Under the Theory of _____ the Principal Basically Is Liable

question 28

Multiple Choice

Under the theory of _____ the principal basically is liable because of its own tort.

• A) direct liability
• B) respondeat superior
• C) joint liability
• D) vicarious liability

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Definitions:

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made at specific intervals, rather than continuously tracking each sale or purchase.

Cost Of Merchandise Sold

The total cost incurred by a business to sell its products, including the purchase price and other expenses directly related to procurement.

Journal Entry

A record in accounting that records a transaction, indicating the accounts and amounts debited and credited.

Cost Of Merchandise Sold

The total cost incurred to obtain goods sold by a company during an accounting period; it includes purchase price, freight in, and other costs related to procurement.