8
QuizMultiple Choice

Employment, Entrepreneurship, and Compensation

Question 8 • FL-2102373-Personal Finance and Money Management Honors

What is the difference between an employee and a contractor?

Answer
A
Employees receive a 1099 statement.
B
Contractors may choose when and where they work.
C
Employees are paid based on the project completed.
D
Contractors are paid a predetermined annual salary.

Explanation

Contractors generally have more control over when and where they work, although the details depend on their agreement with the client. Employees usually receive a W-2 tax form, are paid wages or a salary, and follow the employer’s schedule and direction. Thus, “Contractors may choose when and where they work” is the best answer; the other choices mix up typical employee and contractor arrangements.

AI-written and checked against the verified answer.

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