents had a command post at the residence, from which they observed security camera monitors, answered the telephone, and kept a daily log of all arrivals and departures. They also made hourly walks of the property, ensured that members of his family were safe when departing and arriving, sorted mail, and performed various tasks upon request of his family. In addition to their security duties, the agents were responsible for having the household’s vehicles washed and fueled, making wake-up calls, moving furniture, and doing research on the Internet. Schultz's long-time driver and travel agent, Sammy Hebri, formed a company called Capital International Security, Inc. (CIS). Hebri started CIS for the purpose of becoming Schultz's security contractor. Hebri sent a memo (dated July 24, 2002) to the agents directing them to obtain their own private security business licenses from the VDCJS and individual liability insurance so they could be classified as independent contractors. Issue: The issue is whether the bodyguards were considered to be employees or independent contractors for the purpose of the Fair Labor Standards Act. Action: You must respond to all questions below. You must use at least three sources from the class materials and do independent research. Do not combine the five discussion questions and please use the outline below for your paper. Use of the outline will help you organize your research and comments and ensure you do not miss any questions that must be addressed. Your responses to each question must be in narrative format not bullets. Use the headings below to organize your paper.
Question 1A - a. Summarize the relevant facts of the case. What is your opinion on the outcome of this case?
Question 1c - Classification Test: In the above case, what kind of classification test could have been used and what would be the result?

Answer:

Hence the answer is given as follows,

Explanation:

1A) In the given case, the agents who are the plaintiffs were working as security guards for Schultz and his family. There was miscellaneous work that they were required to conduct for the family. The agents were paid a daily wage and weren't paid overtime. Schultz’s driver opened a replacement company called CIS and asked the agents to get their own private security business licenses in order that they will get classified as independent contractors. So, the difficulty arises that whether the agents should be classified as employees or as independent contractors.

The agents were paid a daily wage and not a salary. Moreover, they weren't qualified for overtime pay. Employees usually get salaries and are eligible to urge over time by the overtime work. Hence the agents are independent contractors and can't be considered employees.

1C) In the given case, a hybrid classification test is often wont to check the status of whether the agents were employees or independent contractors. A hybrid classification test has characteristics of right to regulate test also as economic realities test. Schultz and his family weren't controlling the work of the agents. The agents had pre-determined work and that was conducting it in an independent manner. The agents also were paid on a day to day and didn't have a timekeeping requirement. Hence the agents can qualify as independent contractors and not employees as per the hybrid classification test.

_______________ skills, though developed through job training and work experience, are generally acquired during the course of your formal education.

a. Interpersonal
b. Technical
c. Conceptual
d. Communication

5.
Stay at least feet behind any fire apparatus vehicle displaying flashing warning
lights and sounding a siren.
a. 27
b. 99
c. 312
d. 500

You enter into a forward contract to buy a 10-year, zero coupon bond that will be issued in one year. The face value of the bond is $1000 and the one-year and 11-year spot interest rates are 5 and 7 percent respectively. What is the forward price of your contract

If you could invent something what would it be

7. During January 2005, an Italian invested in the Italian stock market and earned a return of 1.47%. During the same month, an American investor investing in the Italian stock market earned a return of –2.358%.

What percentage of authorized shares was issued by Coca-Cola at December 31, 2015, and by PepsiCo at December 26, 2015

The efficiency gains resulting from a just-in-time inventory management system will allow a firm to reduce its level of inventories permanently by $333,000. What is the most the firm should be willing to pay for installing the system

On December 31, 2016, Bart Inc. purchased a machine from Fell Corp. in exchange for a noninterest-bearing note requiring eight payments of $20,000. The first payment was made on December 31, 2016, and the remaining seven payments are due annually on each December 31, beginning in 2017. At the date of the transaction, the prevailing rate of interest for this type of note was 11%. Present value factors are as follows: Period Present value of ordinary annuity of 1 at 11% Present value of an annuity due of 1 at 11% 7 4.712 5.231 8 5.146 5.712 The initial value of the machine is

Health and Wealth Company is financed entirely by common stock that is priced to offer a 15 percent expected return. If the company repurchases 25 percent of the common stock and substitutes an equal value of debt yielding 6 percent, what is the expected return on the common stock after refinancing

Assuming that all entries have been posted, prepare correcting entries for each of the following errors.

a. The following entry was made to record the purchase of $774 in supplies on account:

Supplies 142 774
Cash 101 774

b. The following entry was made to record the payment of $475 in wages:

Rent Expense 521 475
Cash 101 475

c. The following entry was made to record a $396 payment to a supplier on account:

Supplies 142 196
Cash 101 196

Mr. J's Bagels invested in a new oven for $14,000. The oven reduced the amount of time for baking which increased production and sales for five years by the following amounts of cash inflows:
Year 1: $8,000
Year 2: $6,000
Year 3: $5,000
Year 4: $6,000
Year 5: $5,000
The payback period for the investment in the oven would be:
a: 5 years
b: 2.3 years
c: 2.0 years
d: 0.5 years

Ride N Style Inc. is a bus line with service to several major cities. It has several competitors that each offer service to one or two cities, and based on its current outlays, it cannot match or beat those competitors on price. Because of long-term contracts and an increase in the cost of gasoline, it is not possible to reduce expenditures at this time. Which of these strategies should Ride N Styles pursue instead?

a. Close the business until the cost of us decreases.
b. Pursue a diferented strategy.
c. Compete based on intergroup rivalry, not in group rivalry
d. Create a strateg group through mergers

Suppose a chair manufacturer finds that the marginal rate of technical substitution​ (MRTS) of capital for labor in her production process is substantially than the ratio of the wage rate for​ assembly-line labor​ (w) to the rental rate on machinery​ (r). How should she alter her use of labor and capital to minimize the cost of​ production? Holding output​ constant, the chair manufacturer should use ▼ less more labor and ▼ more less capital.

