Which of the Following Statements Concerning the Client-Independent Contractor Relationship

question 4

Multiple Choice

Which of the following statements concerning the client-independent contractor relationship is false?

• A) A client may only accept or reject the final results of the work of an independent contractor.
• B) An independent contractor is entitled to all the fringe benefits offered to the client's employees.
• C) At the end of each tax year, a client issues a Form 1099 to an independent contractor reporting the compensation paid during the year.
• D) An independent contractor must pay self-employment taxes.

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Definitions:

Conflict

A disagreement, struggle, or clash between opposing parties resulting from differing needs, desires, or views.

Conflict

A situation or process where there is a clash of interests, values, actions, views, or directions.

Boundary

A boundary is a dividing line or a limit that defines the space, scope, or terms under which entities operate.

Yard

A unit of measurement equal to 3 feet or 0.9144 meters, often used in referencing the size of a parcel of land.