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:

Expected Return

The anticipated return on an investment, taking into account the probabilities of each possible outcome.

Independent

Free from external control and constraint, or in finance, referring to analysis or advice that is unbiased by conflicts of interest.

Negatively Correlated

Negatively correlated refers to two variables moving in opposite directions; as one increases, the other decreases, and vice versa.

Standard Deviations of Returns

A measure of the volatility or risk associated with the return on investment, indicating how much the returns can fluctuate over a period.