First Principles of Business Law
Business organisations in Australia

2. Sole traders

Question 7. Who is entitled to business profits made by a sole trader? How are these profits taxed?

 

 

 

Read the statements below and select the best one.

(a) As the owner of the business, a sole trader is entitled to any profits made. However, the business profits of a sole proprietorship are taxed differently from other income, and at a fixed lower rate.

(b) As the owner of the business, a sole trader is entitled to any profits made. These profits are treated as part of the sole trader's personal income and are taxed as such.

 

 

 

 

 

 

  

 

Question 1 2 3 4 5 6 7 8 9 10 11
Go to the list of questions in this section Go to the list of topics in this module Choose another module