The earnings of a sole proprietorship are ________.
A) combined with the personal income of the proprietor
B) not combined with the proprietor's personal income
C) subject to double taxation
D) handled similarly to that of a corporation

Question

Quizplus · Accepted Answer

In a sole proprietorship, the business income is not taxed separately from the personal income of the sole proprietor. Instead, the earnings of the business are combined with the personal income of the proprietor and taxed accordingly. Therefore, choice A is the correct answer. Choices B, C, and D are incorrect.

The Earnings of a Sole Proprietorship Are ________