Randolph Scott Operates a Business as a Sole Proprietorship

question 99

Multiple Choice

Randolph Scott operates a business as a sole proprietorship.This year his net profit was $10,570.For tax purposes this amount should be reported on:

• A)Schedule C,Statement of Profit or Loss from Business
• B)The first page of Form 1040 as other income
• C)A separate tax return prepared for the business operation
• D)Schedule E,Statement of Rent and Royalty Income

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Definitions:

Customer Demand

The total amount of a product or service that consumers are willing to purchase at a given price level within a specific time period.

Just-In-Time (JIT)

A management strategy that aligns raw-material orders from suppliers directly with production schedules to reduce inventory costs and increase efficiency.

Production Capacity

The maximum output that a business can produce in a given period with the available resources.

Process Reengineering

The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance.