To Determine Whether a Worker Is an Employee or an Independent

question 37

Multiple Choice

To determine whether a worker is an employee or an independent contractor,the Internal Revenue Service (IRS) 20-factor analysis includes a consideration of whether:

• A) the worker was previously employed in the same industry.
• B) an employer is engaged in interstate commerce.
• C) an employer provides training to the worker.
• D) the worker is the member of a minority group.

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Definitions:

Round Lot

A standardized number of units of an asset or security, usually used as the normal trading unit in the stock market.

Clientele

Refers to the base of customers or clients who regularly do business with an establishment or who are served by an organization, professional, or agency.

Compromise Dividend Policy

An approach to dividend disbursement that attempts to balance the interests of shareholders preferring regular dividends with those favoring reinvestment of profits.

Positive Net Present Value

Indicates that the present value of future cash flows from an investment exceeds the initial investment cost, suggesting profitability.