Chinn Has Been a Bus Driver for a Tour Bus

question 23

Multiple Choice

Chinn has been a bus driver for a tour bus company for the past 15 years and has an excellent driving record. He had a back injury last year for which he is still undergoing treatment. If Chinn has an accident while driving one of the tour buses because of the effects of his medication and passengers are injured in the accident, the company will most likely be liable for _____.

• A) snap judgment
• B) negligent hiring
• C) negative emphasis
• D) negligent retention

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Definitions:

Initial Investment

The amount of money used to start a project, business, or investment.

Cash Break-even Point

The point at which a business generates enough cash flow to cover its operating expenses, without generating a profit or loss.

Variable Cost

Expenditures that fluctuate according to the degree of production or the volume of goods produced.

Fixed Cost

Costs that remain constant regardless of any change in a firm's activity level, such as lease payments or insurance premiums.