How Might a Sole Proprietorship Have a Possible Tax Advantage

question 188

Multiple Choice

How might a sole proprietorship 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:

Human Beings

Members of the species Homo sapiens, characterized by their ability to think critically, communicate through complex language, and create and manipulate their environment.

Formal Operations

The final stage in Piaget's theory of cognitive development, characterized by the ability to think abstractly, reason logically, and manage problems systematically.

Cognitive Development

The process of growth and change in intellectual/mental abilities such as thinking, reasoning, and understanding over the lifespan.

Jean Piaget

A Swiss psychologist known for his pioneering work in child development, particularly his theory of cognitive development.