Typically a Principal Is Not Held Liable for the Actions

question 90

Multiple Choice

Typically a principal is not held liable for the actions of a nonemployee agent,but an exception to this general rule is:

• A)If the principal profits more than $100 by the nonemployee agent's actions
• B)The principal's hiring of a dangerously incompetent nonemployee agent
• C)The principal filing a Notice of Danger
• D)The principal notifying an incorporator of the independence of a nonemployee agent

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Definitions:

Actual Results

The real outcomes or data recorded from operations or activities, compared to projections or budget expectations.

Net Operating Income

A company's income after operating expenses are deducted, but before income taxes and interest expenses are subtracted.

Flexible Budget

A budget that adjusts or varies with changes in the volume or activity level of a company.

Units

Measurements or quantities of a product or service, often used as a basis for transactions and inventory.