Which of the following statements about dependent agents is true?

Question

Quizplus · Accepted Answer

A dependent agent is someone who acts on behalf of a principal in a foreign country and is closely tied to the principal. In most cases, the host country may consider the dependent agent an employee of the principal, which gives rise to certain obligations under labor laws. Option A is incorrect because the location of the office is generally not the deciding factor in determining the host country's tax laws. Option C is incorrect because the principal may still be liable for the actions of their dependent agent, particularly if they were acting within the scope of their authority.

Which of the Following Statements About Dependent Agents Is True