What best describes an employee?

What best describes an employee?

• A. Owns a business venture
• B. Works for someone else
• C. Takes primary financial responsibility for the risk of the business venture
• D. Is responsible for contributing equity to the business

Answer: (B)

The description of an employee as someone who works for someone else is accurate because an employee is defined by their role within an organization where they perform tasks and duties in exchange for compensation, such as wages or a salary. Employees are integral to the functioning of a business, providing their skills and labor to fulfill the company's objectives, while not holding ownership or primary financial risks associated with the enterprise. In contrast, the other descriptions pertain to different roles within a business context. Those who own a business venture assume entrepreneurship roles, taking on both the rewards and risks of ownership. Likewise, being financially responsible for business risks or contributing equity refers to ownership or partnership roles rather than that of an employee. Thus, recognizing an employee's position as one who works for someone else encapsulates their relationship within a business structure accurately.

The description of an employee as someone who works for someone else is accurate because an employee is defined by their role within an organization where they perform tasks and duties in exchange for compensation, such as wages or a salary. Employees are integral to the functioning of a business, providing their skills and labor to fulfill the company's objectives, while not holding ownership or primary financial risks associated with the enterprise.

In contrast, the other descriptions pertain to different roles within a business context. Those who own a business venture assume entrepreneurship roles, taking on both the rewards and risks of ownership. Likewise, being financially responsible for business risks or contributing equity refers to ownership or partnership roles rather than that of an employee. Thus, recognizing an employee's position as one who works for someone else encapsulates their relationship within a business structure accurately.