Which of the Following Forms of Organization Is a Compromise

question 15

Multiple Choice

Which of the following forms of organization is a compromise between starting one's own business as an entrepreneur and working for someone else as an employee?

• A)limited liability company
• B)sole proprietorship
• C)close corporation
• D)franchise

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Definitions:

Proportional Tax

A tax system where the tax rate remains constant regardless of the amount subject to taxation.

Regressive Tax

A tax system wherein the tax rate decreases as the taxable amount increases, placing a higher burden on lower-income earners.

Sales Tax

A tax on the value of goods sold.

Wealth Tax

A tax on the wealth of an individual.