5 Questions
How is the taxation system for businesses different from that of corporations?
Businesses are personally taxed on all income, while corporations are subject to corporate tax rates
What is the primary responsibility of a business owner in terms of debts incurred by the business?
The owner is responsible and liable for the debts incurred by the business
How does the business structure affect the taxation of the proprietor's income?
The proprietor is personally taxed on all income from the business
What distinguishes a corporation from a sole proprietorship in terms of legal status?
Corporations are separate legal entities, while sole proprietorships are not
What is the primary advantage of a corporation compared to sole proprietorships and partnerships?
Corporations provide limited liability for their owners/members
Test your knowledge of business ownership and liability with this quiz. Learn about the responsibilities and implications of having a business name and the liabilities that business owners may face.
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