To evaluate: The reasons sole proprietorships and partnerships pay relatively lower taxes than other types of business organizations.
Explanation of Solution
Taxes on a sole proprietorship are typically minimal, as a company owner only pays taxes on income. As with sole proprietorship, taxes under
The main difference between partnership and sole ownership is the number of owners the company has. "Sole" means one and only one person has a sole proprietorship. On the contrary, establishing collaboration involves more than two because this type of company has at least two members.
Since other businesses are subject to double
Therefore, they pay lesser taxes than other business organizations.
Introduction: In today's corporate world, there are various types of business organizations. The quality of any undertaking depends on its structure. Single proprietorship, association, and company are major kind business organizations.
Chapter 8 Solutions
Economics Today and Tomorrow, Student Edition
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