Agency formation and management perspectives

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Business Finance

Description

  • From a legal perspective, determine if it is easier for a manager to deal with an employee or an independent contractor. Provide an example or rationale for your answer.

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Explanation & Answer

My uncle as the manager of a small business, a local tools store, in many ways he would say the employees are the hardest part of running the business.  They require the most resources (money, time, patience) and it is a never-ending challenge to keep everyone happy and in sync.  He’s fortunate to have the best team ever in 15 years, but it is still tough as they have illness, stress and other distractions that impact their performance. He would rather deal with employees than independent contractors.  The employees have a vested interest in their job with the store and helping the store achieve its long-term goals.  They know the work will be available and the paycheck will be forthcoming.



Anonymous
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