From a taxation perspective, the form of business organization with the highest business level taxes is the
A) sole proprietorship.
B) corporation.
C) partnership.
D) S corporation.

Question

Quizplus · Accepted Answer

Corporations face the highest level of business taxes because they are taxed as separate legal entities. This means they pay corporate income tax on their profits, and then shareholders also pay taxes on dividends received, leading to double taxation. Sole proprietorships, partnerships, and S corporations generally pass their income directly to their owners, avoiding this double layer of taxation.

From a Taxation Perspective, the Form of Business Organization with the Highest