Double taxation is a disadvantage of the ___________ type of business firm.

Question

Quizplus · Accepted Answer

Corporate type of business firms are subject to double taxation where the profits of the corporation are taxed at the corporate level and then again at the individual level when they are distributed to the shareholders as dividends. This is not the case for partnerships and proprietorships where the profits are only taxed once at the individual level. Farms do not necessarily fall under a specific type of business structure and can be structured as partnerships, corporations, or proprietorships.

Double Taxation Is a Disadvantage of the ___________ Type of Business