1. A, B, C are partners operating a small store for two years. The partners are considering the possible incorporation of the partnership. What are the disadvantages and disadvantages offered by such a change?

1. A, B, C are partners operating a small store for two years. The partners are considering the possible incorporation of the partnership. What are the disadvantages and disadvantages offered by such a change?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

1. A, B, C are partners operating a small store for two years. The partners are considering the possible
incorporation of the partnership. What are the disadvantages and disadvantages offered by such a
change?
2. Differentiate: (a)
(b)
stock from non-stock corporation.
private from public corporation
de jure from de facto corporation?

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Which of the following would likely result to dissolution of a partnership? Partners realize that the profit figures have failed to reach projected levels The partners decided to diversify their business operations. One of the partners permanently withdrew 50% of his capital ownership. Partners are incompatible and choose to cease operations
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