An Entity That Seeks to Earn a Profit by Providing

question 31

Multiple Choice

An entity that seeks to earn a profit by providing a good or service is known as a(n)

• A) industry.
• B) corporation.
• C) business.
• D) service.

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Definitions:

FUTA Tax

Federal Unemployment Tax Act tax, a payroll tax paid by employers to fund state workforce agencies and unemployment insurance for workers who have lost their jobs.

State Unemployment Taxes

Taxes imposed by state governments on businesses based on the amount of wages paid to employees, used to fund unemployment compensation benefits for workers who have lost their jobs.

Withholding Allowances

Claims made on a W-4 form that determine the amount of an employee’s income not subject to federal income tax withholding.

Percentage Method

A way to calculate taxes or other financial figures by applying a specific percentage rate to a base amount.