All of the Following Statements Are True Except

question 42

Multiple Choice

All of the following statements are true except

• A)the net income earned by a sole proprietorship is reported on the owner's individual income tax return.
• B)the net income of an S corporation is subject to double taxation because it is taxed at the entity level and dividends paid from the S corporation to individual shareholders are also taxed.
• C)the net income of C corporation is subject to double taxation because it is taxed at the entity level and dividends paid from the C corporation to individual shareholders is also taxed.
• D)LLCs are generally taxed as partnerships.

---

Definitions:

Sun

The Sun is the star at the center of the Solar System, around which the Earth and other planets orbit.

Decimal Notation

A method of writing numbers in terms of digits and decimal points to represent fractions and real numbers.

Sum

The outcome obtained by summing two or more numbers or amounts.

Expression

A combination of symbols and operators representing a mathematical value or relationship.