The Term "Double Taxation" Refers to Which of the Following

question 28

Multiple Choice

The term "double taxation" refers to which of the following:

• A) Sole proprietorships must pay income taxes on their net incomes and the owners are also required to pay income taxes on their withdrawals.
• B) In a partnership, both partners are required to claim their share of net income on their tax returns.
• C) Corporations must pay income taxes on their net income and their stockholders pay income tax on the dividends they receive.
• D) Limited Liability Companies are forced to pay income taxes to both the state and the federal governments.

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Definitions:

Rate of Return

The appreciation or depreciation in an investment's value over a set period, articulated as a percentage of the investment's buying price.

EPS

Earnings Per Share, a financial ratio indicating the amount of profit attributable to each share of common stock.

Annual Dividends

Regular payments made by a company to its shareholders out of its profits or reserves on a yearly basis.