A business can be done under any form of the business organization depending upon the requirement. A sole proprietorship is managed by a single person. The proprietor has unlimited liability and enjoys entire profits of the sole proprietorship. A partnership is the type of business form in which two or more persons engage in doing business for mutual benefits. A corporation is the type of business which is owned by its shareholders and they have limited liability. To Identify: Type of the 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 6E

Summary Introduction

Concept Introduction:

A business can be done under any form of the business organization depending upon the requirement. A sole proprietorship is managed by a single person. The proprietor has unlimited liability and enjoys entire profits of the sole proprietorship. A partnership is the type of business form in which two or more persons engage in doing business for mutual benefits. A corporation is the type of business which is owned by its shareholders and they have limited liability.

To Identify: Type of the business.

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Franklin, John, Henry, and Harry have decided to pool their financial resources and business skills in order to open up and run a coffee shop. They will share any profits or losses that the business generates and will be personally responsible for making good on any debt that their business undertakes. Their business should be classified as a. corporation. b. sole proprietorship. c. partnership. d. none of the above.

The following describe several different business organizations. Determine whether each description bestrefers to a sole proprietorship (SP), partnership (P), corporation (C), or limited liability company (LLC). Riley and Kay own Speedy Packages, a courier service. Both are personally liable for the debts of the business.

B. Analysis of Information. Presented below are possible advantages and disadvantages. You are to determine in the first column whether the item pertains to an advantage or disadvantage. On the second column, you are to determine the related business organization. Item 1 has been done for you.Information Advantage or DisadvantageBusiness Organization1. In the event of bankruptcy, business creditors can run after the personal assets of the owners.Disadvantage Sole Proprietorship Partnership2. Involvement of more persons in the business, hence more sources of expertise as compared to the most simple business organization.3. Transferability of ownership4. Limited life5. Business organization as a juridical or separate person6. Corporate existence of 50 years, renewable7. Most limited source of funding8. Most regulated business organization9. Double taxation10. Limited liability11. Unlimited liability

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 6E

Summary Introduction

Concept Introduction:

A business can be done under any form of the business organization depending upon the requirement. A sole proprietorship is managed by a single person. The proprietor has unlimited liability and enjoys entire profits of the sole proprietorship. A partnership is the type of business form in which two or more persons engage in doing business for mutual benefits. A corporation is the type of business which is owned by its shareholders and they have limited liability.

To Identify: Type of the 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 6E

Summary Introduction

Concept Introduction:

A business can be done under any form of the business organization depending upon the requirement. A sole proprietorship is managed by a single person. The proprietor has unlimited liability and enjoys entire profits of the sole proprietorship. A partnership is the type of business form in which two or more persons engage in doing business for mutual benefits. A corporation is the type of business which is owned by its shareholders and they have limited liability.

To Identify: Type of the business.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

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 6E

Summary Introduction