A Husband Started a Small Business and Agreed to Pay

question 5

Essay

A husband started a small business and agreed to pay his wife $1700 a month for her bookkeeping services. This was primarily a method of income-splitting for tax purposes. Unfortunately, the business was not as successful as they had imagined, and the husband couldn't afford to pay his wife that much money from the business. The marriage went sour, and after separation, the wife brought an action against the husband demanding back pay for the last 11 months, as well as compensation for loss of future earnings. Explain what defence the husband could best raise in these circumstances.

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Definitions:

Standardized Test

A test that is administered and scored in a consistent manner to ensure legal defensibility and fairness in measuring educational or cognitive abilities.

Test Statistic

A numerical value calculated from a statistical test's sample data, used to determine whether to reject the null hypothesis in the context of the test.

P-value

A measure in statistics that helps to determine the strength of the results in hypothesis testing, indicating the probability of observing data at least as extreme as the data actually observed, under the assumption that the null hypothesis is true.

Standardized Test

A test administered and scored in a consistent manner to ensure uniformity across different test takers or groups.