Many business owners show low profits in their businesses intentionally to lower their tax bills.

Question

Quizplus · Accepted Answer

It is not uncommon for business owners to intentionally lower their profits to reduce their tax liability. This can be done through various means such as increasing expenses, adjusting pricing strategies, or utilizing tax deductions and credits. However, it is important to note that artificially lowering profits can also have other negative impacts such as reducing the value of the business and limiting access to financing.

Many Business Owners Show Low Profits in Their Businesses Intentionally