Which of the Following Is a Similarity Between a Sole

question 126

Multiple Choice

Which of the following is a similarity between a sole proprietorship and a partnership?

• A) Both their earnings are untouched by the Internal Revenue Service.
• B) Both offer limited liability to the owners.
• C) Both are subject to double taxation.
• D) Both have stronger financial bases than a limited liability company.

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Definitions:

Non-Controlling Interest

A share in the equity of a subsidiary not owned by the parent company, representing outside ownership interest in the subsidiary.

Canadian GAAP

Generally Accepted Accounting Principles in Canada, a set of accounting standards and procedures used to compile financial statements in Canada.

Operating Segments

Components of a business from which separate financial information is available and is evaluated regularly by the company’s decision makers.

US GAAP

United States Generally Accepted Accounting Principles, a common set of accounting principles, standards, and procedures that companies and their accountants must follow when they compile their financial statements.