Which of the following statements is true of a principal-independent contractor relationship?

Question

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In a principal-independent contractor relationship, the principal can authorize the independent contractor to enter into contracts on their behalf, and the principal is bound by those authorized contracts. However, the independent contractor remains an independent entity and is not an employee of the principal. Option B is incorrect because principals can authorize independent contractors. Option C is incorrect because independent contractors are not employees of the principal. Option D is incorrect because principals can directly hire independent contractors.

Which of the Following Statements Is True of a Principal-Independent