0

Taxation of Business Entities

Description: This quiz will test your knowledge on the taxation of business entities.
Number of Questions: 15
Created by:
Tags: taxation business entities income tax corporate tax
Attempted 0/15 Correct 0 Score 0

Which of the following is not a type of business entity for tax purposes?

  1. Sole proprietorship

  2. Partnership

  3. Limited liability company (LLC)

  4. Corporation


Correct Option: D
Explanation:

Corporations are not a type of business entity for tax purposes. They are considered to be separate legal entities from their owners, and are taxed as such.

Which of the following is not a type of tax that businesses may be subject to?

  1. Income tax

  2. Sales tax

  3. Property tax

  4. Payroll tax


Correct Option: B
Explanation:

Sales tax is not a type of tax that businesses may be subject to. It is a tax that is levied on the sale of goods and services, and is typically paid by the consumer.

Which of the following is not a deduction that businesses may be allowed to take on their tax returns?

  1. Cost of goods sold

  2. Salaries and wages

  3. Rent

  4. Interest


Correct Option: D
Explanation:

Interest is not a deduction that businesses may be allowed to take on their tax returns. It is a type of expense that is paid to lenders for the use of their money.

Which of the following is not a type of tax credit that businesses may be eligible for?

  1. Research and development credit

  2. Investment tax credit

  3. Foreign tax credit

  4. Child tax credit


Correct Option: D
Explanation:

The child tax credit is not a type of tax credit that businesses may be eligible for. It is a tax credit that is available to individuals who have children.

Which of the following is not a type of tax form that businesses may be required to file?

  1. Form 1040

  2. Form 1120

  3. Form 1065

  4. Form 941


Correct Option: A
Explanation:

Form 1040 is not a type of tax form that businesses may be required to file. It is a tax form that is used by individuals to file their income taxes.

Which of the following is not a factor that may affect a business's tax liability?

  1. The type of business entity

  2. The location of the business

  3. The amount of income the business earns

  4. The number of employees the business has


Correct Option: D
Explanation:

The number of employees a business has is not a factor that may affect its tax liability.

Which of the following is not a type of tax that businesses may be required to pay on their employees' wages?

  1. Social security tax

  2. Medicare tax

  3. Unemployment tax

  4. Workers' compensation tax


Correct Option: D
Explanation:

Workers' compensation tax is not a type of tax that businesses may be required to pay on their employees' wages. It is a type of insurance that businesses are required to carry to protect their employees in the event of a work-related injury or illness.

Which of the following is not a type of tax that businesses may be required to pay on their property?

  1. Property tax

  2. Real estate tax

  3. Special assessment tax

  4. Sales tax


Correct Option: D
Explanation:

Sales tax is not a type of tax that businesses may be required to pay on their property. It is a tax that is levied on the sale of goods and services, and is typically paid by the consumer.

Which of the following is not a type of tax that businesses may be required to pay on their sales?

  1. Sales tax

  2. Use tax

  3. Excise tax

  4. Value-added tax


Correct Option: D
Explanation:

Value-added tax is not a type of tax that businesses may be required to pay on their sales. It is a type of tax that is levied on the value added to a product or service at each stage of production and distribution.

Which of the following is not a type of tax that businesses may be required to pay on their imports?

  1. Customs duty

  2. Excise tax

  3. Import duty

  4. Value-added tax


Correct Option: D
Explanation:

Value-added tax is not a type of tax that businesses may be required to pay on their imports. It is a type of tax that is levied on the value added to a product or service at each stage of production and distribution.

Which of the following is not a type of tax that businesses may be required to pay on their exports?

  1. Export duty

  2. Excise tax

  3. Sales tax

  4. Value-added tax


Correct Option: C
Explanation:

Sales tax is not a type of tax that businesses may be required to pay on their exports. It is a tax that is levied on the sale of goods and services, and is typically paid by the consumer.

Which of the following is not a type of tax that businesses may be required to pay on their investments?

  1. Capital gains tax

  2. Dividend tax

  3. Interest tax

  4. Property tax


Correct Option: D
Explanation:

Property tax is not a type of tax that businesses may be required to pay on their investments. It is a tax that is levied on the ownership of real estate.

Which of the following is not a type of tax that businesses may be required to pay on their employees' benefits?

  1. Social security tax

  2. Medicare tax

  3. Unemployment tax

  4. Workers' compensation tax


Correct Option: D
Explanation:

Workers' compensation tax is not a type of tax that businesses may be required to pay on their employees' benefits. It is a type of insurance that businesses are required to carry to protect their employees in the event of a work-related injury or illness.

Which of the following is not a type of tax that businesses may be required to pay on their environmental impact?

  1. Carbon tax

  2. Pollution tax

  3. Resource tax

  4. Sales tax


Correct Option: D
Explanation:

Sales tax is not a type of tax that businesses may be required to pay on their environmental impact. It is a tax that is levied on the sale of goods and services, and is typically paid by the consumer.

Which of the following is not a type of tax that businesses may be required to pay on their use of public resources?

  1. Property tax

  2. Real estate tax

  3. Special assessment tax

  4. Sales tax


Correct Option: D
Explanation:

Sales tax is not a type of tax that businesses may be required to pay on their use of public resources. It is a tax that is levied on the sale of goods and services, and is typically paid by the consumer.

- Hide questions