What Is Vicarious Liability

question 16

Multiple Choice

What is vicarious liability?

• A) nonliability
• B) liability for multiple torts
• C) liability without knowledge
• D) liability without fault

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Definitions:

Purchase of Merchandise

The acquisition of goods for resale, typically recorded as an inventory asset until the goods are sold.

Operating Activities

Refers to the primary activities that constitute the main revenue-producing activities of an organization, such as sales of goods or services.

Indirect Method

A financial reporting approach used for creating cash flow statements, where net income is adjusted for changes in balance sheet accounts to calculate cash flow from operating activities.