Which of the Following Best Highlights the Distinction Between Employees

question 57

Multiple Choice

Which of the following best highlights the distinction between employees and independent contractors?

• A)Employees owe a higher degree of loyalty.
• B)Independent contractors can quit whenever they want without consequence.
• C)Employees need not remit some of their pay to workers' compensation.
• D)Independent contractors do not need to pay income tax.
• E)Independent contractors do not need to follow directions from the entity they contracted with.

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Definitions:

Gratuitous Bailment

A legal relationship where one party, the bailor, temporarily transfers possession of an item to another, the bailee, without expectation of payment or benefit.

Bailee's Lien

The right of a bailee to retain possession of a bailor's property as security for unpaid charges related to the property.

Bailor

A person who entrusts their property into the care of another, known as the bailee, for a particular purpose.

Personal Property

Assets or belongings that are not fixed permanently to one location, such as furniture, vehicles, and electronics, distinct from real property like land or buildings.