Mastering Business Income and Loss

• Income earned from the operation of a business (correct)
• Income earned from a salary
• Income earned from rental properties
• Income earned from investments

• Expenses incurred for rental properties
• Expenses incurred for investments
• Expenses incurred for personal use
• Expenses incurred in the ordinary course of business (correct)

• Sole proprietorships/partnerships are taxed on their net income, while corporations are taxed on their taxable income (correct)
• Sole proprietorships/partnerships are not taxed on their income, while corporations are taxed on their net income
• Sole proprietorships/partnerships are taxed on their gross income, while corporations are not taxed on their income
• Sole proprietorships/partnerships are taxed on their taxable income, while corporations are taxed on their gross income

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