One benefit of a public company that it allows shareholders to receive dividends without:

Question

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Public companies are subject to double taxation which means that the company is taxed on its profits and then shareholders are taxed again on any dividends they receive. However, shareholders still receive dividends despite this double taxation. Options A and B are incorrect as shareholders are still required to pay taxes on any dividends they receive. Option D is incorrect as partnership taxation does not apply to public companies.

One Benefit of a Public Company That It Allows Shareholders