S Corporation Status Always Avoids Double Taxation

question 45

True/False

S corporation status always avoids double taxation.

---

Definitions:

Insurance Policy

An insurance policy is a contract between an insurer and the insured, detailing the terms under which the insurer agrees to compensate for specific financial losses or damages.

Utmost Good Faith

A legal doctrine requiring parties to act with honesty and not mislead or withhold information from each other.

Co-insurance Clause

A provision in insurance policies that divides the risk of loss between the insurer and the insured, based on a fixed percentage of the value of the insured item.

Insured

A person or entity covered under an insurance policy, receiving financial protection or reimbursement against losses.