How can the separate entity concept benefit the owner and the business

Q: What is the doctrine of continuity of business enterprise and continuity of proprietary interest?

A: A merger or acquisition refers to the transactions involving transfer or combination of ownership…

Q: Describe the different types of legal arrangements that can take place to create a business…

A: Corporation:   Business concerns which have a separate legal entity; and are owned by shareholders,…

Q: naked debenture

A: Debentures which are not secured by specific assets is known as Naked debentures.

Q: Explain the indirect ownership interests and who has the indirect interests? Describe the situation…

A: An ownership interest in an entity that owns an ownership interest in another entity. This is…

Q: Why might different companies account for similar transactions in different ways?

A: Financial statement includes both income statement and the position statement of the company. These…

Q: What is the relationship between principle-agency theory, separation of ownership, and controversy?

A: Corporation there are shareholders who are the owners of the company but they do not run the company…

Q: What are some of the advantages of holding companies? Identify adisadvantage.

A: The advantages of holding company: Risk reduction: Large companies favor a structure of holding…

Q: Which type of business organisation has a separated legal entity from its owners, and the owners are…

A: A. Limited Liability Company (LLC) A Limited Liability Company (LLC) is a cross between a…

Q: Differentiate between S and C corporations.

A: Answer: An S corporation is like any other company established under state law, except that for…

Q: Discuss how does the growth and scalability of a sole proprietorship compare to other forms of…

A: When it comes to starting a business, one of the key decisions that entrepreneurs must make is…

Q: he entity that obtains control over another business in a business combination called the

A: Consolidated financial statements: When an investor company holds above 50% in the outstanding stock…

Q: Which type of business is considered separate from those who own it?

A: A business means an organization that involves commercial activities. the main aim of the businesses…

Q: Define shareholder agreement. Explain how it is different to articles of association

A: The articles of association are a legal document that defines a company's objective and lays out the…

Q: 46. The allocation of owner's private expenses to his/her business violates which of the following?…

A: Accounting principles means the fundamental upon which the whole accounting is based. Every entity…

Q: Explain the key steps in the acquisition method in accounting for business combination. Why Fair…

A: Business Combination- It is a situation when an entity acquires the business of other entity or…

Q: What is the difference between a covenant not to compete in a contract versus a covenant not to…

A: Covenant A covenant is a formal legal agreement between two parties for doing or not doing some…

Q: Which Business Form Has The Advantage Af Limiled Liability?

A: Limited liability is a legal principle that protects business owners from being personally…

Q: What are variable interests in an entity and how might they provide financial control over an…

A: Variable interest is referred as the interest rate on loan or security that differ over the period…

Q: A benefit of a sole proprietorship is that liability is limited to that of the business financial…

A: A sole proprietorship is the simplest form of business that an individual can do or operate. It is…

Q: What are some of the main differnces between IFRS and ASPE for business combinations?

A: The International Financial Reporting Standards (IFRS) and Accounting Standards for Private…

Q: Which of the following is NOT a form of ownership that the entrepreneur should consider? a. Sole…

A: Partnership can be defined as an agreement in which two or more parties agrees to share profits and…

Q: Explain what the separate entity assumption means whenit says a business is treated as separate from…

A: Accounting Assumption The accounting assumptions are the columns on which the accounting system is…

Q: Which accounting principle states that companies and owner should be treated as separate entities

A: A company is formed by the owner of the company but the owner is treated as separate entities and…

Q: What advantages does a sole proprietor offer? What is a major drawback of this type of organization?

A: It is a type of organization that is owed, run and managed by a single individual. In sole…