The proprietorship form of business organization
A)must have at least two owners in most states.
B)generally receives favorable tax treatment relative to a corporation.
C)combines the records of the business with the personal records of the owner.
D)is classified as a separate legal entity.

Question

Quizplus · Accepted Answer

Proprietorships generally receive favorable tax treatment because the income is only taxed once as personal income to the owner, unlike corporations which face double taxation.

The Proprietorship Form of Business Organization