Which type of business organization is subject to double taxation?A.Sole proprietorshipB.CorporationsC.PartnershipsD.Government corporationsE.Non-profits
Question
Which type of business organization is subject to double taxation?A.Sole proprietorshipB.CorporationsC.PartnershipsD.Government corporationsE.Non-profits
Solution
B. Corporations are subject to double taxation. This is because the corporation's profits are taxed at the corporate level, and then any dividends distributed to shareholders are taxed again at the individual level.
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