A Disadvantage of Corporations Is That They Are Subject to ________

question 15

Multiple Choice

A disadvantage of corporations is that they are subject to ________, which means that a corporation is taxed on its net income and when the same income is distributed to shareholders in the form of dividends it is taxed again on shareholders' personal income tax returns.

• A) double taxation
• B) dual toll
• C) double duty
• D) double assessment
• E) dual harm

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Definitions:

Indirect Expenses

Indirect expenses are costs that cannot be directly attributed to a specific cost object, such as overhead or administrative expenses.

Direct Expenses

Direct expenses are costs that can be directly tied to the production or procurement of specific goods or services, such as raw materials and labor.

Direct Expense

Costs that can be directly traced to a product, service, or project, such as raw materials and labor.

Wages

Payments to employees for their labor or services, typically calculated on an hourly, daily, or piecework basis and paid on a regular schedule.