A company is a legal entity and, as such, has an additional expense it is required to recognise in its income statement that sole traders and partnerships do not have. This additional expense is for:

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Companies are subject to income tax on their profits, which is an expense that sole traders and partnerships do not face in the same way, as the income from those business types is taxed as personal income of the owners.

A Company Is a Legal Entity And, as Such, Has