When Determining Whether or Not a Person Is an Employee

question 61

Multiple Choice

When determining whether or not a person is an employee or an independent contractor for purposes of agency law, what is the most important factor?

• A) An employee is subject to the control of the employer.
• B) Generally, all working people are considered to be agents or employees of an employer.
• C) Whether the person has a close personal relationship with the employer.
• D) An independent contract is under the employer's control.
• E) Independent contractors fall under the employer-employee relationship for purposes of agency law.

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Definitions:

Assessment Value

The dollar value assigned to a property for purposes of measuring applicable taxes or insurance premiums.

Investment Company

A business structure, such as a corporation or trust, dedicated to managing the combined investments of various investors in financial markets.

Front-end Loads

Charges or fees that are paid by investors at the time of purchasing shares of a mutual fund or an investment trust.

Low-load Mutual Funds

Mutual funds that charge a lower sales load (commission) compared to typical sales charges, making them more cost-effective for investors.