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

question 38

Multiple Choice

Which of the following statements 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:

Liquidity Premiums

Additional yield that investors demand for holding securities that are not easily sold at their fair market value without a significant price concession.

Callable Bonds

Bonds that can be redeemed by the issuer prior to their maturity date at a predetermined call price.

Required Rate Of Return

The minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project.

Reinvestment Rate Risk

Reinvestment Rate Risk is the risk that the returns from reinvesting cash flows will be lower than initially anticipated due to changes in interest rates.