What Factors Led to the Decline of the First Party

question 47

Essay

What factors led to the decline of the first party system?

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Definitions:

Sole Proprietorship

A business owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.

Unabated

Continuing without any reduction in intensity or strength.

Double Taxation

This refers to the phenomenon where income is taxed twice before it is finally received by the individual, commonly seen when corporate income is taxed at both the company and the shareholder levels when dividends are distributed.

Corporation

A legal entity that is separate from its owners, providing them with limited liability and the ability to raise capital through share issuance.