When you are a small business owner you will find a way to save money. When you hire somebody from an agency or direct hire the insurance cost, hourly rate and overtime can be a huge expense. In this situation when I hired few of my friends to help me out with the business by working for me but no benefits and I would pay them a flat pay. When one friend orders way too much from a vendor and this friend is not an employee am I liable to pay the improper order?The answer to this is YES I am liable to pay for the mistake even though I am not the one who order the items but I am the owner. Even though my friend was acting on behalf of me (consent) and he was actingas the agent who is employed for me. Basically, I am liable for any acts that my friends perform during my business hours.