Explain Why the Distinction Between an Employee and an Independent

question 31

Essay

Explain why the distinction between an employee and an independent contractor is important.

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Definitions:

Model Business Corporation Act

A model set of laws prepared by the Committee on Corporate Laws of the American Bar Association to standardize and provide a guideline for corporation law.

Small Corporations

Businesses incorporated under the laws of a state that have a limited number of shareholders and meet certain other criteria.

Benefit Corporation

A type of for-profit corporate entity that includes positive impact on society, workers, the community, and the environment in addition to profit as its legally defined goals.

Public Benefit

A positive impact or contribution to the wellbeing of the general public or community at large.