​A Business Owner Makes 50 Items a Day

question 33

Multiple Choice

​A business owner makes 50 items a day.He spends 8 hours in producing those items.If hired elsewhere he could have earned $10 an hour.The item sells for $10 each.Production occurs seven days a week.If the explicit costs total $10,000 a month,the accounting profit for the month equals:

• A)​$1,760
• B)$2,240
• C)$11,760
• D)​$5,000

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Definitions:

Vicarious Liability

Refers to the situation where one party is held partly responsible for the unlawful actions of a third party.

Scope of Employment

The range of activities and duties an employee is expected to perform as part of their job, as defined by their contract or role description.

Respondeat Superior

A legal doctrine that holds employers or principals liable for the actions of their employees or agents conducted within the scope of their employment or agency.

Indemnification

A provision where one party agrees to compensate another for any loss or damage incurred, often seen in contracts.