The Money a Consumer Has Left After Paying Taxes to Use

question 257

Multiple Choice

The money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation is referred to as

• A) net income.
• B) disposable income.
• C) discretionary income.
• D) household income.
• E) gross income.

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Definitions:

Sole Proprietorship

Business ownership in which there is no legal distinction between the sole proprietor’s status as an individual and his or her status as a business owner.

Partnership

A legal business structure where two or more individuals agree to share the profits and losses of a business.

Corporation

Legal organization with assets and liabilities separate from those of its owner(s).

Franchise

A licensing agreement where a franchisor allows a franchisee to use its brand, products, and operating methods.