As a General Rule,a Principal Is Not Liable for Torts

question 24

True/False

As a general rule,a principal is not liable for torts committed by independent contractors while performing the principal's business.

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Definitions:

Fair Value

A financial accounting term used to describe the estimated market value of an asset or liability based on current market conditions.

Noncontrolling Interest

A stake in a company owned by minority shareholders that doesn’t give them control over the company's operational and financial decisions.

Noncontrolling Interest

A minority share in a subsidiary that is not enough to exert control, often reflected in the parent company's financial statements as part of equity but separate from the parent's equity.

Consolidated Balance Sheet

A financial statement that combines all the assets, liabilities, and equity of a parent company and its subsidiaries into one document.