In Which of the Following Circumstances Can a Principal Be

question 37

Multiple Choice

In which of the following circumstances can a principal be held liable for the torts of an independent contractor?

• A) in no circumstances
• B) in the same circumstances as the principal would be held liable for the torts of an agent
• C) when the principal is negligent in selecting the independent contractor
• D) when the independent contractor is hired to undertake a dangerous activity
• E) both C and D

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Definitions:

Continuous Budgeting

A process of constantly updating a budget for a set period in the future to reflect changes as they happen.

Safety Stock

Additional inventory held by a company to prevent stockouts, usually due to uncertainties in supply and demand.

Master Budget

A comprehensive financial plan that combines all of the individual budgets related to sales, costs, expenses, assets, and liabilities.

Merchandise Purchases Budget

A financial plan detailing the amount of goods that a retail or wholesale company plans to buy over a certain period to meet anticipated sales.