A C corporation's disadvantage is double taxation.This means that ______.
A)the corporation is taxed on the profit it makes and the shareholders are taxed on the dividends
B)the corporation pays taxes in April and October
C)corporations are taxed more heavily than other corporate structures
D)corporations pay taxes on the goods they purchase to create the product rather than on the profits from the sale of the goods

Question

Quizplus · Accepted Answer

Double taxation means that the corporation is taxed on the profit it makes and the shareholders are taxed on the dividends. This is a disadvantage of C corporations.

A C Corporation's Disadvantage Is Double Taxation