In a Sole Proprietorship, Profits Are ________

question 34

Multiple Choice

In a sole proprietorship, profits are ________.

• A) distributed to all partners equally
• B) taxed at the prevailing business rate
• C) taxed as the owner's personal income
• D) distributed to the partners according to their level of participation

---

Definitions:

Major Policy Decisions

Key strategic decisions made by a company's management or board of directors that affect the overall direction and policies of the organization.

Board of Directors

A group of individuals elected by the shareholders of a corporation to oversee the management and make major decisions affecting the company's policy and strategy.

Common Stockholders

Individuals or entities that own shares of common stock in a corporation, granting them voting rights and a share in the company's profits.

Minimum Dividends

The smallest amount of dividends a company decides to pay out to its shareholders, often based on agreements or policy.