Which of the following forms of organizations have earnings that are taxed twice,once as business income and once as personal income as the earnings are distributed to the owners in the form of dividends?
A) corporations
B) general partnerships
C) limited partnerships
D) both A and C

Question

Quizplus · Accepted Answer

Corporations are subject to double taxation because their earnings are taxed at the corporate level, and then dividends distributed to shareholders are taxed again at the individual level. General and limited partnerships, on the other hand, are typically pass-through entities where income is taxed only once at the individual owners' level.

Which of the Following Forms of Organizations Have Earnings That