Practice question
A company calls a technician an entrepreneur because the technician uses expensive equipment. Evidence shows the company purchased and controls the equipment, fixes all rates and methods, and leaves the technician no independent market or managerial opportunity. What is the sound economic-reality approach?
- Evaluate who actually invests, controls and bears enterprise opportunity and risk rather than the equipment’s price alone
- Expensive equipment conclusively proves worker investment regardless of ownership
- Every user of a costly tool is an independent contractor
- The company’s purchase automatically becomes the worker’s capital
- No inquiry beyond the word entrepreneur is permitted
Legal references
- Ditiangkin v. Lazada E-Services Philippines, Inc., G.R. No. 246892, September 21, 2022, MAIN decision: https://lawphil.net/judjuris/juri2022/sep2022/gr_246892_2022.html
- Ador v. T. Osada Logistics and Services, G.R. No. 265600, February 24, 2026, MAIN decision: https://lawphil.net/judjuris/juri2026/feb2026/gr_265600_2026.html
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