State whether the given statement is true or false.
Answer to Problem 1TF
The given statement “When two or more individuals engage in an enterprise as co-owners, the organization is known as a proprietorship” is false.
Explanation of Solution
A partnership is an unincorporated form of business which is formed by an agreement, owned and managed mutually by two or more individuals, who invest their assets in the business and share the liabilities and profits among themselves.
“When two or more individuals engage in an enterprise as co-owners, the organization is known as a partnership”. It is a form of organization which is common to all types of enterprises. However, this form of organization is prevalent in personal service enterprises rather than merchandising businesses.
Therefore, from the above explanation, the given statement “When two or more individuals engage in an enterprise as co-owners, the organization is known as a proprietorship” is false.
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Chapter 19 Solutions
College Accounting, Chapters 1-27
- The concept of an "artificial being" refers to which form of business organization? a. Partnership * O Partnership O Sole proprietorship O Corporation O Limited partnershiparrow_forwardAssociation of two or more persons to carry on, as co-owners, a business for profit is known as: a. Limited liability Partnership. b. Proprietorship firm. c. Parent company. d. Corporation.arrow_forwardThe concept of separate legal entity is applicable to which of the following types of businesses? Sole Proprietorship Partnership Corporation All of the abovearrow_forward
- Which business organization has the most legal formality requirements? a. Corporation b. Partnership c. Joint Ventures d. Sole proprietorshiparrow_forwardDetermine whether each describes a sole proprietorship, a general partnership, or a corporation. Note that a characteristic may apply to more than one type of business structure. : View the image for the table to help answer.arrow_forwardDiscuss the advantages and disadvantages of a. Sole Proprietorship b. Partnership c. Corporation d. Cooperativearrow_forward
- What are the key differences among proprietorships, partnerships, and corporations?arrow_forwardWhich type of business organization is owned by only one owner? a. Corporation b. Partnership c. Sole proprietorship d. Items a, b, and c are all correcarrow_forward3. Explain the concept of the following Business Ownerships: Sole Proprietorship, Partnership, Corporation, and Cooperation. Describe the advantages and disadvantages of each business.arrow_forward
- Which forms of business organization, ownership is readily transferable? a. Corporation b. Sole Proprietorship c. Limited Liability Company d. Partnershiparrow_forwardWhat are the different benefits of being a corporation compared to a sole proprietorship or in a general partnershiparrow_forwardWhich of the following is NOT a form of ownership that the entrepreneur should consider? a. Sole proprietorship b. Limited partnership c. Corporation d. General partnershiparrow_forward
- College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,