The stock of Old Germany Brewery is totally owned by the Prechter family. When the family elected to move from a sole proprietorship to a corporation, the greatest concern was ______.
A) there might be family squabbles
B) how to limit liability
C) choosing work assignments
D) double taxation

Question

Quizplus · Accepted Answer

When a sole proprietorship converts to a corporation, one of the main concerns is double taxation, as corporations are taxed on their profits and shareholders are taxed again on dividends.

The Stock of Old Germany Brewery Is Totally Owned by the Prechter