3) Monopolists set prices A) At the minimum of the long-run average total cost curve. B) Without constraints since there is no competition. C) On the marginal revenue curve. D) At the output where marginal revenue equals marginal cost.

The risk free rate currently have a return of 2.5% and the market risk premium is 5.77%. If a firm has a beta of 1.42, what is its cost of equity

Description Term or Phrase 1. An assessment of whether financial statements follow GAAP. 2. Amount a business earns in excess of all expenses and costs associated with its sales and revenues. 3. A group that sets accounting principles in the United States. 4. Accounting professionals who provide services to many clients. 5. Principles that determine whether an action is right or wrong.

Prepare the Statement of Retained Earnings from the Adjusted Trial Balance and Income Statement. Within each section of the statement,
SMART TOUCH LEARNING
Adjusted Trial Balance
December 31, 2016
Account Title
Debit Credit
Cash 19500
Accounts recievable 10800
Office Supplies 200
Prepaid Rent 13,000
Furniture 22,800
Accumulated Depreciation--Furniture 7800
Accounts Payable 2600
Salaries Payable 600
Interest Payable 300
Unearned Revenue 6,500
Notes Payable 9,100
Common Stock 12,700
Retained Earnings 13,000
Dividends 33,100
Service Revenue 59,100
Depreciation Expense-Furniture 2600
Interest Expense 300
Rent Expense 3900
Salaries Expense 4500
Supplies Expense 1000
Total 111,700 111,700
SMART TOUCH LEARNING
Income Statement
Month Ended December 31, 2016 Balance
Revenue
Service revenue 59100
ExpensesDepreciation Expense-Furniture 2600
Interest Expense 300
Rent Expense 3900
Salaries Expense 4500
Supplies Expense 1000
Total expense 12300
Net income 46800

A multidomestic corporate-level strategy has ____ need for global integration and ____ need for local market responsiveness. Group of answer choices

Suppose that the price of a rental car (Prc) is $50 while the price of a flight (Pfl) is $85. Also, suppose that the marginal utility of a rental car (MUrc) is 20 utils while the marginal utility of flying (MUfl) is 30 utils. What is the best advice for this consumer?

The Costa Rica Tourism Board proposed a 6 percent tax on airplane travel to pay for a public hospital. A New York University economist estimates that the tax would result in a 6 percent increase in the price of an airline ticket. If the elasticity of demand is 1.33, what is the expected change in quantity demanded

Davis Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Material costs 7,500 75% Conversion costs 4,999 45% A total of 5,400 units were started and 4,700 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Materials costs $112,900 Conversion costs $93,900 The ending inventory was 85% complete with respect to materials and 30% complete with respect to conversion costs. The cost per equivalent unit for materials for the month in the first processing department is closest to:__________.
a. $21.37
b. $19.47
c. $20.04
d. $20.76

If the dollar contribution margin per unit is increased by 8%, total fixed expenses is decreased by 18%, and all other factors remain the same, net operating income will:

The end-of-period spreadsheet (work sheet) for the current year for Jamal Company shows Balance Sheet columns with a debit total of $570,210 and a credit total of $506,590. This is before the amount for net income or net loss has been included. In preparing the income statement from the end-of-period spreadsheet, what is the amount of net income or net loss?

Situation 2: You are a Department Head* of Generation Z. You are going to arrange a session for your team.
How you communicate with a guest to take a session on behalf of our organization. The things to be aware of,
1. The guest is not familiar with you.
2. You have to manage him/her to take a session without a monetary benefit.
3. You have to Communicate with him/her through social media
4. The person is so friendly to communicate with new people.
Note: You have to manage a session for your own department. If you are in the Graphics Team then consider yourself as Graphics Designing Head and you have to arrange a session related to it.
Ans.

Shoe Barn Inc. is a privately owned firm with few investors. Investors forecast their earnings per share (EPS) to reach $2 this coming year. The average price-to-earnings (P/E) ratio for similar companies in the S&P 500 is 12. What will the estimated intrinsic value of the Shoe Barn Inc.'s stock?

Chavez Corporation reported the following data for the month of July: Inventories: Beginning Ending Raw materials $46,000 $39,500 Work in process $25,500 $36,000 Finished goods $41,500 $56,500 Additional information: Raw materials purchases $75,500 Direct labor cost $100,500 Manufacturing overhead cost incurred $68,500 Indirect materials included in manufacturing overhead cost incurred $11,800 Manufacturing overhead cost applied to Work in Process $67,500 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. The cost of goods manufactured for July is:

These selected condensed data are taken from a recent balance sheet of Sanson Company (in millions of dollars). Cash Accounts receivable Inventory Other current assets Total current liabilities $ 7.2 14.4 18.0 11.1 24.8 Additional information: Current liabilities at the beginning of the year were $35.6 million.
(a) What is the working capital? ____________
(b) What is the current ratio? _____________

If there are six firms in an industry and the market shares of the firms are 32 percent, 25 percent, 19 percent, 9 percent, 8 percent and 7 percent, the Herfindahl index is

A company has the following selected account balances: Sales $ 250,000 Sales Discounts 1,500 Sales Returns and Allowances 2,300 Sales Salaries Expense 56,000 Store Supplies Expense 15,000 Advertising Expense 8,000 Cost of Goods Sold 125,000 What is the gross profit that would appear on a multiple-step income statement:

First National Bank charges 11.4 percent compounded monthly on its business loans. First United Bank charges 11.6 percent compounded semiannually. Calculate the EAR for each bank.