Which of the Following Statements Is True About the Liability

question 75

Multiple Choice

Which of the following statements is true about the liability of principals for the acts of their agents?

• A) Principals are responsible whenever the agents commit torts or criminal acts.
• B) Principals are never responsible for any of the torts committed by their agents.
• C) A principal is responsible only for the torts committed within the scope of the agent's employment.
• D) A principal is liable for torts committed by the agent if the agent was in an unauthorized place at the time of commission of the tort.

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Definitions:

Income and Losses

Represents the financial performance of a business, where income refers to the earnings and losses indicate the expenses exceeding earnings over a period.

Original Investments

The initial amount of money put into purchasing assets or starting a venture, setting the foundation for future growth or income.

Net Income

The total profit or loss a company, generates after all expenses, taxes, and costs have been deducted from total revenue.

Salary Allowances

Specific amounts allocated regularly, often monthly, for salaries, including any adjustments for benefits or deductions.