Fact Pattern 25-1 Nina and Orin Work at Pumps

question 27

Multiple Choice

Fact Pattern 25-1 Nina and Orin work at Pumps & Pipes Inc. (P&P) . Nina is a sales representative who works with P&P's customers. The company closely supervises all of its sales reps, and dictates their schedules. Orin works in P&P's engineering department, but does not deal with third parties.
Refer to Fact Pattern 25-1. With respect to third parties, Nina is P&P's

• A) an independent contractor.
• B) an employee only.
• C) an employee and agent.
• D) a principal.

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Definitions:

CODM (Chief Operating Decision Maker)

An individual or group responsible for making strategic decisions regarding the allocation of resources and assessing the performance of operating segments within an organization.

Discrete Financial Information

Specific financial data or metrics that are isolated or separated from other financial information to provide targeted insight or analysis.

Operating Results

The outcome of an entity's operational activities, typically reflected in its income statement.

Disclosure Standard

Refers to guidelines or regulations that dictate the information a company must make available to shareholders and the public to ensure transparency.