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Ahmed, who is very knowledgeable regarding computers, agrees to purchase computers for Khaled's business. Ahmed is retained at Khaled’s business for that purpose only, he is paid a set rate for the job, and Khaled exercised no control over the manner in which Ahmed did his work. Ahmed purchased computers from HP Computers’ company without any mention of Khaled. The computers worked well and were not defective in any way. Unfortunately, Khaled did not pay HP Computers on a timely basis. Ahmed, therefore, paid HP Computers out of his own pocket because he wanted to be able to do business with HP in the future and also because his name was on the invoice. Ahmed asked Khaled for reimbursement, but Khaled refused, claiming that if Ahmed had only waited, HP Computer might have agreed to take less. 1- Explain Ahmed’s status in regards to his employment with Khaled? 2- Does Ahmed have the right of reimbursement from Khaled? 3- Did Ahmed have any legal liability to HP Computers? Why? 4- At the same scenario, assume that Ahmed was an employee at Khaled’s company. What type of principal Khaled could be?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91601027

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