Which of the Following Is a Reason a Person Would

question 70

Multiple Choice

Which of the following is a reason a person would prefer to be an independent contractor?

• A)An independent contractor pays only 7.65 percent FICA tax.
• B)An independent contractor can deduct expenses directly from business income.
• C)An independent contractor can deduct his or her health insurance directly from business income.
• D)An independent contractor can always participate in the retirement plan of the business for which he or she is performing work.

---

Definitions:

Moral Hazard

a situation in which an individual or entity is more likely to take risks because they won't bear the full consequences of their actions, often due to asymmetric information or insurance.

Tuition

The fee charged for instruction or education, often by a college or university.

Moral Hazard

The situation where one party is likely to take risks because the negative consequences of the risk will fall on another party.

All-You-Can-Eat Buffets

Dining establishments that offer customers unlimited food for a single fixed price, promoting consumption without restriction.