Because a Corporation May Be Liable for the Misconduct of Its

question 23

True/False

Because a corporation may be liable for the misconduct of its employees,the firm needs to be careful about whom it hires and how much to monitor and supervise them.

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Definitions:

Price Sensitive

A term describing how the demand for a product changes in response to price changes; consumers are highly reactive to changes in price.

Elastic Demand

A situation in which the demand for a product or service significantly changes in response to a change in its price.

Elasticity of Demand

A measure of how responsive the quantity demanded of a good or service is to a change in its price.

Total Revenue

The total income received by a firm from the sale of its goods or services before any costs or expenses are deducted.