The _____ States That a Business Entity Does Not Itself

question 57

Multiple Choice

The _____ states that a business entity does not itself owe taxes on income; it only acts as a pass-through for its members to receive income.

• A) conduit theory
• B) estoppel theory
• C) entity theory
• D) concession theory
• E) aggregate theory

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Definitions:

Self-Chosen Principles

Personal rules or guidelines decided upon by an individual to guide their behavior and decisions.

The Law

A system of rules that are created and enforced through social or governmental institutions to regulate behavior.

Social Relationships

Connections or associations between two or more individuals, characterized by a level of emotional, social, or professional interaction.

Postconventional Moral Reasoning

A level of moral reasoning that recognizes the complexity of ethical decision-making and values principles above conformity to societal norms.