If an Independent Contractor Enters into a Contract with a Third

question 79

Multiple Choice

If an independent contractor enters into a contract with a third party on behalf of the principal without express or implied authority from the principal to do so, who among the following is liable on the contract?

• A) the principal
• B) the independent contractor
• C) the third party
• D) both the principal and independent contractor

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Definitions:

Operational Plans

Detailed, short-term plans that outline how to achieve tactical objectives and daily operations of an organization.

Financial Plans

Detailed strategies outlining the allocation and management of funds to achieve specific financial goals or objectives.

Scenario Planning

A strategic planning method that organizations use to envision and develop strategies for multiple future scenarios.

Dynamic Environment

A situation or setting that is constantly changing and requires organizations or individuals to adapt quickly to new challenges and opportunities.