A Gratuitous Agent Is

question 30

Multiple Choice

A gratuitous agent is:

• A)an agent who is not known to the principal.
• B)an agent who is not paid by the principal.
• C)required to exercise a higher standard of care than a professional agent.
• D)an agent who is not an employee of the principal.

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Definitions:

Deferred Income Taxes

Taxes that are assessed on income in one period but are not paid until a future period, often due to timing differences in recognizing revenue and expenses for tax and accounting purposes.

Future Payments

Obligations that a company is required to pay in the future, often as part of financing arrangements or purchase agreements.

Financial Affairs

Financial affairs encompass all aspects of finance including investments, assets, liabilities, income, and expenses related to an individual, business, or organization.