In Order to Avoid Liability for the Negligent Hiring of a Dangerous

question 43

Multiple Choice

In order to avoid liability for the negligent hiring of a dangerous individual, the law imposes a duty on an employer to:

• A) take all the steps expected of a reasonable person in similar circumstances.
• B) take all steps necessary to exhaust all sources of information about a prospective employee.
• C) exhaust all sources of information about a prospective employee.
• D) require all prospective employees to certify that they have never been convicted of a crime.

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Definitions:

Activity Variances

Differences between planned and actual costs arising from changes in activity levels in various cost centers within a business.

Cost Drivers

Factors that cause a change in the cost of an activity, used to assign overhead costs in activity-based costing systems.

Vocational School

An educational institution that provides specialized training and education targeted toward particular careers or trades.

Flexible Budget

A flexible budget adjusts expenses based on changes in actual revenue or other activity levels, allowing for more accurate financial planning.