What Type of Test Is Used to Determine If an Independent

question 19

Multiple Choice

What type of test is used to determine if an independent contractor is financially dependent?

• A)right to control test
• B)safe harbor test
• C)economic reality test
• D)financial dependence test

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Definitions:

Agreement

A mutual understanding or arrangement between two or more parties, typically formalized in a contract or verbal commitment.

Acceptable

Considered satisfactory or adequate; meeting the required standards.

Risk-taking

The willingness to engage in actions that can lead to significant gains or losses, embracing the potential for failure as a path to success.

High Trust

A condition or environment in which individuals or parties have a strong belief in the reliability, integrity, and competence of each other.