Future Business Leaders of America (FBLA) Business Law Practice Exam

Who is defined as a person who works independently to perform a specific task using their own tools?

1. Employee

2. Independent contractor

3. Subcontractor

4. Franchisee

The correct answer is: Independent contractor

The definition of a person who works independently to perform a specific task using their own tools aligns perfectly with the characteristics of an independent contractor. An independent contractor operates as a separate business entity and is not subject to the same control and direction as an employee. They typically enter into a contractual agreement to complete a specific job or project and have the autonomy to use their own methods and tools to achieve the desired outcome. Independent contractors are differentiated from employees in that they retain significant control over how they perform their work. They also have the responsibility for their own expenses, tax obligations, and sometimes for providing their benefits, unlike employees who are usually provided tools and resources by their employers. The other options represent different business relationships and structures. An employee works under the direction of an employer and typically uses employer-provided tools, while a subcontractor usually works under a contractor to fulfill part of a contract and may not operate completely independently. A franchisee, on the other hand, is a business person who operates a franchise, which requires adherence to specific rules set by the franchisor, again distinguishing them from the independent contractor model.