The net income of a sole proprietorship should compensate the owner for all of the following except:
A)Personal service.
B)The income taxes paid by the owner.
C)Capital invested by the owner.
D)The risk taken by the owner.

Question

Quizplus · Accepted Answer

Income taxes paid by the owner are not part of the owner's compensation. The net income should compensate the owner for their personal service, capital invested, and the risk taken.

The Net Income of a Sole Proprietorship Should Compensate the Owner