How Does the Owner of a Sole Proprietorship Relate to the Business

question 117

Multiple Choice

How does the owner of a sole proprietorship relate to the business?

• A)The owner and the business are separate legal entities.
• B)The owner and the business are not separate legal entities.
• C)The assets of the owner are considered separate from the assets of the business.
• D)None of these describe the legal relationship of the owner to the business.

---

Definitions:

Unemployment Compensation

Financial payments provided to individuals who have lost their job and meet certain eligibility requirements.

Federal Income Tax

is the tax levied by the national government on individuals' and entities' annual earnings, varying based on income levels and filing status.

Withholding

This refers to the amount of an employee's pay withheld by the employer and sent directly to the government as partial payment of income tax.

Exemptions

Deductions allowed by law to reduce the amount of income that is subject to taxation.