AJ Company pays a business income tax and has two owners.h.Jeffy Auto is a separate legal entity from its owner, but it does not pay a business income tax." "Distinguishing business organizations C4The following describe several different business organizations. Determine whether eachdescription best refers to a sole proprietorship (SP), partnership (P), corporation (C), or limitedliability company (LLC)|a.Micah and Nancy own Financial Services, which pays a business income tax. Micah and Nancdo not have personal responsibility for the debts of Financial Services.b.Riley and Kay own Speedy Packages, a courier service. Both are personally liable for the debt:of the business.IBC Services does not have separate legal existence apart from the one person who owns it.d.Trent Company is owned by Trent Malone, who is personally liable for the company's debts.Ownership of Zander Company is divided into 1,000 shares of stock. The company pays abusiness income tax.f.Physio Products does not pay income taxes and has one owner. The owner has unlimitedliability for business debt.

Answered: "Distinguishing business organizations…

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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AJ Company pays a business income tax and has two owners.
h.
Jeffy Auto is a separate legal entity from its owner, but it does not pay a business income tax."

"Distinguishing business organizations C4
The following describe several different business organizations. Determine whether each
description best refers to a sole proprietorship (SP), partnership (P), corporation (C), or limited
liability company (LLC)|
a.
Micah and Nancy own Financial Services, which pays a business income tax. Micah and Nanc
do not have personal responsibility for the debts of Financial Services.
b.
Riley and Kay own Speedy Packages, a courier service. Both are personally liable for the debt:
of the business.
IBC Services does not have separate legal existence apart from the one person who owns it.
d.
Trent Company is owned by Trent Malone, who is personally liable for the company's debts.
Ownership of Zander Company is divided into 1,000 shares of stock. The company pays a
business income tax.
f.
Physio Products does not pay income taxes and has one owner. The owner has unlimited
liability for business debt.

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Since you have posted a question with multiple subparts, we will answer only first three subparts. If you want remaining subparts to be answered, please resubmit the question with specifying which subparts needs to be answered.

There are four forms of business. Sole proprietorship revolves around only one owner and he/she is also the manager. Partnership has atleast two persons who works on the basis of partnership agreement. Corporation is a separate legal entity and it is run and controlled by shareholders. Limited liability partnership has a feature of limited liability of partners.

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