Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 11 - Reporting and Analyzing Stockholders' Equity - Self-Test Questions - Page 601: 2

Answer

B - additional taxes

Work Step by Step

A disadvantage of a corporation is additional taxes, since it is a separate legal entity (since both the corporation and its individual owners are subject to taxes, this is referred to as “double taxation”)
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