Charlie is a plumber who uses his own tools to work. He is generally hired for specific jobs for short durations. He receives lump sums after completing these jobs. Which of the following statements is true of this scenario?

Question

Quizplus · Accepted Answer

Charlie's use of his own tools and receipt of lump sum payments after completing specific jobs indicate that he is an independent contractor. He is not controlled by his employer and is not in an agency relationship where he acts on behalf of someone else (the principal). There is no indication that Charlie is restricted to working for only one employer at a time.

Charlie Is a Plumber Who Uses His Own Tools to Work