A Principal May Be Liable If He or She Gives

question 28

True/False

A principal may be liable if he or she gives improper instructions that result in the agent's committing a tort.

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Definitions:

Perpetual Inventory

An inventory management system where inventory levels are updated in real-time following each purchase or sale.

Merchandising Transactions

Transactions that involve the buying and selling of merchandise, crucial for businesses in the retail sector to generate revenue.

Net Sales

The net sales income after taking away returns, credits for damaged or lost goods, and discounts.

Gross Margin

The difference between sales revenue and the cost of goods sold, indicating the profit margin before accounting for overheads, salaries, and other expenses.