Which of the following statements describes the company characteristic termed double taxation?
A)Companies pay income tax on company earnings, and shareholders pay personal income tax on company dividends and gains from sale of shares.
B)The liabilities of the company cannot be extended to the personal assets of the shareholder.
C)Company shares can be readily bought and sold by investors on the open market.
D)Shareholders are not authorised to sign contracts or make business commitments on behalf of the company.

Question

Quizplus · Accepted Answer

Double taxation refers to the situation where a corporation's profits are taxed at the corporate level, and then dividends distributed to shareholders are taxed again at the individual level.

Which of the Following Statements Describes the Company Characteristic Termed