Assignment 5

1. Questions for Critical Thinking A. As a young entrepreneur, you may soon be in the position of hiring one or

more of your college friends in your own business. What are the advantages of hiring your friends? What are the potential pitfalls?

B. Hiring an employee is a big step for a small business. How can you make a wise hiring decision if so many limitations are put on the interview questions you can legally ask?

2. Experience This …. Find a copy of a small business’s employee handbook, either from your current job or from a local small business owner (it may be interesting just do find out how many don’t even have one). Compare the sections in this handbook with the “Employee Handbook” section in this chapter. Is everything that an employee would need to know included in this handbook? What is missing? Does everything included in this handbook appear to comply with employment law?

3. What Would You Do? Todd owns and managers a T-shirt shop in a small resort town. He has two full-time employees who have been with the business for more than three years. He also employs as many as five part-time employees, depending on the tourist season. They help him keep the shop open from 10 A.M to 9 P.M. seven days a week. Todd opens the shop every day but typically has his employees close. Whoever closes the store follows a checklist of closing procedures, including ringing out the cash bag for the next day’s opening cash on hand. As with many amount, but usually no more than a couple of dollars. One day Todd opened the store and found that the cash drawer was short $35 for the previous day. Todd called a meeting that afternoon and told all seven employees that they would each have to chip in $5 to cover the shortage and that any time there are a shortage, they would have to split the reimbursement. Todd walked out of the room. The seven employees sat in disbelief. Questions:

A. Is Todd within his legal rights to take this action? If his actions are legal, what are some possible consequences?

B. How would you have handled the situation if you were Todd?

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