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A Large Number of Businesses Are Organized as Sole Proprietorships

question 190

True/False

A large number of businesses are organized as sole proprietorships because it is easy for them to acquire large sums of financing.


Definitions:

Tax Rates

Tax rates refer to the percentage at which an individual or corporation is taxed on their income or property.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, reflecting the percentage of additional income that is paid in taxes.

Average Tax Rate

The ratio of the total amount of taxes paid to the total income, showing the share of income that goes to taxes.

Income Tax System

The framework by which governments collect a percentage of income from individuals and businesses as tax, which varies according to earnings levels.

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