Because of the Duty to Inform, an Agent Must

question 146

Multiple Choice

Because of the duty to inform, an agent must:

• A) be able to show where money or property comes from and goes to
• B) keep her principal informed of all facts relevant to the agency
• C) engage in acts that could lead to personal liability
• D) perform responsibilities with the degree of care that a reasonable person would exercise under the circumstances
• E) record all transactions related to the agency

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Definitions:

Gross Earnings

The total amount of money earned by an individual or company before deductions such as taxes and retirement contributions.

Withholding Allowance

A claim made by an employee on the W-4 form that reduces the amount of tax withheld from their paycheck.

Federal Income Tax

A tax levied by the United States government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Gross Earnings

The total amount of money earned by an individual or corporation before any deductions are taken out.