The tax based on the profits (earnings) of a business is known as:

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $9.99Unlock all

Enhance your business skills with the Pivot Point Business 103 Test. Unlock success with strategic insights and multiple choice questions. Prepare with detailed explanations to excel in your exam!

Multiple Choice

The tax based on the profits (earnings) of a business is known as:

Explanation:
Income tax is the levy on earnings. When it’s based on a business’s profits, it’s the corporate income tax that applies to the net income after expenses. This differs from sales tax, which is charged on the sale of goods or services; payroll tax, which is tied to wages and salaries; and operating tax, which isn’t a standard term for taxes on profits. So, the tax on business profits is income tax.

Income tax is the levy on earnings. When it’s based on a business’s profits, it’s the corporate income tax that applies to the net income after expenses. This differs from sales tax, which is charged on the sale of goods or services; payroll tax, which is tied to wages and salaries; and operating tax, which isn’t a standard term for taxes on profits. So, the tax on business profits is income tax.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy