Law Society of Ontario (LSO) Paralegal Practice Exam

What term describes the worker's responsibility for investment and management in the context of independent contracting?

1. Dependent responsibility

2. Business autonomy

3. Self-management

4. Financial independence

The correct answer is: Business autonomy

The term "business autonomy" aptly describes the worker's responsibility for investment and management within the context of independent contracting. This concept emphasizes that independent contractors operate their own businesses and thus hold the fundamental responsibility for their operational decisions, including how their business is structured, managed, and financed. Business autonomy reflects the independence contractors have in making strategic choices and executing responsibilities, which can involve financial investments, marketing, and managing client relationships. This autonomy stands in contrast to traditional employment relationships, where employers provide directives and assume responsibilities for management and investment. While terms like "financial independence" and "self-management" touch upon related themes, they do not fully capture the broader scope of decision-making and investment responsibilities that independent contractors possess. Dependent responsibility would imply a level of oversight or control that is not characteristic of independent contracting relationships. Thus, business autonomy is the most fitting term to describe the agency and accountability contractors have over their professional endeavors.