Which One of the Following Statements Concerning a Sole Proprietorship

question 48

Multiple Choice

Which one of the following statements concerning a sole proprietorship is correct?

• A) A sole proprietorship is designed to protect the personal assets of the owner.
• B) The profits of a sole proprietorship are subject to double taxation.
• C) The owner of a sole proprietorship is personally responsible for all of the company's debts.
• D) There are very few sole proprietorships remaining in the U.S. today.
• E) A sole proprietorship is structured the same as a limited liability company.

Recognize the role and structure of the payroll tax withholding system.

Identify the responsibilities of employers and employees in the payroll tax process.

Understand the treatment of different types of payments and benefits in payroll taxes.

Grasp the implications of payroll tax withholding for employees with multiple income sources or employment statuses.

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Definitions:

Spontaneous Abortion

A natural loss of a pregnancy before the fetus can survive outside the womb, commonly known as a miscarriage.

In Vitro Fertilization

A medical procedure where an egg is fertilized by sperm outside the body, in a laboratory dish.

First-Trimester Screen

A prenatal test conducted in the first trimester to assess the risk of certain chromosomal abnormalities in a fetus.

Ultrasound Sonography

A diagnostic medical procedure that uses high-frequency sound waves to create images of the inside of the body, commonly used in pregnancy.