Which of the Following Is a Reason a Person Would

question 7

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 participate in the retirement plan of the business for which he or she is performing work.

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Definitions:

Milk Production

The process of producing milk, mainly from dairy cows, for human consumption.

Price Elasticity

Quantifying the relationship between price changes and demand response for a product.

Total Expenditures

The sum amount of spending on goods and services by individuals, businesses, or the government within a specific period.

Flash Floods

Rapid flooding of geomorphologic low-lying areas, caused by heavy rain or other sudden water release.