Andrew Has Been Hired to Do Some Work for Rossi

question 37

Essay

Andrew has been hired to do some work for Rossi Enterprises.What factors would a court consider in determining if Andrew is an employee or an independent contractor? Why does the designation matter?

---

Definitions:

Retained Earnings

The portion of net income that is retained by the corporation rather than distributed to its owners as dividends.

Base Year

A specific year or period selected as a reference point for comparison with subsequent years or periods in financial and economic analyses.

Net Income

The amount of earnings left after all expenses, including taxes and interest, have been deducted from total revenue; it represents the profit a company makes.

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its current liabilities with its quick assets.