Which of the Following Statements Regarding a Principal's Duty to Pay

question 12

Multiple Choice

Which of the following statements regarding a principal's duty to pay unemployment taxes is true?

• A) A principal must pay unemployment taxes for both an employee and an independent contractor.
• B) A principal must pay unemployment taxes for an independent contractor but not for an employee.
• C) A principal must pay unemployment taxes for an employee but not for an independent contractor.
• D) A principal is not required to pay unemployment taxes for either an employee or an independent contractor.

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Definitions:

Partnership Debts

Financial obligations that are the responsibility of a business partnership, to be repaid from the partnership's assets.

Ratification

The act of officially approving or confirming an action or decision, usually after the fact, which might not have been initially authoritative or agreed upon.

Apparent Authority

Apparent authority refers to a situation where a third party is led to believe that an agent has the right to act on behalf of a principal, regardless of whether this is true.

Actual Authority

The explicit power given to an agent by a principal, enabling the agent to perform acts on behalf of the principal.