Corey Performs Services for Sophie

question 17

Multiple Choice

Corey performs services for Sophie. Which, if any, of the following factors indicate that Corey is an independent contractor, rather than an employee?

• A)Cory sets the work schedule.
• B)Sophie provides the tools used.
• C)Corey files a Form 2106 with his Form 1040.
• D)Corey is paid based on the time spent.
• E)None of the above.

---

Definitions:

Financial Leverage

Employing borrowed capital to enhance the potential profit from an investment, which magnifies both possible rewards and risks.

MM

MM, short for Modigliani and Miller, refers to a foundational theory in finance concerning the capital structure of companies and its impact on market value.

Financial Distress

A condition when a company cannot generate sufficient revenues or income, making it unable to meet its financial obligations.

Tax-Deductible

A tax-deductible expense is one that can be subtracted from gross income to arrive at taxable income, effectively reducing the overall amount of taxes owed.