List the most common legal entities that are used for operating a business. Discuss how these entities are similar and different for state law purposes.

Question

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Answer 1

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 15, Problem 1DQ

To determine

List the most common legal entities that are used for operating a business. Discuss how these entities are similar and different for state law purposes.

Expert Solution & Answer

Explanation of Solution

The following are the most common legal entities that are used for operating a business:

Corporations.
Limited liability Companies (LLCs).
Partnerships.
Sole Proprietorships.

The following are the similarity of the above entities for state law purposes:

The state laws protect all the members or owners of Corporations and LLCs from personal legal entities.
Corporations, Limited liability Companies (LLCs), and Partnerships are identified as business entities for state law purposes.

The following are the differences among the above entities for state law purposes:

The legal rights and responsibilities, and number of owners of each entity are different from other.
The tax rule to determine tax on the entities and their owners are different from each other.

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Answer 2

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 15, Problem 1DQ

To determine

List the most common legal entities that are used for operating a business. Discuss how these entities are similar and different for state law purposes.

Expert Solution & Answer

Explanation of Solution

The following are the most common legal entities that are used for operating a business:

Corporations.
Limited liability Companies (LLCs).
Partnerships.
Sole Proprietorships.

The following are the similarity of the above entities for state law purposes:

The state laws protect all the members or owners of Corporations and LLCs from personal legal entities.
Corporations, Limited liability Companies (LLCs), and Partnerships are identified as business entities for state law purposes.

The following are the differences among the above entities for state law purposes:

The legal rights and responsibilities, and number of owners of each entity are different from other.
The tax rule to determine tax on the entities and their owners are different from each other.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

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 15, Problem 1DQ

To determine

List the most common legal entities that are used for operating a business. Discuss how these entities are similar and different for state law purposes.

Expert Solution & Answer

Explanation of Solution

The following are the most common legal entities that are used for operating a business:

Corporations.
Limited liability Companies (LLCs).
Partnerships.
Sole Proprietorships.

The following are the similarity of the above entities for state law purposes:

The state laws protect all the members or owners of Corporations and LLCs from personal legal entities.
Corporations, Limited liability Companies (LLCs), and Partnerships are identified as business entities for state law purposes.

The following are the differences among the above entities for state law purposes:

The legal rights and responsibilities, and number of owners of each entity are different from other.
The tax rule to determine tax on the entities and their owners are different from each other.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

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 15, Problem 1DQ

To determine

List the most common legal entities that are used for operating a business. Discuss how these entities are similar and different for state law purposes.

Expert Solution & Answer

Explanation of Solution

The following are the most common legal entities that are used for operating a business:

Corporations.
Limited liability Companies (LLCs).
Partnerships.
Sole Proprietorships.

The following are the similarity of the above entities for state law purposes:

The state laws protect all the members or owners of Corporations and LLCs from personal legal entities.
Corporations, Limited liability Companies (LLCs), and Partnerships are identified as business entities for state law purposes.

The following are the differences among the above entities for state law purposes:

The legal rights and responsibilities, and number of owners of each entity are different from other.
The tax rule to determine tax on the entities and their owners are different from each other.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 15, Problem 1DQ

To determine

List the most common legal entities that are used for operating a business. Discuss how these entities are similar and different for state law purposes.

Expert Solution & Answer

Explanation of Solution

The following are the most common legal entities that are used for operating a business:

Corporations.
Limited liability Companies (LLCs).
Partnerships.
Sole Proprietorships.

The following are the similarity of the above entities for state law purposes:

The state laws protect all the members or owners of Corporations and LLCs from personal legal entities.
Corporations, Limited liability Companies (LLCs), and Partnerships are identified as business entities for state law purposes.

The following are the differences among the above entities for state law purposes:

The legal rights and responsibilities, and number of owners of each entity are different from other.
The tax rule to determine tax on the entities and their owners are different from each other.

Answer 6

Chapter 15, Problem 1DQ

To determine

List the most common legal entities that are used for operating a business. Discuss how these entities are similar and different for state law purposes.

Expert Solution & Answer

Explanation of Solution

The following are the most common legal entities that are used for operating a business:

Corporations.
Limited liability Companies (LLCs).
Partnerships.
Sole Proprietorships.

The following are the similarity of the above entities for state law purposes:

The state laws protect all the members or owners of Corporations and LLCs from personal legal entities.
Corporations, Limited liability Companies (LLCs), and Partnerships are identified as business entities for state law purposes.

The following are the differences among the above entities for state law purposes:

The legal rights and responsibilities, and number of owners of each entity are different from other.
The tax rule to determine tax on the entities and their owners are different from each other.

Answer 7

Chapter 15, Problem 1DQ

To determine

List the most common legal entities that are used for operating a business. Discuss how these entities are similar and different for state law purposes.

Answer 8

Expert Solution & Answer

Explanation of Solution

The following are the most common legal entities that are used for operating a business:

Corporations.
Limited liability Companies (LLCs).
Partnerships.
Sole Proprietorships.

The following are the similarity of the above entities for state law purposes:

The state laws protect all the members or owners of Corporations and LLCs from personal legal entities.
Corporations, Limited liability Companies (LLCs), and Partnerships are identified as business entities for state law purposes.

The following are the differences among the above entities for state law purposes:

The legal rights and responsibilities, and number of owners of each entity are different from other.
The tax rule to determine tax on the entities and their owners are different from each other.