Emmett, an Agent for Fridley, Signs an Agreement with Glover

question 57

Multiple Choice

Emmett, an agent for Fridley, signs an agreement with Glover on Fridley's behalf but neglects to tell him that the agreement requires the payment of a certain tax. The government prosecutes Fridley for failing to pay the tax. He is​

• A) ​liable, because notice to Emmett is notice to Fridley.
• B) ​liable, because notice to Glover is notice to Fridley.
• C) ​not liable, because Emmett did not notify Fridley of the tax.
• D) ​not liable, because Glover did not tell Fridley about the tax.

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Definitions:

Unrestricted Contribution

Donations or funds given to an organization without any conditions or limitations on their use.

Unrestricted Resources

Funds or resources received by an organization that are not subject to stipulations on their use by donors, allowing for flexibility in allocation.

Restricted Resources

Funds or resources that are designated for specific purposes by donors, grantors, or regulatory authorities, limiting their use.

Capital Assets

Long-term assets acquired for use in a business, intended for the purpose of earning income and not for resale.