Double Taxation Is a Disadvantage of the Corporate Ownership Structure

question 84

Multiple Choice

Double taxation is a disadvantage of the corporate ownership structure.What does double taxation mean?

• A)Corporate tax rates are double the tax rates of sole proprietorships and partnerships
• B)Corporations are subject to both a tax on profits and on retained earnings
• C)Corporate profits are taxed at both the corporate and individual level
• D)Corporate profits are subject to both federal and state income taxes

---

Definitions:

Population Growth

An increase in the number of people that reside in a country, region, or city, which can impact various aspects of society including demand for products and services.

Government Subsidies

Financial assistance provided by the government to organizations, individuals, or industries to support activities deemed beneficial for the public good.

Currency Fluctuation

The variation in the value of one currency relative to another in the global market.

Inflation

A general increase in prices and fall in the purchasing value of money.