One advantage of the corporate form of organization is that it avoids double taxation.

a. True

b. False

Question

Kiara Acosta

Social Studies

24 July, 14:29

One advantage of the corporate form of organization is that it avoids double taxation.

a. True

b. False

+2

Answers (1)

Know the Answer?

Tommy Hernandez · Answer 1

This is false. Corporations are taxed on their dividends once they are taken by the shareholders. In addition, the funds are taxed against the corporation when they have first been realized. This is where the concept of "double taxation" comes from: the income is taxed twice.

One advantage of the corporate form of organization is that it avoids double taxation.a. Trueb. False

One advantage of the corporate form of organization is that it avoids double taxation.

a. True

b. False