How Might a Sole Trader Have a Possible Tax Advantage

question 135

Multiple Choice

How might a sole trader have a possible tax advantage?

• A) It does not have to make tax payments until the end of the year.
• B) It does not have to pay federal income taxes.
• C) It does not have to charge sales tax on its merchandise.
• D) It does not pay special state and federal taxes that corporations pay.
• E) It is subject to a form of double taxation.

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Definitions:

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A projective psychological test that uses ambiguous pictures to elicit stories from individuals, revealing their underlying motives, feelings, and attitudes.

Achievement Motivation

The desire to accomplish and excel in tasks through persistence and effort, often driven by an individual's goals and aspirations.

Objective, Multiple Choice

A type of question or assessment method that provides several potential answers, among which only one is correct, emphasizing impartial judgment.

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A method of statement presentation that asks the responder to classify the statement as either true or false.