Question 12 (1 point) Double taxation in a corporation means: 1) the corporation must pay taxes twice a year 2) earnings of the corporation and dividends of the shareholders both are taxed 3 corporations can double their earnings without higher taxes 4 corporations must pay both state and federal taxes 5) none of the above Question 13 (1 point) The C Corporation is another term for: 1) the conventional form of corporation ..​

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Answer:

2. Earnings of the corporation are taxed as well as dividends of shareholders, creating a double taxation situation.

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