The corporation,like the proprietorship,avoids the "double taxation" disadvantage associated with the partnership form of ownership.

Question

Quizplus · Accepted Answer

Corporations are subject to double taxation where the profits are taxed at the corporate level and dividends paid to shareholders are taxed again at the individual level. Proprietorships and partnerships avoid this by having income taxed only once at the individual owner's or partners' level.

The Corporation,like the Proprietorship,avoids the "Double Taxation" Disadvantage Associated with the Partnership