Explain Advantages vs Proprietorship 1. Brings greater financial capability to the business. 2. Combine special skills, expertise, and experience to the partners. 3. Offers relative freedom and flexibility of action in decision-making. Advantages vs Corporation 1 1. Easier and less expensive to organize 2. More personal and informal Disadvantages 1. Easily dissolved and thus unstable compared to a corporation. 2. Mutual agency and unlimited liability may create personal obligations to partners. 3. Less effective than a corporation in raising large amounts of capital
Explain Advantages vs Proprietorship 1. Brings greater financial capability to the business. 2. Combine special skills, expertise, and experience to the partners. 3. Offers relative freedom and flexibility of action in decision-making. Advantages vs Corporation 1 1. Easier and less expensive to organize 2. More personal and informal Disadvantages 1. Easily dissolved and thus unstable compared to a corporation. 2. Mutual agency and unlimited liability may create personal obligations to partners. 3. Less effective than a corporation in raising large amounts of capital
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Explain
Advantages vs Proprietorship
1. Brings greater financial capability to the
business.
2. Combine special skills, expertise, and
experience to the partners.
3. Offers relative freedom and flexibility of
action in decision-making.
Advantages vs Corporation
1
1. Easier and less expensive to organize
2. More personal and informal
Disadvantages
1. Easily dissolved and thus unstable compared
to a corporation.
2. Mutual agency and unlimited liability may
create personal obligations to partners.
3. Less effective than a corporation in raising
large amounts of capital
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