What Are the Advantages of Classifying a Worker as a Contractor

question 47

Multiple Choice

What are the advantages of classifying a worker as a contractor to the organization?

• A)No relationship to manage and won't have to pay benefits.
• B)Won't have to pay benefits and less government interference.
• C)Won't have to pay benefits and won't have to pay payroll taxes.
• D)No relationship to manage and won't have to pay payroll taxes.
• E)Less government interference and won't have to pay payroll taxes.

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Definitions:

Criminally Liable

Being legally responsible for a crime, subject to criminal prosecution, and potentially, punishment.

Mens Rea

A legal principle that considers the intent of the mind to commit a crime; essential for establishing criminal liability.

Independent Director Control

A theory of corporate control that states that the best way to make certain that corporate decisions are made in the best interests of the corporation is to make sure that the decision makers themselves are not affected by the decisions.

Corporate Democracy

The system or practices within a corporation that allow for the participation and voting rights of shareholders in company decision-making processes.