Who is considered an independent contractor?

Prepare for the Western Governors University (WGU) HRM5010 C202 Test. Utilize flashcards and multiple-choice questions with hints and explanations to ensure you are well-equipped for your exam!

An independent contractor is characterized primarily by the nature of their work arrangement, which allows them to provide services to clients with a significant degree of flexibility and autonomy. The key aspect of being an independent contractor is that while they may have defined outcomes or deliverables to achieve, the contractor generally has control over how they complete their work. This distinguishes them from traditional employees, who are typically managed and directed by their employers.

In the context of this question, the aspect of "controlled outcomes" highlights that independent contractors often agree to complete specific tasks or projects, yet they retain the ability to decide how to accomplish those tasks without being micromanaged. This autonomy includes choosing their methods of work, the tools they use, and potentially even their working hours, as opposed to employees who operate under employer guidance and a structured environment.

The other options represent characteristics associated with typical employees or organizations rather than independent contractors. For example, employees with full benefits, a business entity controlling work aspects, or a worker with guaranteed job security fundamentally differ from the nature of contracting — they imply a deeper level of integration and dependence on an employer, which is not present in independent contractor arrangements. Thus, the emphasis on controlled outcomes reflects the unique positioning of independent contractors in the workforce.

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