Sam Is a Sales Representative for the INC Corporation

question 36

Multiple Choice

Sam is a sales representative for the INC Corporation.Sam has a terrible driving record and has had his driver's license revoked,but nevertheless he continues to drive the company car for his job.One day he drives too fast for conditions,goes through a red light,and strikes a pedestrian.The accident happened despite the fact Sam's supervisor at INC had repeatedly reprimanded him and advised him to drive more cautiously.INC has:

• A) no liability,because they did not authorize Sam to drive carelessly.
• B) no liability,because Sam's actions were not a tort.
• C) liability even though it did not authorize Sam to drive carelessly,because it employed an improper person as its agent.
• D) no liability,because it has adequately supervised Sam as its agent.

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Definitions:

Consumption

The total amount of goods and services consumed by households over a specific time period.

Nominal GDP

The total worth of all end products and services made inside a nation over a specified time frame, valued at present-day prices.

Real GDP

Measure of a country's economic output adjusted for price changes (inflation or deflation), representing the value of all goods and services produced over a specific time period at constant prices.

Constant Base-Year Prices

A method to measure economic data where figures are adjusted for inflation to reflect real purchasing power, using a specific base year's prices.