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Question Practice

Which statement is true about the taxation of a sole proprietorship?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 11
Business Studies
Business Studies
Forms of Business Organisation
Question Bank

Which statement is true about ...

Single Answer MCQ
Q-00064387

Which statement is true about the taxation of a sole proprietorship?

1

It is taxed as a corporation.

2

The owner pays personal income tax on business profits.

3

No taxes are required.

4

It faces double taxation.

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What is a defining characteristic of a sole proprietorship?

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Which of the following is a disadvantage of a sole proprietorship?

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Q3.

In a sole proprietorship, the profits are:

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Q4.

Which feature of a sole proprietorship makes it easier to form compared to other business types?

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