What is "double taxation" in the context of a corporation?
Consumers are taxed twice, once when they purchase products and once when they receive dividend cheques.
The federal government taxes corporate earnings at twice the rate of earnings of sole proprietors.
Gross earnings are taxed, then net earnings.
A corporation must pay income taxes on its profits, and then shareholders must also pay personal income taxes on the dividends they receive from the corporation.
None of these explain double taxation.
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q109: Which is the most important reason for
Q110: How is a cooperative different from a
Q111: Which of the following is correct with
Q112: Voting rights in a cooperative are
not restricted
Q113: The person or people responsible for the
Q115: The purpose of a cooperative is
as a
Q116: An entrepreneur, Christina Rossini, is planning to
Q117: A study by CIBC World Markets found
Q118: Suzy is considering incorporating her financial consulting
Q119: An entrepreneur, Christina Rossini, is planning to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents