Explain How Income Is Taxed in a Sole Proprietorship, a Partnership

question 26

Essay

Explain how income is taxed in a sole proprietorship, a partnership, and a C corporation.

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Definitions:

Unjust Enrichment

A windfall that one party to a contract stands to make at the expense of the other.

Collateral Contract

A separate contractual obligation that can stand alone, independent of the written contract.

Inferred Trust

A trust implied by law to work out justice between the parties, based on certain circumstances or conduct, as opposed to being established by explicit words.

Vicarious Performance

Performance by another designated person of the obligations under a contract rather than the actual contracting party.