All of the following are characteristics of C Corporations except:
A)unlimited life.
B)limited liability for the stockholders.
C)avoidance of double taxation.
D)ease of raising additional capital for expansion.

Question

Quizplus · Accepted Answer

C Corporations are subject to double taxation, which means that the corporation is taxed on its profits, and then the dividends paid to stockholders are taxed again. Therefore, the avoidance of double taxation is not a characteristic of C Corporations. The other options listed are indeed characteristics of C Corporations.

All of the Following Are Characteristics of C Corporations Except