Which of the Following Statements About Dependent Agents Is True

question 66

Multiple Choice

Which of the following statements about dependent agents is true?

• A) The office in which the dependent agent is unimportant and is not subject to the host country's tax laws.
• B) A dependent agent is considered an employee for purposes of the host country's labor laws.
• C) A principal is not liable to third parties for a dependent agent's misdeeds.
• D) All of these are correct.

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Definitions:

Partnership Business

A business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Agreement.

Ease of Formation

Refers to the simplicity and low barriers to legally establishing and starting a new business entity.

Governmental Regulations

Rules established by government bodies intended to control and govern the conduct of businesses and individuals to ensure compliance with policies and standards.

Partnership Assets

Partnership assets include all the resources owned by a partnership, ranging from cash, property, and equipment to intangible assets, used in the operation of the partnership.