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Income distributed to owner(s) for sole proprietorship or partnership is known as?

a) Dividends
b) Salary
c) Profit sharing
d) Retained earnings

User Tschwab
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1 Answer

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Final answer:

Profit sharing is the income distributed to owner(s) for sole proprietorship or partnership.

Step-by-step explanation:

Income distributed to owner(s) for sole proprietorship or partnership is known as profit sharing.

Profit sharing is the distribution of a portion of a company's profits to its employees. It is usually based on a predetermined formula that takes into account factors such as salary, length of employment, and performance. For example, if a company's profit-sharing plan states that employees will receive 10% of the company's annual profits, and the company earns $1 million in profits, the employees will receive $100,000 in profit sharing.

User Ali Mirzaei
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