Complete Loss of Intellectual/legal Capacity on the Part of the Principal

question 4

Multiple Choice

Complete loss of intellectual/legal capacity on the part of the principal will:

• A)Give the principal the right to elect to terminate the agency agreement.
• B)Automatically terminate the agency unless the agent was appointed under the authority of a general power of attorney.
• C)Automatically terminate the agency unless the agent was appointed under the authority of an enduring power of attorney.
• D)Increasing the standard of care owed by the agent to the principal and broaden the scope of their duties.

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Definitions:

Calendar-Year Basis

A method of accounting that uses the 12-month period from January 1 to December 31 as its fiscal year for financial reporting.

Fiscal Year

A 12-month period used for accounting and reporting purposes, which may or may not align with the calendar year.

Payroll Taxes

Taxes that are withheld from employees’ salaries or wages by the employer and paid directly to the government. These can include income tax, social security, and Medicare taxes.

Federal Income Taxes

Federal income taxes are the taxes levied by the federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.