Maria Is Creating a New Business and She's Worried About

question 24

Multiple Choice

Maria is creating a new business and she's worried about her workers committing torts while on the job.Because of this,she is debating between independent contractors and employees.You tell her that

• A)employees are less risky because you can control their wages.
• B)independent contractors have no obligation to work because she won't control their hours.
• C)vicarious liability always applies to both,so it doesn't matter.
• D)she shouldn't get insurance because if she doesn't she may not have to compensate the wronged person completely.
• E)the safest thing to do is to get liability insurance and contract independent workers.

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Definitions:

Matured

Used to describe financial instruments or investments that have reached their due date for payment or realization.

Investment

Allocation of resources, usually money, with the expectation of generating an income or profit.

Income Tax Overpayment

A situation where an individual or entity has paid more income tax to the government than was actually owed.

Canada Revenue Agency

The federal agency responsible for administering tax laws and various social and economic benefit and incentive programs delivered through the tax system for the Government of Canada.