What Factor Distinguishes an Employee from an Independent Contractor

question 6

Multiple Choice

What factor distinguishes an employee from an independent contractor?

• A)The amount of the pay
• B)Whether or not the company supervises and controls the work
• C)Whether or not the work is performed on company property
• D)Whether the individual chooses to be treated as an independent contractor

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Definitions:

Operations Participation

The involvement or engagement in the ongoing activities or processes of an organization, project, or system.

Articles of Organization

A document filed with a state governmental entity to legally establish a limited liability company (LLC).

Member-Managed

Describes a management structure in a limited liability company (LLC) where all members (owners) actively participate in the day-to-day operations and decision-making process.

Manager-Managed

A structure typically used in limited liability companies (LLCs) where the management is officially assigned to one or more managers rather than being directed by all members.