What is meant by the term "double taxation" as applied to the corporate form of business organization?

Question

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Double taxation in a corporate form of business organization refers to the fact that the corporate income is taxed at the corporate level, and then any dividends distributed to shareholders are taxed again at the individual level as personal income. This is unlike partnership or sole proprietorship where the business income is only taxed at the individual level.

What Is Meant by the Term "Double Taxation" as Applied