Double Taxation Is a Disadvantage of the Corporate Ownership Structure

Multiple Choice

Double taxation is a disadvantage of the corporate ownership structure.What does double taxation mean?

A) Corporate tax rates are double the tax rates of sole proprietorships and partnerships
B) Corporations are subject to both a tax on profits and on retained earnings
C) Corporate profits are taxed at both the corporate and individual level
D) Corporate profits are subject to both federal and state income taxes