The Primary Source of Wealth for Most Entrepreneurs Comes From

question 29

Multiple Choice

The primary source of wealth for most entrepreneurs comes from:

• A) interest on the income earned early in the life of the business.
• B) an increase in the value of the business asset over time.
• C) tax deductions against other sources of income enabled by owning a business.
• D) tax credits earned by starting a business.

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Definitions:

S Corporation

A specific kind of corporation in the U.S. that conforms to certain Internal Revenue Code criteria, which permits it to distribute income directly to its shareholders, thereby bypassing the double taxation issue.

Double Taxation

The imposition of two or more taxes on the same income, asset, or financial transaction, often seen in international business where income is taxed in both the source and the resident country.

Secured Bond

A bond backed by collateral to decrease the risk of default.

Due Process

A fundamental legal principle that ensures fair treatments and procedures are followed by the government before depriving a person of life, liberty, or property.