Andrew has been hired to do some work for Rossi Enterprises. What factors would a court consider in determining if Andrew is an employee or an independent contractor? Why does the designation matter?
In determining if agents are employees or independent contractors, courts consider whether: the principal supervises the details of the work; the principal supplies the tools and place of work; the agents work full-time for the principal; the agents receive a salary or hourly wages, not a fixed price for the job; the work is part of the regular business of the principal; the principal and agents believe they have an employer-employee relationship; and the principal is in business. The distinction affects the potential liability of the principal. A principal may be liable for the torts of an employee or servant, but generally is not liable for the torts of an independent contractor.
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Discuss the rethinking taking place regarding the time frame used in American business performance systems
Although restrictive covenants can potentially reduce moral hazard, a problem with restrictive covenants is that
A) borrowers may find loopholes that make the covenants ineffective. B) they are costly to monitor and enforce. C) too many resources may be devoted to monitoring and enforcing them, as debtholders duplicate others' monitoring and enforcement efforts. D) all of the above. E) only A and B of the above.
Checking accounts that earn interest (such as NOW accounts) were not available until ________
A) 1962 B) 1972 C) 1982 D) 1992
What is the most important duty of a firm's financial officer?
A) to ensure that the firm has enough cash on hand to meet its commitments at any given time B) to decide how to pay for investments C) to manage working capital D) to make investment decisions