Javier Is the Sole Proprietor of a Golf Shop

question 178

Multiple Choice

Javier is the sole proprietor of a golf shop.Because he is a sole proprietor,any profit Javier's business earns is:

• A)Totally tax-free.
• B)Taxed only as Javier's personal income.
• C)Taxed twice,once as business income,then again as Javier's personal income.
• D)Taxed only if and when it is distributed to investors.

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Definitions:

Data Processing

The collection, manipulation, and processing of data to extract meaningful information or to produce a desired output.

Capital Structure Decision

The choice a company makes regarding the mix of debt and equity that it uses to finance its operations.

Net Working Capital

A financial metric that calculates the difference between a company's current assets and its current liabilities.