How are after-tax profits dispersed in a sole proprietorship?
A) Investors are paid first.
B) All after tax dollars belong to the owner.
C) Employees are paid first.
D) Stakeholders are ranked by order of importance and paid by percentage of profit.
E) All profit is reinvested in the business.
Answer: B
Explanation: As a sole proprietor, you keep all the after-tax profits the business generates; if the business does extremely well, you do extremely well.
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