Internal Revenue Service (IRS) Guidelines Defining an Independent Contractor State

question 7

Multiple Choice

Internal Revenue Service (IRS) guidelines defining an independent contractor state that _______________________.

• A) the contractor must perform all work away from the contracting organization's facility
• B) the using organization decides whether a particular service provider is an employee or an independent contractor
• C) the independent contractor must be paid as a supplier rather than as an employee
• D) the using organization may provide the materials and equipment used by the independent contractor

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Definitions:

Competitive Price

A pricing strategy where the price of a product or service is set based on the prices charged by competitors.

Tax

A compulsory financial charge or levy imposed by a government on individuals or businesses to fund public expenditures.

External Costs

Costs that are not borne by the parties involved in a transaction but rather by third parties or society as a whole.

Efficient Solution

An outcome wherein resources are allocated in the most effective way, maximizing benefits while minimizing costs or wastes.