Which of the Following Is Most Important in Determining Whether

question 44

Multiple Choice

Which of the following is most important in determining whether a principal is liable to a third party for an agent's actions?

• A) whether the principal provided safe working conditions
• B) whether the principal had a record of indemnifying his or her agents
• C) whether the principal was disclosed to the third party
• D) whether the agent had abided by the duty of loyalty

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Definitions:

Variable Cost

Expenses that change in proportion to the activity of a business.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Raw Material Costs

The expense associated with the basic materials required in the production of goods.

Direct Labour Costs

Direct Labour Costs refer to the wages paid to workers directly involved in manufacturing or producing goods, in contrast to indirect labor involved in supportive roles.