A Principal Is Not Normally Liable for the Tort of an Agent

question 21

True/False

A principal is not normally liable for the tort of an agent committed within the scope of the agency or employment.​

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Definitions:

Binominal Model

A mathematical model used to price options by considering the possible prices of the underlying asset at expiration.

Strike Price

Strike price is the fixed price at which the holder of an options contract can buy (in case of a call option) or sell (in case of a put option) the underlying asset.

Risk-Free Rate

The rate of return on an investment with zero risk, typically represented by the yield on government securities like U.S. Treasury bonds.

Recessionary Gap

The situation where an economy's real GDP is less than its potential GDP, indicating underutilized resources and economic slack.