A Particular Organization Wants to Explore the Potential for Converting

question 11

Multiple Choice

A particular organization wants to explore the potential for converting many of their employees into contractors. Which of the following characteristics would potentially lead the Canada Revenue Agency to reject this change in classification?

• A) The worker has the ability to refuse or accept work from the organization.
• B) The company directs how and where the work should be completed.
• C) The worker has control over who actually completes the work.
• D) The worker can choose the manner in which the work is completed.

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Definitions:

Socially Optimal

A condition or point at which the total benefits to society are maximized, often considered in the context of production or distribution of goods and services.

Negative Externality

A cost that affects a party who did not choose to incur that cost, often seen in environmental pollution where the public bears the cost not reflected in the market price.

Lawn Mowing

Lawn mowing refers to the act of cutting or trimming the grass in a lawn to maintain its appearance and health, often performed as a routine landscaping activity.

External Costs

Costs of a transaction that affect people other than the buyer or seller and are not reflected in the prices.