_____ refers to the situation where earnings of the business are distributed to the business owners and those owners pay individual tax on the earnings.
A)Check the box taxation
B)Double taxation
C)Single taxation
D)Pass through taxation

Question

Quizplus · Accepted Answer

Pass through taxation refers to the situation where the business itself is not taxed, but rather the earnings are passed through to the individual owners who report their share of the earnings on their personal tax returns. This avoids double taxation and is the taxation method used by many small businesses and partnerships.

_____ Refers to the Situation Where Earnings of the Business