Tennessee Real Estate Exam Practice Question
Licensee A works from home on commission splits; Licensee B works set office hours on salary plus bonus for relocations. Both are affiliated with ABC Realty. What is their employment status?
Correct Answer: B
Rationale: Licensee A operates independently, working from home and earning commission splits, which indicates a contractor status as they have control over their work schedule and methods. In contrast, Licensee B has set office hours and receives a salary plus bonuses, demonstrating characteristics of an employee, such as a defined work structure and benefits.
Option A incorrectly categorizes Licensee A as an employee, disregarding their independent work style. Option C misclassifies both as contractors, ignoring Licensee B's employee-like structure. Option D mistakenly identifies both as employees, overlooking Licensee A's independent contractor status.
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