How Might a Sole Proprietorship Have a Possible Tax Advantage

question 188

Multiple Choice

How might a sole proprietorship have a possible tax advantage?

• A) It does not have to make tax payments until the end of the year.
• B) It does not have to pay federal income taxes.
• C) It does not have to charge sales tax on its merchandise.
• D) It does not pay special state and federal taxes that corporations pay.
• E) It is subject to a form of double taxation.

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Reservoir

A storage space for fluids, often water, or a metaphorical term for a large supply or source of something.

Memory

The mental capacity or faculty of retaining and recalling past experiences, facts, and information.

Persona

The aspect of someone's character that is presented to or perceived by others, often seen as a social facade or role one plays in society.

Public Face

The persona an individual presents in social contexts, often conforming to societal norms or expectations.