An Owner Ordinarily Is Not Liable for Harm Caused a Third

question 41

True/False

An owner ordinarily is not liable for harm caused a third person by the negligence of an employee of an independent contractor.

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Definitions:

Deferred Tax Liability

An accounting term that refers to a tax due in the future for income that has already been recognized in the financial statements.

Effective Tax Rate

The average rate at which an individual or a corporation is taxed, calculated by dividing the total amount of taxes paid by the taxable income.

Temporary Difference

A difference that arises between the tax base of an asset or liability and its carrying amount in the financial statements, which will result in taxable or deductible amounts in future years.

Deferred Tax Liability

A tax obligation that arises when taxable income is delayed or postponed to future periods, reflecting taxes that are expected to be paid in the future.