The term "double taxation" refers to which of the following:
A) Sole proprietorships must pay income taxes on their net incomes and the owners are also required to pay income taxes on their withdrawals.
B) In a partnership, both partners are required to claim their share of net income on their tax returns.
C) Corporations must pay income taxes on their net income and their stockholders pay income tax on the dividends they receive.
D) Limited Liability Companies are forced to pay income taxes to both the state and the federal governments.
Correct Answer:
Verified
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