DescriptionBusiness Organizationa.Riley and Kay own Speedy Packages, a courier service. Both are personally liable for the debts of the business.Partnershipb.Lannister owns Wealth Management. The business is a separate legal entity and pays an additional business income tax. c.Raymond and Amy own Security Services. The business is not a separate legal entity. d.Ownership of Zander Company is divided into 1,000 shares of stock. The company pays a business income tax.Corporatione.Russell is the sole owner of Wilson Sports. The business is not a separate legal entity from Russell and the business ends with his death. f.Trent Company is owned by Trent Malone, who is personally liable for the company's debts.Sole proprietorshipg.Micah and Nancy own Financial Services, which pays a business income tax. Micah and Nancy do not have personal responsibility for the debts of Financial Services.Corporationh.Vera is the sole owner of Tech Solutions. The business is a separate legal entity and does not pay an additional business income tax.

Introduction: A partnership is a contractual obligation between 2 or more persons to manage and…

Answered: Description Business Organization a.…

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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	Description	Business Organization
a.	Riley and Kay own Speedy Packages, a courier service. Both are personally liable for the debts of the business.	Partnership
b.	Lannister owns Wealth Management. The business is a separate legal entity and pays an additional business income tax.
c.	Raymond and Amy own Security Services. The business is not a separate legal entity.
d.	Ownership of Zander Company is divided into 1,000 shares of stock. The company pays a business income tax.	Corporation
e.	Russell is the sole owner of Wilson Sports. The business is not a separate legal entity from Russell and the business ends with his death.
f.	Trent Company is owned by Trent Malone, who is personally liable for the company's debts.	Sole proprietorship
g.	Micah and Nancy own Financial Services, which pays a business income tax. Micah and Nancy do not have personal responsibility for the debts of Financial Services.	Corporation
h.	Vera is the sole owner of Tech Solutions. The business is a separate legal entity and does not pay an additional business income tax.

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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