A Firm Is Considering Adding a Second Secretary to Answer

question 20

Essay

A firm is considering adding a second secretary to answer phone calls and make appointments.The cost of the secretary will be $10/hour and she will work 200 hours each month.If each new client adds $400 of profit to the firm,how many clients must the secretary arrange for the firm to break even?

Distinguish between liabilities arising out of negligent hiring versus actions within the scope of employment.

Examine the role of express, implied, and apparent authority in establishing liability.

Grasp the implications of exculpatory clauses and the conditions under which they may not protect a principal.

Understand the concept of joint and several liability in relation to principal and agent torts.

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Definitions:

Rate of Return

The gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost.

Compounded Semi-annually

A method of calculating interest where the interest is added to the principal twice a year, resulting in interest being earned on interest.

Compounded Semi-annually

Denotes the method of applying interest to a principal sum at mid-year and end of the year.

Ordinary General Annuity

A stream of equal payments made at regular intervals over a fixed period of time, where the payment period coincides with the interest period.