Principals Are Liable for the Acts of Independent Contractors If

question 15

Multiple Choice

Principals are liable for the acts of independent contractors if:

• A)the acts are inherently dangerous activities.
• B)the independent contractor was negligently hired.
• C)Both a and b
• D)None of the above

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Definitions:

Average Costs

The total costs divided by the number of units produced, giving a per unit cost average.

Total Variable Cost

The sum of all costs that vary with output level, including materials, labor, and other costs that increase with production volume.

Relevant Range

The range of activity within which the assumptions about fixed and variable cost behavior are valid.

Average Costs

The total costs (fixed and variable) divided by the total quantity produced, representing the cost per unit of production.