Which of the Following Is Not Correct Regarding the Relationship

question 77

Multiple Choice

Which of the following is not correct regarding the relationship between an independent contractor and a principal?

• A) The contractor is liable under respondeat superior .
• B) The contractor generally contracts to perform services but is not controlled by the principal.
• C) The right of control is the essential and often decisive factor in determining whether someone is an independent contractor or an employee.
• D) Under some circumstances, a principal will be vicariously liable for torts committed by a carefully selected independent contractor.

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Definitions:

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Interest Expense

The cost incurred by an entity for borrowing funds, represented as a charge against its earnings or net income.

Net Debt

The amount of debt remaining after deducting cash and cash equivalents from total debt obligations.

Equity Holders

Individuals or entities that own equity shares in a company, thus having an ownership interest.