Proprietorship: When single person start a business it is sole proprietorship kind of business. This is one of the common form of business organization. In this type of business organization all the decision related to sale, purchase, expenses, distribution of goods and many more business activity are conducted by the owner of sole proprietorship firm. Partnership : When two or more person want to start the same business, they became partners and start partnership firm. The partnership firm follows the rule and promises mention in partnership deed. There is no compulsion to register the partnership firm. Corporation : A corporation is a company or group of company to perform business activity The corporation may be profit making or nonprofit making but most of the attributes are same. A corporation has to be registered under the law of the country. To identify: The given attributes are related to which form of business.

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Answer 1

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Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 1, Problem 5QS

To determine

Proprietorship: When single person start a business it is sole proprietorship kind of business. This is one of the common form of business organization. In this type of business organization all the decision related to sale, purchase, expenses, distribution of goods and many more business activity are conducted by the owner of sole proprietorship firm.

Partnership: When two or more person want to start the same business, they became partners and start partnership firm. The partnership firm follows the rule and promises mention in partnership deed. There is no compulsion to register the partnership firm.

Corporation: A corporation is a company or group of company to perform business activity The corporation may be profit making or nonprofit making but most of the attributes are same. A corporation has to be registered under the law of the country.

To identify: The given attributes are related to which form of business.

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Q: Compare the characteristics of organizational and legal forms of enterprises: Criteria The organizational and legal form Individual entrepreneur Economic partnership (LLC) Economic society (JSC) Simplicity of the creation Control over the activities Liability of the owners Investment Liquidity* Period of existence

Refer to Chapter 11-1A, page 619: Characteristics of sole proprietorships, partnerships, and corporations Required The three primary types of business organization are proprietorship, partnership, and corporation. Each type has characteristics that distinguish it from the other types. In the left column of the following table write the name of the type of business organization that is most likely to possess the characteristic that is described in the right column of the table. The first item is shown as an example. Business Type Characteristic Proprietorship Owned and operated by a single individual Subject to double taxation Has a retained earnings account on its balance sheet One owner may be held personally liable for actions taken on behalf of the business by different owner Profits benefit a single individual Frequently uses legal agreements to define profit distribution for two or more owners Most highly regulated form of business The business dissolves with the death of its only…

2. Which type of business is owned by one individual? a. Corporation b. Partnership c. Proprietorship d. Limited Liability Company (LLC)

Answer 2

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Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 1, Problem 5QS

To determine

Proprietorship: When single person start a business it is sole proprietorship kind of business. This is one of the common form of business organization. In this type of business organization all the decision related to sale, purchase, expenses, distribution of goods and many more business activity are conducted by the owner of sole proprietorship firm.

Partnership: When two or more person want to start the same business, they became partners and start partnership firm. The partnership firm follows the rule and promises mention in partnership deed. There is no compulsion to register the partnership firm.

Corporation: A corporation is a company or group of company to perform business activity The corporation may be profit making or nonprofit making but most of the attributes are same. A corporation has to be registered under the law of the country.

To identify: The given attributes are related to which form of business.

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Answer 3

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Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 1, Problem 5QS

To determine

Proprietorship: When single person start a business it is sole proprietorship kind of business. This is one of the common form of business organization. In this type of business organization all the decision related to sale, purchase, expenses, distribution of goods and many more business activity are conducted by the owner of sole proprietorship firm.

Partnership: When two or more person want to start the same business, they became partners and start partnership firm. The partnership firm follows the rule and promises mention in partnership deed. There is no compulsion to register the partnership firm.

Corporation: A corporation is a company or group of company to perform business activity The corporation may be profit making or nonprofit making but most of the attributes are same. A corporation has to be registered under the law of the country.

To identify: The given attributes are related to which form of business.

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Check out a sample textbook solution

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Answer 4

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 1, Problem 5QS

To determine