In Which of the Following Do Profits from a Business

question 58

Multiple Choice

In which of the following do profits from a business go straight to the owners, who then report their share of profits (or losses) in the business on their individual tax returns?

• A) corporate dual taxation
• B) pass-through taxation
• C) single taxation
• D) profit rate taxation

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Definitions:

Monthly Payments

Payments that are due every month, as in the case of a loan or lease.

Withdrawals

Acts of removing funds from a savings or investment account, which can impact the account's growth or income-producing ability.

Compounded Quarterly

The calculation of interest on the principal amount and any accumulated interest every three months.

Quarterly Withdrawals

The act of taking money out of an account or investment four times a year.