Final answer:
The correct option is b) Corporations, Partnerships, Owners. In a general partnership, partners pay taxes on their share of the income individually and the partnership as an entity is not taxed, preventing double taxation.
Step-by-step explanation:
The general partnership avoids the problem of double taxation experienced by C Corporations, because earnings of partnerships are taxed only as income of the partners, with no separate tax on the income of the business.
Therefore, the correct answer is: b) Corporations, Partnerships, Owners. A general partnership, consisting of two or more individuals owning a business, allows these partners to share both the profits and the responsibility of running the business.
Unlike C Corporations which are taxed on their profits and then the shareholders are taxed again on the dividends, partnerships ensure that the IRS taxes the profits only once as the partners' personal income, thereby avoiding the double taxation.