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Match Each Term with the Correct Statement Below

question 38

Multiple Choice

Match each term with the correct statement below.
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Definitions:

Flow-Through Entity

A business entity where income flows directly to investors or owners, avoiding corporate income tax.

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Sole Proprietorship

A sole proprietorship is a type of unincorporated business owned and operated by one individual, with no distinction between the business and the owner for legal and tax purposes.

Partnership

A legal business relationship between two or more individuals who share management and profits or losses of the business.

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