What is the difference between employee status and independent-contractor status? 

Which form of employment relationship would be more advantageous to Newmark? Why should employers be cautious when designating workers as independent contractors? APC, Inc., is a venture capital firm that invests in new businesses to help them grow. Wyatt Newmark owns and serves as a chef at “Earp’s,” a restaurant with a Western design that he operates as a sole proprietorship. Newmark has five employees at his restaurant—three servers, another chef, and a janitor. Newmark has had great success and hopes to expand or franchise the business. Newmark, who has not even retained an attorney for his small business, has approached APC for an investment. Using the information presented in the chapter, answer the above question.