Which of the Following Would Be Considered Part of the Underground

question 140

Multiple Choice

Which of the following would be considered part of the underground economy?

• A)selling subway tokens
• B)tax avoidance
• C)deducting housing interest when figuring your income taxes
• D)sales of alcohol and cigarettes
• E)paying by credit card to avoid writing a check

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Definitions:

Proprietorships

Proprietorships are businesses owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.

Partnerships

A legal form of business operation between two or more individuals who share management and profits.

Shareholders

Individuals or entities that own one or more shares of stock in a public or private corporation, giving them partial ownership of the company.

Corporation

A legal entity formed under state or federal statutes that is distinct from its owners (shareholders), providing limited liability protection, ease of transferability of shares, and potential tax benefits.