What Type of Test Is Used to Determine If an Independent

question 33

Multiple Choice

What type of test is used to determine if an independent contractor is financially dependent?

• A)right to control
• B)safe harbor
• C)economic reality
• D)financial dependence

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Definitions:

Business Activity

Engagements or actions undertaken by individuals or companies to produce, sell, or distribute goods or services in pursuit of profits.

Laws

The system of rules that are recognized as regulating the actions of a country's or community's members and enforced by the imposition of penalties.

Forces of Competition

Forces of competition pertain to the external pressures in a marketplace from other firms that affect a company's ability to compete, often described in Porter’s Five Forces model.

Industry

A group of companies that operate in a specific sector of the economy, producing or supplying goods, services, or related technologies.