Question

Elroy is the sole proprietor of a gift shop in a small shopping center. Because he is a sole proprietor, any profit Elroy's business earns is: A)totally tax-free. B)taxed only as Elroy's personal income. C)taxed twice, once as business income, then again as Elroy's personal income. D)taxed only if and when it is distributed to investors.

Answer 1

Answer:

B)taxed only as Elroy's personal income.

Explanation:

A sole proprietorship is owned by one person known as the sole proprietor. His profits are taxed once as personal income. A sole proprietorship doesn't have investors.

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