Asked by Yujing Huang on Jul 17, 2024
Verified
Which one of the following statements is correct?
A) Both partnerships and corporations incur double taxation.
B) Both sole proprietorships and partnerships are taxed in a similar fashion.
C) Partnerships are the most complicated type of business to form.
D) Both partnerships and corporations have bylaws.
E) All types of business formations have limited lives.
Double Taxation
A taxation principle referring to income taxes paid twice on the same source of earned income, commonly seen in corporate dividends.
Sole Proprietorships
A business owned and operated by a single individual, where the owner and the business are legally the same entity.
Bylaws
Regulations, rules, or laws adopted by an organization or community to govern its actions and the actions of its members.
- Gain insight into how taxation varies among different types of business frameworks.
Verified Answer
Learning Objectives
- Gain insight into how taxation varies among different types of business frameworks.
Related questions
Which of the Following Is Disadvantage of a Sole Proprietorship ...
Tutoring Concerns ...
Double Taxation of Earnings Is the Primary Financial Disadvantage of ...
The S-Corporation Was Designed to Address the Concerns of Shareholders ...
How Is Taxation Different in the Corporate and Proprietorship Forms ...