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    Exam 6: Business Formation: Choosing the Form That Fits
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    One Drawback of an S Corporation Is That Its Earnings
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One Drawback of an S Corporation Is That Its Earnings

Question 34

Question 34

True/False

One drawback of an S corporation is that its earnings are taxed by the IRS, which also taxes the dividends it pays to its stockholders. This results in the double taxation of an S corporation's earnings.

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