On January 1 Vernon and Engel became partners in a food brokerage business. Later, they disagreed about the way profits were being divided and expenses were being paid. On August 1 they dissolved the partnership by mutual agreement. Vernon ran the business during the winding-up period. He claimed that Engel had violated their agreement and therefore was not entitled to his share of the profits. Vernon also argued that because he had carried on the business during the winding-up period, Engel was not entitled to any commissions collected during that time. Is Vernon right? (Engel v. Vernon, 215 N.W.2d 506)

Imagine that you are going to be a pastry chef in a shop that will make all different types of specialty cupcakes. Write a letter to your business partner detailing which equipment you want to be purchased for the shop, and why. Be sure to explain the purpose of each piece of equipment. Your letter should be in a standard business letter format. Check your grammar and spelling before turning in your letter.

Business The retail price of a pair of shoes is a $98 \%$ increase from its wholesale price. The wholesale price of the shoes is $\$ 12.50$. What is the retail price?

For the case below, recommend a form of business organization. With each recom- mendation, explain how business income would be taxed if the owners adopt the form of organization recommended. Also list several advantages that the owners will enjoy from the form of business organization that you recommend.
 Dr. Ward and Dr. Liu are recent graduates from medical residency programs. Both are family prac tice physicians and would like to open a clinic in an underserved rural area. Although neither has any funds to bring to the new venture, a banker has expressed interest in making a loan to provide start-up funds for their practice.

Natalie is busy establishing both divisions of her business (cookie classes and mixer sales) and completing her business degree. Her goals for the next 11 months are to sell one mixer per month and to give two to three classes per week. Natalie has decided to use a periodic inventory system and now must choose a cost flow assumption for her mixer inventory.

Lewis owned a vacant building. He persuaded Dinkelspeel to open and to conduct a business called The Buffet in the property. Together, they purchased furniture, fixtures, and merchandise. They agreed that Dinkelspeel was to run the business and that profits were to be divided equally. Lewis’s interest was not to be disclosed to the public, although he was to raise necessary funds and provide the building space. When the International Association of Credit Men sued both parties for goods sold to The Buffet, Lewis denied liability as a partner. Is he a partner? If so, what kind? If he is a partner, what is his liability? (International Association of Credit Men v. Lewis, 50 Wyo. 380, 62 P.2d 294)

Therese, an outside salesperson, uses her car for both business and pleasure. Last year, she traveled 30,000 miles, using 900 gallons of gasoline. Her car gets 40 miles per gallon on the highway and 25 in the city. She can deduct all highway travel, but no city travel, on her taxes. How many miles should Therese be allowed as a business expense?

Business The sale price of an item is a function $s$ of the original price $p$, where $s(p)=0.80 p$. If an item's original price is $\$200$, what is the sale price of the item?

Visit your favorite fast-food restaurant. Observe its business operations.

Required

1. Describe all business activities from the time a customer arrives to the time that customer departs.
2. List all costs you can identify with the separate activities described in part 1.
3. Classify each cost from part 2 as fixed or variable and explain your classification.

Santana Rey, owner of Business Solutions, decides to diversify her business by also manufacturing computer workstation furniture. Required

1. Classify the following manufacturing costs of Business Solutions as either (a) variable or fixed and (b) direct or indirect.

2. Prepare a schedule of cost of goods manufactured for Business Solutions for the month ended January 31, 2016. Assume the following manufacturing costs: Direct materials: $\$ 2,200$ Factory overhead: $\$ 490$ Direct labor: $\$ 900$ Beginning work in process: none (December 31, 2015) Ending work in process: $\$ 540$ (January 31, 2016) Beginning finished goods inventory: none (December 31, 2015) Ending finished goods inventory: $\$ 350$ (January 31, 2016)
3. Prepare the cost of goods sold section of a partial income statement for Business Solutions for the month ended January 31, 2016.

Carlos wants to print 800 one-page flyers for his landscaping business. He has a printer that is capable of printing 8 pages per minute. His business partner lias another printer that prints 10 pages per minute. How long would it take Carlos' printer to print all the flyers? How long would it take his partner's printer?

Business Ethics (Fall 2005) published rankings of master in business administration (MBA) programs worldwide. Each of the 30 business schools was rated according to student exposure to social and environmental issues in the classroom. Ratings ranged from 1 star (lowest-rated group) to 5 stars (highest-rated group). A summary of the star ratings assigned to the 30 MBA programs is reproduced in the table.

a. Decide the categorical variable (and its levels) measured in this study.

Situation You have been asked to present a skit that illustrates acceptable and unacceptable business behavior in another country. You will present your skit to your class with the help of one or more of your classmates.

Activity Choose a country to research and illustrate its business customs.

Evaluation You will be evaluated on how well you meet the following performance indicators:

• Describe the business situation you will illustrate.
• Demonstrate an awareness of the customs of the country you chose.
• Give examples of behaviors that are acceptable and unacceptable in that country.
• Describe why each behavior that you presented is acceptable or unacceptable.
• Present your skit to your classmates.

Which form of business organization is looked upon as being an artificial entity, separate from its owners? (a) sole proprietorship (b) partnership (c) corporation