In What Way Are Professionals Similar to One Another

question 41

Multiple Choice

In what way are professionals similar to one another?

• A) Both are considered employees of their clients who are,in turn,vicariously liable for their negligence.
• B) They have ethical obligations that other employees and service providers
• Do not have and are usually members of professional governing bodies.
• C) They are governed by employment law and are usually regulated by federal bodies that establish rules of conduct and codes of ethics.
• D) Both submit bills to an independent panel for review.

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Definitions:

Parent-Subsidiary Corporations

A relationship between two companies where one, the parent, controls the other, the subsidiary.

Consolidated Tax Return

A tax return that combines the tax liability of all subsidiary companies with that of the parent company, simplifying tax filing for corporate groups.

Corporate Distributions

Payments made by a corporation to its shareholders from earnings, typically in the form of dividends.

Dividends

Payments made to shareholders out of a corporation's profits.