Question

Which of the following is an advantage of hiring help in a small business?
Question 1 options:

There is more pressure for the business to succeed.


There is an opportunity for the business to grow or expand because of increased production.


There are several additional costs associated with paying for help.


The owner will need to dedicate time to training the new worker.

Question 2 (1 point)
Which of the following statements is true?
Question 2 options:

A contractor's schedule is controlled by an employer.


Employees cost a business owner less than contractors.


A contractor develops a deeper understanding and commitment to the business.


There is no long-term commitment between a contractor and a business owner.

Question 3 (1 point)
Which of the following statements about employment is true?
Question 3 options:

To compare the cost of an employee and a contractor, just look at the hourly wage of each.


A part-time employee cannot work 40 hours in a week.


Part-time and full-time are not defined by law.


Employers must pay Social Security taxes for all employees and contractors.

Question 4 (1 point)
Which of the following lists identifies things that must be calculated into the true cost of an employee?
Question 4 options:

wages, employee age, social security, income tax


wages, Social Security, unemployment tax, workers' compensation, Medicare


tips, personal property tax, Medicare, workers' compensation, unemployment tax


income tax, Social Security, Medicare, unemployment tax


0 of 4 questions saved

Answer 1

Here are the correct answers with brief explanations:

Question 1 — Correct: "There is an opportunity for the business to grow or expand because of increased production."
Explanation: Hiring help increases capacity and can enable growth; the other choices are disadvantages.

Question 2 — Correct: "There is no long-term commitment between a contractor and a business owner."
Explanation: Independent contractors are typically engaged for specific projects and not tied by the same long-term employer commitments as employees.

Question 3 — Correct: "Part-time and full-time are not defined by law."
Explanation: There is no single universal federal definition that applies across all contexts—employers generally set classifications (specific laws may define hours for certain benefits, but broadly the terms are not fixed by one law).

Question 4 — Correct: "wages, Social Security, unemployment tax, workers' compensation, Medicare"
Explanation: The true cost of an employee includes wages plus employer-paid payroll taxes (Social Security and Medicare), unemployment taxes, and workers' compensation.