The Profits of a Sole Proprietorship Are

question 88

Multiple Choice

The profits of a sole proprietorship are

• A)taxed twice.
• B)subject to a corporate tax.
• C)not taxed.
• D)exempt from taxation.
• E)treated as the owner's income.

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Definitions:

Vertical Merger

The combination of two or more companies that operate at different levels within the same supply chain or industry.

Consolidation

The joining of two or more organizations to form a new organization.

Economy-of-Scope

Economic efficiencies derived from variety, rather than volume, where producing a wider range of products can lead to lower average costs.

Economies of Scale

The cost advantage achieved when production becomes efficient, as the scale of the operation grows and the cost per unit of output decreases.