Which of the Following Factors Is Most Likely to Distinguish

question 42

Multiple Choice

Which of the following factors is most likely to distinguish employees from independent contractors?

• A)Whether or not consideration is given by the principal for the agent's performance
• B)The principal's right to control the manner and means of the agent's performance
• C)Whether the agent has authority to bind the principal by his actions
• D)The agent's personal liability for illegal actions taken on behalf of the principal

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Definitions:

Long-Term Debt/Stockholders' Equity

A financial ratio that measures a company's leverage by comparing its long-term debt to its stockholders' equity.

Current Liabilities

Current liabilities are short-term financial obligations that a company is expected to pay within one year.

Leased Assets

Items of property or equipment that a company or individual rents under a lease agreement, rather than owns outright.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of a business.