In a sole proprietorship,the profits earned by the business are:
A)taxed as income for the business,but are exempt from the personal income tax paid by the owner.
B)taxed at the lowest corporate rate.
C)the property of the owner,except for taxes owed to the government.
D)tax-free if the appropriate exemption is filed with the local government.

Question

Quizplus · Accepted Answer

In a sole proprietorship, the profits earned by the business are considered the property of the owner, meaning the owner is personally responsible for paying taxes on those profits. The business itself is not a separate entity for tax purposes, so the owner will report the profits as part of their personal income tax return. Therefore, choice C is the best answer.

In a Sole Proprietorship,the Profits Earned by the Business Are