Definitions

What is Double Taxation?

Double Taxation Definition Double taxation is a term that refers to when a company’s income is taxed and then the distributions or dividends that are paid to shareholders are also taxed. The C-corporation is the only business structure that undergoes double taxation. Since a C-corporation is an entity established separately from its owners and its …

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What does EBIT Mean & How does it Work?

EBIT Definition EBIT (an acronym and also known as Operating Profit), is short for Earnings Before Interest and Taxes, measures the metrics of earnings for a business over a specific period of time, but excludes interest and income tax expenses. Interest and taxes are not included in this calculation because interest and taxes are not expenses that are a result of operations. EBIT is the difference between …

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What is Owner’s Equity and How is it Calculated? | Definition | Formula | Examples

Looking for information about what owner’s equity is, how to calculate it and why it’s important to a business? We have an explanation for all of the components here! Owner’s Equity Defined The definition of owner’s equity is the residual equity that remains after deducting liabilities from the assets of a business. Owner’s equity represents …

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