A sole proprietorship:A) provides limited financial liability for its ownerB) involves significant legal costs during the formation processC) has an unlimited lifeD) has its profits taxed as personal incomeE) can generally raise significant capital from non-owner sources

Question

Goon

Business

24 December, 21:40

A sole proprietorship:A) provides limited financial liability for its ownerB) involves significant legal costs during the formation processC) has an unlimited lifeD) has its profits taxed as personal incomeE) can generally raise significant capital from non-owner sources

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Answers (1)

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Charles · Answer 1

D. Has its profits taxed as personal income.

Explanation:

As a sole proprietor you must report all business income or losses on your personal income tax return; the business itself is not taxed separately.