_____ pay taxes on profits they earn, and their shareholders pay taxes on dividends they receive, resulting in double taxation.

Name: _____ pay taxes on profits they earn, and their shareholders pay taxes on dividends they receive, resulting in double taxation.
Brand: Quizplus
Rating: 4.8 (47 reviews)

Question

_____ pay taxes on profits they earn,  and their shareholders pay taxes on dividends they receive, resulting in double taxation.

Quizplus · Accepted Answer

C-corporations are subject to double taxation, where the corporation itself pays taxes on its profits, and then shareholders also pay taxes on any dividends they receive from those profits.

_____ Pay Taxes on Profits They Earn, and Their Shareholders