Regarding the Relationship Between a Principal and an Independent Contractor,which

question 78

Multiple Choice

Regarding the relationship between a principal and an independent contractor,which of the following statements is false?

• A)The principal does not control the details of the independent contractor's performance.
• B)An independent contractor is not an employee of the principal.
• C)If an independent contractor commits a crime without the authorization of the principal,the principal is not liable for the agent's crime.
• D)A principal is not liable for extremely dangerous actions engaged in by the independent contractor.
• E)An individual who hires an independent contractor cannot be held liable for the independent contractor's tortious actions under the doctrine of respondeat superior.

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Definitions:

Par Value

The face value of a bond or stock, as stated by the issuing company; it is often a nominal figure that does not necessarily equate to the market value.

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders.

MCC Schedule

Stands for Marginal Cost of Capital Schedule, which displays the relationship between the cost of new capital and the total amount of new capital raised.

Capital Structure

Capital structure refers to the way a corporation finances its assets through some combination of equity, debt, or hybrid securities.