BRC Partners Is a Consulting Firm

question 15

Multiple Choice

BRC Partners is a consulting firm. Sam and Arnie are analysts for BRC. Sam was hired as an employee and Arnie was hired as an independent contractor. They both work in the same BRC office under the same supervisor. They both must work Monday through Friday during standard business hours. Both are required to report to weekly staff meetings. Sam is paid a salary and the proper federal and state tax witholdings are made. Arnie does not receive benefits like retirement and health insurance and he is paid by the project with no federal and state withholdings. Arnie signed a contract that clearly stated he was an independent contractor and not an employee.

• A) BRC has properly classified Arnie as an independent contractor.
• B) BRC has improperly classified Arnie as an independent contractor.
• C) BRC has improperly classified Arnie as an independent contractor, however, its contract with Arnie is binding and BRC will have no liability under federal or state law for the misclassification.
• D) BRC has improperly classified Arnie as an independent contractor, however, its contract with Arnie is binding and BRC will have no liability under federal and state law for the misclassification, but Arnie will have liability under federal and state law.

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Definitions:

Political Behaviors

Actions taken within an organization that are aimed at acquiring, developing, and using power and other resources to obtain one's preferred outcomes.

Self-Promotion

Strategies and practices that individuals use to convey their skills, accomplishments, and overall worth to others, often for career advancement.

Reverse Integration

A strategy where a company integrates backwards in the supply chain, taking over some roles of its suppliers or distributors.

Political Behavior

Activities undertaken within an organization that are aimed at using power and influence to obtain personal or organizational goals.