Business Fundamentals and Legal Responsibilities Quiz
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Questions and Answers

Which of the following best describes business?

  • The practice of making money by investing in stocks
  • The practice of making money by providing services
  • The practice of making money by producing and selling products (correct)
  • The practice of making money by gambling

    • What does it mean when a business structure does not allow for corporate tax rates?

  • The business owner is not required to pay any taxes
  • The business owner can choose to pay either personal or corporate tax rates
  • The business owner is exempt from paying any taxes
  • The business owner is responsible for paying taxes on all income (correct)

    • What is the main difference between corporations and sole proprietors/partnerships?

  • Corporations are not responsible for their debts
  • Corporations are not legally recognized entities
  • Corporations have higher tax rates than sole proprietors/partnerships
  • Corporations provide limited liability for their owners, while sole proprietors/partnerships do not (correct)

    • What happens if a business acquires debts?

    <p>Creditors can go after the owner's personal possessions</p> Signup and view all the answers

    How is the taxation system for businesses different from that of corporations?

    <p>Businesses are personally taxed on all income, while corporations have corporate tax rates</p> Signup and view all the answers

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