Answer the following questions true (T) or false (F)
1. When a business is set up as a sole proprietorship, the owner of the business faces limited liability.
2. The only type of business that faces limited liability is a corporation.
3. In the United States, corporate profits are taxed at the corporate level and then are taxed again as personal income in the form of dividend payments.
1. FALSE
2. TRUE
3. TRUE
You might also like to view...
Menu costs are a possible reason for
A) swings in the labor force participation rate. B) low levels of consumer confidence in response to aggregate supply shocks. C) aggregate supply shocks. D) sticky product prices.
According to dynamic tax analysis, continually increasing the tax rate will eventually
A) cause an increase in the tax base. B) have no impact on the tax base. C) cause a decrease in the tax base. D) result in an initial decrease in the tax base followed ultimately by a rise in the tax base.