Which of the Following Business Organizational Form(s) Create(s) a Tax

question 10

Multiple Choice

Which of the following business organizational form(s) create(s) a tax liability on income at the personal income tax rate?

• A) Sole proprietorship
• B) Partnership
• C) Corporation
• D) Both A and B

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Definitions:

Substitute

An alternative or replacement for something else, often found or used when the original is unavailable or unsuitable.

Extend

To prolong the duration of something or to reach out in space or time.

Course of Dealing

A pattern of actions between parties that establishes a common basis for understanding in future transactions.

Usage of Trade

Established customs and practices in a particular industry that are considered binding or enforceable in business transactions.