Vicarious Liability Will Not Be Imposed on a Principal Unless

question 28

True/False

Vicarious liability will not be imposed on a principal unless the agent was acting within the scope of the agent's authority.

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Definitions:

Acquisition

The process of obtaining control of another company by purchasing its shares or assets.

Significant Influence

The power to participate in financial and operating policy decisions of an investment, without having full control or outright ownership.

Recognition of Goodwill

The accounting practice of formally acknowledging and reporting the value of goodwill on the financial statements.

Acquiring Not-For-Profit Entity

The process by which one not-for-profit organization takes control over another, either wholly or in significant part.