Which one of the following statements concerning a proprietorship is true?

Select one:

a. Income from a proprietorship is taxed at a lower rate than other personal income.

b. A proprietorship can be a business jointly owned by two family members.

c. Income from a proprietorship is taxed as a separate entity.

d. A proprietor is personally responsible for 100% of the firm's liabilities.

e. A partial transfer of ownership is easier with a proprietorship than with a corporation.

12-

Partnership income is treated as personal income of the partners.

Select one:

a. True

b. False

13-

Art's Boutique has sales of $640,000 and costs of $480,000. Interest expense is $40,000 and depreciation is $60,000. The tax rate is 34%. What is the net income?

Select one:

a. $79,600

b. $20,400

c. $39,600

d. $99,600

e. $50,400

14-

A Quebec City firm has a debt-equity ratio of 0.65. From this, you can determine that the firm has _____ in assets for every $1 in equity.

Select one:

a. $2.54

b. $ 0.54

c. $ 0.65

d. $1.65

e. $1.54

Answer rating: 100% (QA)

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