In an effort to increase sales, Delta Ltd hired Chandra, a marketing expert. Because Delta was concerned about being held responsible for any torts that Chandra might commit, it arranged to hire her as an independent contractor, rather than an employee. It has employed a form of risk management known as

Question

Quizplus · Accepted Answer

Risk shifting involves transferring the potential liability for torts from the company to the independent contractor, as the company is less likely to be held responsible for the contractor's actions.

In an Effort to Increase Sales, Delta Ltd Hired Chandra