Indicate Whether Each of the Following Statements Is True or False

question 152

Short Answer

Indicate whether each of the following statements is true or false.
_____ a) Double taxation refers to the fact that both a partnership and its partners must pay income tax on the earnings of the partnership.
_____ b) A sole proprietorship is an accounting entity separate from its owner.
_____ c) Limited liability is a benefit to both corporations and partnerships, but not to sole proprietorships.
_____ d) Unlike a partnership, a corporation is not terminated when a major stockholder withdraws his or her investment.
_____ e) Corporations are, generally, subject to fewer governmental regulations than sole proprietorships.

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Definitions:

Working Poor

Individuals who have employment but whose earnings are not sufficient to meet the minimum living standards.

Economic Support

Financial or material assistance provided to individuals, families, or communities to ensure their basic needs are met or to support economic development.

Middle Class

Describes a socio-economic group that falls between the working class and upper class, often characterized by moderate incomes, education levels, and occupations.

Upper Class

A social group at the top of a societal hierarchy which possesses more wealth, power, and prestige than other classes.