Which type of business organization is subject to double taxation?A.Sole proprietorshipB.CorporationsC.PartnershipsD.Government corporationsE.Non-profits

Answer

The type of business organization that is subject to double taxation is B. Corporations.

In the case of corporations, they are separate legal entities, which means they pay taxes on their profits at the corporate level. After this income has been taxed, any dividends paid to shareholders are then taxed again at the individual income level. This phenomenon is known as double taxation.

In contrast, sole proprietorships and partnerships typically have pass-through taxation, meaning the income is only taxed once at the owner's or partners' personal tax rates. Non-profits are exempt from taxes as long as they operate within their exempt purpose. Government corporations are also not subject to traditional taxation in the same way that private corporations are.