Why Is the Distinction Between Employment and an Independent Contract

question 3

Multiple Choice

Why is the distinction between employment and an independent contract important?

• A) An independent contractor cannot be sure that he will be paid.
• B) An employee has the right to wages.
• C) An employee can bind the employer in a contract he enters into on behalf of the employer.
• D) An employer may be held responsible for torts committed by the employee.
• E) Employees can withdraw their services.

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Definitions:

Organizational Morale

The collective attitudes, satisfaction, and overall outlook of employees within an organization towards their work and workplace.

Big Project

A large and complex undertaking involving considerable resources, time, and effort to complete.

Cash Burn Rates

The speed at which a company spends its cash reserves, especially common in startups to gauge the time they can operate before needing more funding.

Rapid Growth

refers to a phase where a company or economy experiences an unusually fast increase in its size, revenue, or market.