Question

Which one of the following statements is correct? Both partnerships and corporations incur double taxation. Sole proprietorships and partnerships are taxed in a similar fashion. Partnerships are the most complicated type of business to form. Both partnerships and corporations have limited liability for general partners and shareholders. All types of business formations have limited lives.

Answer 1

Answer:

sole proprietorships and partnerships are taxed in a similar fashion

Explanation:

A tax can be regarded as compulsory financial charge, it can also be regarded as other type of levy that is been imposed on a taxpayer by a governmental organization so that funds needed to fund government spending as well as various public expenditures can be generated. This applies to sole proprietorship which is regarded as , is a type of enterprise that is been owned as well as run by one person. Also applies to partnership which can be regarded as formal arrangement set up between two or more parties so they can manage and operate a particular business as well as sharing of its profits. It should be noted that sole proprietorships and partnerships are taxed in a similar fashion