In What Circumstances Will an Employer Be Vicariously Liable for the Negligent

question 17

Multiple Choice

In what circumstances will an employer be vicariously liable for the negligent act of an employee?

• A)Always.
• B)Only if the employee is an independent contractor.
• C)Never.
• D)Only if the negligent act was carried out in the course of their employment.

---

Definitions:

Abnormal Earnings

Earnings that are above or below the normal or expected level due to unusual circumstances or events.

Actual Earnings

The real profits generated by a company within a specific period, usually reported quarterly or annually.

Earnings Quality

An assessment metric that evaluates the degree to which a company's earnings are derived from sustainable sources and are repeatable, controllable, and bankable.

Multi-Step Income

Multi-step income statements provide a detailed breakdown of revenues, expenses, and profit, distinguishing between operating and non-operating activities.