Final answer:
The term 'proprietor' refers to the owner of a sole proprietorship and not to a person contracting with an independent contractor. A proprietor has multiple responsibilities including managing the business and handling finances, and this term is falsely used in the context of contracting with independent contractors.
Step-by-step explanation:
The statement that the person contracting with an independent contractor and receiving the benefit of his/her service is called a proprietor is false. A proprietor refers to an individual who owns and runs a business, which can be a sole proprietorship, where the business is not a separate legal entity from the owner. The owner is fully responsible for all debts and liabilities as well as entitled to all profits. In terms of responsibilities, a proprietor must manage the business operations, hire and retain employees, and handle financial concerns. If we consider the context of a proprietary colony, the statement that proprietors have no responsibilities except to collect profits is also false, as they had various administrative and governance roles.