John owns 500 shares of stock in Catawba Box, Inc. The company has recently announced the results for the quarter. The company earned a significant profit. Based on the form of ownership, the profit the company earns

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10-10-2018
Business

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John owns 500 shares of stock in Catawba Box, Inc. The company has recently announced the results for the quarter. The company earned a significant profit. Based on the form of ownership, the profit the company earns

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Tringa0 Tringa0 · Answer 1 · 2018-10-19T17:53:50+02:00

Answer: Is not taxed

Explanation: John owns 500 shares of stock in Catawba Box, Inc. He is the share holder of the company . An equity shareholder is the owner of the company. But for a big public limited company, they raise funds by going public and issuing shares to the public in small tranche. The profit earned by the company is taxable for the company while it is not taxed to the owners or the shareholders of the company as a company is a separate legal entity.