Question

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

1) Income tax
2) Sales tax
3) Property tax
4) Corporate tax

Answer 1

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

The answer is option ⇒4

Step-by-step explanation:

Corporate tax is calculated based on the profits earned by a company during a specific period, usually a fiscal year. The tax rate applied to these profits varies depending on the country and the size of the company. In many countries, corporate tax rates are progressive, meaning that larger companies often face higher tax rates than smaller ones.

It is worth noting that corporate tax is different from personal income tax, which is levied on the income earned by individuals. Corporate tax is specific to businesses and is designed to ensure that companies contribute a portion of their profits to the government to support public services and infrastructure.

The answer is option ⇒4