What Aspect of the Tax Structure for Corporations Is Commonly

question 7

Multiple Choice

What aspect of the tax structure for corporations is commonly referred to as double taxation?

• A) The fact that the corporation pays both federal and state taxes
• B) The requirement of shareholders to personal income tax on dividends after the corporation pays corporate income tax on the same money
• C) The fact that both partners of the business are taxed
• D) The concept of both Shareholders and Directors being taxed on the business

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Definitions:

Sum

The result of adding two or more numbers or expressions together.

Polynomials

Algebraic expressions consisting of variables and coefficients, constructed from operations of addition, subtraction, multiplication, and non-negative integer exponents of variables.

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A combination of numbers, variables, operators, and sometimes parentheses that represents a value or quantity.

Decimal Notation

A way of expressing numbers that uses a decimal point to separate the whole part from the fractional part.