Virginia State Real Estate Exam Practice Question
Licensee A shows properties on commission and Licensee B is paid salary plus bonus. Their relationships with ABC Realty are:
Correct Answer: B
Rationale: Licensee A operates on commission, indicating a contractor relationship where they are typically independent and manage their own expenses. Licensee B, receiving a salary plus bonuses, suggests an employee status, as this structure usually entails a more controlled relationship with the employer, including benefits and tax withholdings.
Option A incorrectly identifies Licensee A as an employee, which contradicts the commission-based nature of their work. Option C suggests both are contractors, failing to recognize the employee status of Licensee B. Option D misclassifies both as employees, ignoring Licensee A's independent contractor status.
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