Following the Ruling in Murray V

question 21

Multiple Choice

Following the ruling in Murray v. Principal Financial Group, Inc., a court would determine whether a worker is an employee or an independent contractor by:

• A) evaluating the hiring party's right to control the manner and means by which the work is done.
• B) applying the IRS 20-factor analysis.
• C) determining whether the worker is economically dependent on the business.
• D) applying a hybrid approach.

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Definitions:

Stockholders

Individuals or entities that own shares in a corporation, thus holding partial ownership of the company.

Current Assets

Refers to assets that a company expects to convert into cash within one year or one business cycle, whichever is longer.

Net Fixed Assets

The value of a company’s fixed assets minus any accumulated depreciation, representing the actual value of the company's fixed assets.

Owners' Equity

This is the residual interest in the assets of the entity after deducting liabilities, essentially representing the ownership interest of shareholders in a company.