Elroy is the sole proprietor of a gift shop in a small shopping centre.Because he is a sole proprietor,any profit Elroy's business earns is:

Question

Quizplus · Accepted Answer

As a sole proprietor, Elroy and his business are considered one entity for tax purposes, and any profit earned by the business is reported on Elroy's personal tax return and taxed as personal income. The profit is not taxed twice and there are no investors to distribute profits to, making option C the correct choice.

Elroy Is the Sole Proprietor of a Gift Shop in a Small