Under the Theory of _____,A Company Can Be Held Liable

question 24

Multiple Choice

Under the theory of _____,a company can be held liable for violations of ______ law by its employee,even if a manager told the employee not to violate the law.

• A) vicarious liability; civil
• B) aided-in-the-agency; civil
• C) vicarious liability; criminal
• D) disclosure of principal; civil

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Definitions:

Common Stock

Shares of ownership in a corporation that entitle the shareholder to a share of the company’s profits and a right to vote on company matters.

Consolidation Worksheet

A tool used in preparing consolidated financial statements that combines the assets, liabilities, and equity of a parent company and its subsidiaries.

Par Value

The nominal or face value of a bond, share of stock, or another financial instrument, as stated by the issuing company.

Fair Value

The capital acquired from the sale of an asset or expended in the transfer of a liability in a smooth transaction among market intermediaries on the measurement date.