The form of business ownership that involves double taxation and limited liability for the owners is the
A)partnership.
B)corporation.
C)Subchapter S corporation.
D)limited partnership.
E)sole proprietorship.

Question

Quizplus · Accepted Answer

A corporation is the form of business ownership that involves double taxation and limited liability for the owners. The corporation is a separate legal entity from its owners (shareholders), and it can own property, incur debts, sue and be sued, and pay taxes. The shareholders of a corporation are not personally liable for the corporation's debts and losses, and their liability is limited to their investment in the company. However, the corporation's profits are subject to corporate income tax, and any dividends paid to shareholders are also taxed as personal income, resulting in double taxation.

The Form of Business Ownership That Involves Double Taxation and Limited