Which of the Following Is Not a Reason for a Business

question 13

Multiple Choice

Which of the following is not a reason for a business to prefer to hire an independent contractor rather than an employee?

• A)The independent contractor does not participate in company fringe benefits.
• B)The company does not have to pay FICA taxes on the amounts paid to the independent contractor.
• C)The company does not have to supply a workplace or tools to the independent contractor.
• D)The company only has to pay FUTA on the independent contractor's wages.

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Definitions:

Operating Segment

A component of a business that engages in business activities from which it may earn revenues and incur expenses, identifiable by distinct financial information.

Disclosure Guidelines

Regulations or standards that dictate the financial information a company must provide to stakeholders to ensure transparency and informed decision-making.

Operating Segment

A component of an enterprise, engaged in business activities from which it may earn revenues and incur expenses.

Consistency

An accounting principle that requires accounting methods and principles to be applied in the same manner from period to period unless a change is justified.