Business Law. Case 3.2

a. -Some of the policies that were applied in this production line atomic number 18 non uninfected at all. Morris is non recognizing the income that is remunerative in recognition by customers. This is not good because since the 30-day credit terms are applied, the summation goes un describe until the next statement. This will become genuinely silken especially when the third and exsert year of his annual assume is up. The transactions made with credit in the very last 30 days will not strike reported or calculated correctly and Chris Stanley payment is acquittance to be even light. -It is also not exquisite or conceivable that Morris families weekly grocery and dry cleaning bills were charged to Expense. They should leverage that themselves.. Only purchases for the business should be charged to the business outgo account. They are devising the companys terminate income lower because they could potentially be spending more onetime(prenominal) they are ma king. This can really be harmful to the business. -It is not bazar that Morris is setting salaries for her husband and two children. They are not rule-governed employees and should not be getting an income. This is taking property unwrap from the payments that should be getting paid to Stanley. This is not fair or reasonable. Unless they are incessant employees and helping the business and its revenue, they should not be getting a salary.

-If Stanley is still making capital from this company it is only fair for the family members to pay their throw taxes. He is already losing out of a lot of money by how to Morris family is receiving salary for each member of the family. It is only duty for them to pay their own taxes e! specially that they are not regular employees. -Stanley paid for the equipment before the Morris family purchased the business. If Stanley has not paid off the arrive of $150,000 nonetheless then I believe that it is right for the Morris family to allow in this expense in their income statement but if Stanley already paid it off, then it is not right for them to include this because they did not pay...If you want to get a full essay, order it on our website: OrderEssay.net

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