The Sole Proprietor's Liability for the Actions of His or Her

question 16

Multiple Choice

The sole proprietor's liability for the actions of his or her employee is best described as which of the following:

• A) A sole proprietor is never responsible for torts committed by the sole proprietor's employee.
• B) A sole proprietor is responsible for actions taken by an employee while the employee is acting on behalf of the employer in the normal course of business.
• C) Both the sole proprietor and the employee may be liable for torts committed by the employee.
• D) Both B and C.

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Definitions:

Coupon Bond

A type of bond that pays the holder a fixed interest amount (coupon) at regular intervals until maturity, at which point the principal amount is returned.

Current Yield

The annual income (interest or dividends) earned from a security, expressed as a percentage of its current market price.

Trading

The act of buying and selling securities in financial markets, either for personal investment or on behalf of an institution.

Coupon Bond

A type of bond that pays the holder a fixed interest payment (coupon) at regular intervals until the bond's maturity, when the principal is repaid.