Sole Proprietorships Are the Most Common Form of Business Ownership

question 51

Essay

Sole proprietorships are the most common form of business ownership.What advantages explain the popularity of the sole proprietorship?

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Definitions:

Fiscal Year-End

The last day of a company's accounting period, which is used for financial reporting and tax purposes, and can vary between organizations.

Automatic Extension

A provision allowing taxpayers to automatically extend their deadline for submitting tax returns or other required documents, without needing to provide a reason.

Return

A financial document summarizing an entity's income, deductions, and taxes owed over a specific period, often annually.

Subchapter S Election

A tax election made by small businesses to be taxed as a pass-through entity, avoiding double taxation.