Jordan and Carmen created a firm that is a separatelegal entity and will share ownership of that firm on a75/25 basis. Which type of entity did they create if theyhave no personal liability for the firm's debts?

A business has to be run in the form of a business organization. There are different types of…

Answered: Jordan and Carmen created a firm that…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Ted Hughes owns a plumbing business,which is run as a company called "Hughes Plumbing Pty Limited".Which one of the following is correct: A.None of the other answers are correct B.Ted Hughes and Hughes Plumbing Pty Limited are seperate legal entities from both an accounting and legal perspective C.Ted Hughes and Hughes Plumbing Pty Limited are not seperate entities,from either an accounting and legal perspective D.Ted Hughes and Hughes Plumbing Pty Limited RE separate entities from an accounting perspective,but not from a legal perspective E.Ted Hughes and Hughes Plumbing Pty Limited are separate entities from a legal perspective,but not from an accounting perspective
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Chen, Korhonen, Lebuca, and Swid are partners who share profits and losses on a 4:3:2:1 basis, respectively. They are beginning to liquidate the business. At the start of this process, capital balances are Chen, capital Korhonen, capital Lebuca, capital Swid, capital Required: $ 68,000 29,400 51,000 22,400 Prepare a predistribution plan to determine which partner will be the first to receive cash from the liquidation and what amount that partner will receive before other partners receive any cash. Note: Amounts to be deducted should be entered with a minus sign. Beginning balances Assumed loss Balances Assumed loss Balances Assumed loss Balances Chen Korhonen Lebuca Swid $ 68,000 $ 29,400 $ 51,000 $ 22,400

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Jordan and Carmen created a firm that is a separate legal entity and will share ownership of that firm on a 75/25 basis. Which type of entity did they create if they have no personal liability for the firm's debts?