The Net Income of a Sole Proprietorship Should Compensate the Owner

question 5

Multiple Choice

The net income of a sole proprietorship should compensate the owner for all of the following except:

• A)Personal service.
• B)The income taxes paid by the owner.
• C)Capital invested by the owner.
• D)The risk taken by the owner.

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Definitions:

Social Environment

The direct physical and social environment where individuals reside or where an event or development takes place.

Self-Respect

The regard for one's own well-being and dignity, often seen as a crucial component of psychological health and personal integrity.

Productive Activity

Any task or action that contributes positively to the economic, social, or psychological well-being of an individual or community.

Self-Respect

The regard for one’s own standing or position, reflected in behavior showing that one values their own dignity and worth.