Which of the Following Statements Is Correct with Respect to the Employer's

question 127

Multiple Choice

Which of the following statements is correct with respect to the employer's liability for the conduct of the employee?

• A) The employer is always liable for the wrongful conduct of his employee.
• B) An employer is only liable for the wrongful conduct of his employee that takes place during the course of the employment.
• C) If a person is injured by an employee acting in the course of the job, that person must sue the employer, not the employee.
• D) Any employee can bind an employer in contract.
• E) All employees are agents of the employer.

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Definitions:

Revenue

Income generated from normal business operations or other sources, serving as a company's primary source of income.

Spending Variance

The difference between the actual amount spent and the budgeted amount for a particular accounting period.

Net Operating Income

The revenue earned from normal business operations after deducting operating expenses but before interest and taxes.

Activity Variance

The difference between the planned activity level of cost-driving activities and the actual level incurred, impacting the budget or costing analysis.