Which of the Following Is a True Statement About the Employer-Employee

question 53

Multiple Choice

Which of the following is a true statement about the employer-employee relationship?

• A) An employee does not owe a fiduciary duty to his or her employer.
• B) An employee for a company could not also be an agent at the same time for the company.
• C) One responsibility of an employer is to provide the employee with lifetime work availability.
• D) If an employer contracts to paint Mr. Shore's barn and sends the employee out to do the painting, if the employee is not paid he can sue his employer or Mr. Shore for his wage.
• E) The critical factor in this relationship is control; the employer tells the employee not only what to do but also how to do it.

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Definitions:

Partial Equity Method

The partial equity method is an accounting approach used when an investing company has significant influence, but not full control, over an investee, recognizing income to the extent dividends are received.

Goodwill

An intangible asset that arises when a company acquires another business for more than the fair value of its net identifiable assets.

U.S. GAAP

Generally Accepted Accounting Principles in the United States, a set of guidelines and standards for financial reporting and accounting practices to ensure consistency and transparency.

IFRS

International Financial Reporting Standards, which are a set of accounting standards developed by the International Accounting Standards Board (IASB) for the preparation of public company financial statements globally.