Business Ownership and Liability Quiz

Corporations are personally taxed on all income, while businesses are subject to corporate tax rates

Businesses and corporations are not taxed on their income

Both businesses and corporations are subject to the same taxation system

Businesses are personally taxed on all income, while corporations are subject to corporate tax rates (correct)

The owner is responsible and liable for the debts incurred by the business (correct)

The owner is responsible only for the initial debts incurred during business setup

The owner is responsible only if the business is a corporation

The owner is not responsible for any debts incurred by the business

The proprietor is not taxed on any income from the business

The proprietor is personally taxed on all income from the business (correct)

The business structure does not affect the taxation of the proprietor's income

The proprietor is subject to corporate tax rates on income from the business

<p>Corporations are separate legal entities, while sole proprietorships are not</p> Signup and view all the answers

<p>Corporations provide limited liability for their owners/members</p> Signup and view all the answers