Binding Agency Relationships May Arise in a Number of Ways

question 61

Multiple Choice

Binding agency relationships may arise in a number of ways.These include

• A)conveying the impression that one person has the authority to act on behalf of another.
• B)an agreement in compliance with the Statute of Frauds.
• C)circumstances in which a person may act on behalf of and bind another to avoid or mitigate an emergency.
• D)by estoppel.
• E)All of these.

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Definitions:

Married Filing Jointly

A tax filing status for married couples who choose to file a single tax return together, combining their incomes and deductions.

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicating the rate applied to each additional dollar of income.

Taxable Income

The amount of income used to determine how much tax an individual or a company owes to the government in a given tax year.

U.S. Tax Court

A federal court that provides taxpayers a venue to dispute tax assessments by the IRS without having to pay the disputed amount upfront.