Which of the Following Statements Concerning a Comparison Between Employees

question 163

Multiple Choice

Which of the following statements concerning a comparison between employees and independent contractors is most accurate?

• A)Employees and independent contractors deduct business expenses as miscellaneous itemized deductions.
• B)While employees are typically eligible for nontaxable fringe benefits from employers, independent contractors are not.
• C)Employers are required to withhold either FICA or self-employment taxes from compensation paid to employees and compensation paid to independent contractors.
• D)Employers typically withhold federal income taxes from compensation paid to employees and to independent contractors.

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Definitions:

Market Development

Involves expanding the potential market through new users or new uses for a product, aiming at increasing the total market for the product.

Newly Developed Products

Refers to items that have been brought to the market recently, showcasing innovative features or advancements not previously seen.

Growth Strategy

A plan of action aimed at increasing the size and scope of a business, usually through expanding operations, entering new markets, or increasing market share.

Insurance Agent

A professional who sells, solicits, or negotiates insurance policies on behalf of an insurance company.