Which one of the following statements is correct?
A) Both partnerships and corporations incur double taxation.
B) Both sole proprietorships and partnerships are taxed in a similar fashion.
C) Partnerships are the most complicated type of business to form.
D) Both partnerships and corporations have limited liability for general partners and shareholders.
E) All types of business formations have limited lives.

Question

Quizplus · Accepted Answer

Sole proprietorships and partnerships are taxed similarly, as income is passed through to the owners' personal tax returns.

Which One of the Following Statements Is Correct