Detainees for Profit

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Libre, a for-profit company whose name means “free” in Spanish, is charging immigrants who sign contracts $420 per month for their freedom while wearing the company’s GPS devices. The company is now subject to a number of lawsuits and allegations of fraud by immigrants. Questions: 1. Do you think a company should be allowed to… Read more »

Really?

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Commonly called “pay-to-stay” or “private jail,” at least 26 jails in Los Angeles and Orange counties are opening their doors to defendants who can afford the option. This is evolving into a two-tiered justice system that allows people convicted of serious crimes to buy their way into safer and more comfortable jail stays. Questions: 1…. Read more »

Cheap Drinks?

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McDonalds is trying to mix it up. No all-day breakfast but cheap drinks. Will it work? Questions: 1. What are the profit margins on drinks? 2. Who is McDonalds’ CEO? How long has he been there? 3. When does the drink promotion begin? 4. What is happening in the fast-food restaurant industry overall in terms… Read more »

Election Day A Holiday?

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According to this article, lawmakers in California have introduced a bill into the State Assembly aimed at increasing voter turnout by making Election Day a paid holiday. Questions: 1. What would be the costs of this bill? Also provide any accounting journal entries that might be required. 2. What would be the benefits of this… Read more »

The Dizzying Student Loan Game

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The Feds claim that the nation’s largest student loan servicer gave rushed and costly advice. Questions: 1. What is the amount or size of the U.S. government’s student loan program in dollars? 2. What is Navient? 3. How would you describe the structure of Student loan servicing? 4. What are some of the claims about… Read more »

Snags at Starbucks

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At Starbucks, customers are now able to order and pay for coffee via their phones, so many of them now head directly to the part of the cafe where beverages are handed out. Various snags contributed to company’s lower-than-expected sales and the coffee giant is working to correct problem, according to its Chief Operating Officer…. Read more »

Xiaomi – Cheap phones online may not be the key to success.

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Xiaomi, once hailed as an Apple iPhone slayer in China, now admits that they moved too fast to outpace their competitor. The company’s founder, Lei Jun, wrote his employees this week, indicating that the company needs to focus on the future and long-term sustainability. Questions: 1. Who are the domestic rivals to Xiaomi in the… Read more »

A Mysterious Amount of Net worth!

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In 2012, Forbes dropped J.K. Rowling after eight years on its authoritative billionaires list, saying high British taxes and large charitable contributions had eroded her fortune. Questions: 1. Why should Forbes rethink that? 2. If Rowling gets equivalent of Universal Studios Park ticket sales equal to Spielberg, how much of that would a $100 ticket… Read more »

All I got was a Plaque!

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In April 1967, hamburger lovers in Uniontown, Pa., south of Pittsburgh, met a newer, bigger burger. Introduced by a local McDonald’s, it was called the Big Mac, and for 45 cents it delivered, as a 1970s jingle would have it, “two all-beef patties, special sauce, lettuce, cheese, pickles, onions on a sesame-seed bun.” Questions: 1…. Read more »

You Deserve a Break Today!

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According to Reuters, McDonald’s Corp has agreed to pay $3.75 million to settle a lawsuit claiming it was liable for labor law violations by a California franchisee, marking what lawyers said was the first time the company has settled legal claims by a group of U.S. workers at one of its franchises. Questions: 1. Where… Read more »