The income and losses from each of these business entities is passed through to the individual EXCEPT for a:

The correct answer is a C corporation because this type of business entity is distinct in that it is taxed separately from its owners. In contrast to pass-through entities, where the income and losses are reported on the individual owners' tax returns, a C corporation files its own tax return and pays corporate taxes on its profits. After taxes have been paid at the corporate level, any distribution of profits to shareholders, often in the form of dividends, is also taxed on the shareholders’ individual tax returns, leading to double taxation.

On the other hand, general partnerships, limited partnerships, and sole proprietorships are considered pass-through entities. In these structures, the income or losses generated by the business are "passed through" directly to the owners or partners, who report that income or loss on their personal tax returns, thereby avoiding double taxation at the business level. This feature makes general partnerships, limited partnerships, and sole proprietorships appealing for many small business owners and investors.