A, B, C, X and Y are senior graduating Accountancy students in Far Southern University. Due to restrictions brought about by worsening COVID-19 pandemic, they have been staying at their common place in the province of Batanes. Among the four who are childhood friends since birth, only C is acquainted to X. While studying online to pursue their degree, they want to accomplish something else on the side. By way of a backgrounder, A had inherited from his departed parents 1 hectare of bare agricultural land. He wants to engage in an enterprise that will make his land productive. B is an independent self-sustaining seasonal farmer who owns 5 heads of young cattle and he wants to create an entity that will help him maximize the potential of what he has. C is a philanthropist at heart who is willing to help his town folks by providing them alternative sources of living through his bank savings amounting to P20,000.00. X on the other hand is a natural entrepreneur with impressive skills in selling. He wants to venture with his friends so he can use his merchant abilities and earn while studying. Finally, Y is a licensed non-professional driver. During his spare time, he drives his father's passenger jeepney to score some revenues. He plans of a venture with people like him that he can rely on at present but he wants this venture to last only for 3 years because he is determined to work abroad after becoming a CPA with brief work experience. QUESTION: Is it possible to form any organization that would join all of them? If yes, what specific type of organization is possible and explain how? (NOTE: If your answer is PARTNERSHIP, identify and explain what specific type of partnership. If your answer is CORPORATION, identify and explain what specific type of corporation. If your answer is COOPERATIVE, identify and explain what specific type of cooperative.) If your answer to the question is no, explain what makes it impossible to join all of them in one organization?

A, B, C, X and Y are senior graduating Accountancy students in Far Southern University. Due to restrictions brought about by worsening COVID-19 pandemic, they have been staying at their common place in the province of Batanes. Among the four who are childhood friends since birth, only C is acquainted to X. While studying online to pursue their degree, they want to accomplish something else on the side. By way of a backgrounder, A had inherited from his departed parents 1 hectare of bare agricultural land. He wants to engage in an enterprise that will make his land productive. B is an independent self-sustaining seasonal farmer who owns 5 heads of young cattle and he wants to create an entity that will help him maximize the potential of what he has. C is a philanthropist at heart who is willing to help his town folks by providing them alternative sources of living through his bank savings amounting to P20,000.00. X on the other hand is a natural entrepreneur with impressive skills in selling. He wants to venture with his friends so he can use his merchant abilities and earn while studying. Finally, Y is a licensed non-professional driver. During his spare time, he drives his father's passenger jeepney to score some revenues. He plans of a venture with people like him that he can rely on at present but he wants this venture to last only for 3 years because he is determined to work abroad after becoming a CPA with brief work experience. QUESTION: Is it possible to form any organization that would join all of them? If yes, what specific type of organization is possible and explain how? (NOTE: If your answer is PARTNERSHIP, identify and explain what specific type of partnership. If your answer is CORPORATION, identify and explain what specific type of corporation. If your answer is COOPERATIVE, identify and explain what specific type of cooperative.) If your answer to the question is no, explain what makes it impossible to join all of them in one organization?

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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ANSWER AND RESOLVE THIS PROBLEM AND ANSWER SHOULD BEGIN WITH A CLEAR CONCLUSION THEN FOLLOWED BY BRIEF DISCUSSIONS. A, B, C, X and Y are senior graduating Accountancy students in Far Southern University. Due to restrictions brought about by worsening COVID-19 pandemic, they have been staying at their common place in the province of Batanes. Among the four who are childhood friends since birth, only C is acquainted to X. While studying online to pursue their degree, they want to accomplish something else on the side. By way of a backgrounder, A had inherited from his departed parents 1 hectare of bare agricultural land. He wants to engage in an enterprise that will make his land productive. B is an independent self-sustaining seasonal farmer who owns 5 heads of young cattle and he wants to create an entity that will help him maximize the potential of what he has. C is a philanthropist at heart who is willing to help his town folks by providing them alternative sources of living through his bank savings amounting to P20,000.00. X on the other hand is a natural entrepreneur with impressive skills in selling. He wants to venture with his friends so he can use his merchant abilities and earn while studying. Finally, Y is a licensed non-professional driver. During his spare time, he drives his father's passenger jeepney to score some revenues. He plans of a venture with people like him that he can rely on at present but he wants this venture to last only for 3 years because he is determined to work abroad after becoming a CPA with brief work experience. QUESTION: Is it possible to form any organization that would join all of them? If yes, what specific type of organization is possible and explain how? (NOTE: If your answer is PARTNERSHIP, identify and explain what specific type of partnership. If your answer is CORPORATION, identify and explain what specific type of corporation. If your answer is COOPERATIVE, identify and explain what specific type of cooperative.) If your answer to the question is no, explain what makes it impossible to join all of them in one organization?

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.

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