The owner of a sole proprietorship pays federal income taxes at the corporate income tax rate, based on the net earnings of the sole proprietorship.
Indicate whether the statement is true or false
Question 2
Homer Sidway hired Alma Dixson, dba Home Improvers, to add a room onto his existing home. Sidway had done some electrical work in his attic some years earlier. He had done so without a permit, and there were exposed wires and other problems with the workmanship. When Dixson went into the attic to do the wiring for the new room, he was injured as result of a shock from one of the wires. Homer:
A)Is liable to Alma for the failure to warn about the attic.
B)Is not liable since Alma was hired for his expertise and is expected to know these things.
C)Is not liable because Alma is a contractor and not an employee.
D)Is not liable because the contractor must carry insurance.
E)None of the above
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