Which of These Entities Is Taxed Directly on Its Income

question 87

Multiple Choice

Which of these entities is taxed directly on its income?

• A)Limited Liability Company
• B)C Corporation
• C)Partnership
• D)Sole Proprietorship

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Definitions:

Income Statement

A financial report that shows a company's revenues, expenses, and profits over a specific period, providing insight into its operational efficiency.

Received Utility Bill

An invoice received for the consumption of utility services such as electricity, water, or gas.

Increase Liabilities

This occurs when a company incurs more debts or obligations, leading to an uptick in the claims against its assets.

Borrowed Money

Funds that have been obtained through loans that are expected to be repaid with interest.