The form of business organization that experiences double taxation is the
A) partnership.
B) corporation.
C) venture company.
D) syndicated partnership.
E) sole proprietorship.

Question

Quizplus · Accepted Answer

Corporations are subject to double taxation because they are taxed at both the corporate level and again at the individual level when shareholders receive dividends or capital gains. This is in contrast to partnerships, sole proprietorships, and certain other forms of business organization, which pass through their profits and losses to the owners' personal tax returns and are only taxed once.

The Form of Business Organization That Experiences Double Taxation Is