Which of the Following Is True of an Employer-Employee Relationship

question 33

Multiple Choice

Which of the following is true of an employer-employee relationship?

• A)An employee has implied power of attorney towards the principal.
• B)An employee has authority to act on behalf of the principal.
• C)An employee can enter into contracts on behalf of the employer.
• D)An employee is hired to perform a task or service.

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Definitions:

Income

The amount of money received by an individual or entity, usually in exchange for labor or services, or through returns on investments.

Utility Function

A mathematical representation in economics that quantifies the satisfaction or happiness derived by a consumer from consuming goods and services.

Substitution Effect

The economic principle that as the price of a good rises, consumers will replace it with cheaper alternatives.

Income

The financial gain received by an individual or entity, typically through wages, investments, or business operations.