Which of the Following Is True When a Person Hires

question 3

Multiple Choice

Which of the following is true when a person hires an independent contractor to perform some tasks?

• A)The contract creates a principal-agent relationship.
• B)The contractor is responsible for the proper performance of the contract.
• C)The person hiring the contractor retains the right to control how the independent contractor performance the terms of the contract.
• D)The person hiring the contractor is liable for any injuries the contractor causes to third parties.

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Definitions:

Socialize Losses

The process where financial losses are distributed broadly across society or a large group, rather than being borne solely by the entity responsible for incurring them.

Imprudent Investment

Financial allocations or commitments made without proper judgment or care, often leading to significant losses or suboptimal financial performance.

Public Choice Theory

An economic theory that studies how public sector decisions are made, considering individuals in the public sector as self-interested agents and applying the tools of economics to political science.

Government Decision Making

The process by which governments choose between different policies, actions, or strategies to address specific public issues or problems.