Which of the Following Types of Relationship Exists When a Person

question 73

Multiple Choice

Which of the following types of relationship exists when a person hires another person to perform some form of physical service but does not authorize that person to enter into contracts on behalf his or her behalf?

• A)employer-employee relationship
• B)employer-agent relationship
• C)principal-third party relationship
• D)principal-agent relationship

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Definitions:

Taxable Income

The amount of an individual's or corporation's income that is subject to income tax, after exemptions, deductions, and allowances are factored in.

Fraudulent Activity

Deliberate deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.

Income Tax Liability

The amount of money an individual or corporation owes to the government based on the taxable earnings for a fiscal period.

Income Tax Expense

Income tax expense is the amount of money a company is required to pay in taxes based on its taxable income for a given period.