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. Physio Products does not pay income taxes and has one owner. The owner has unlimited liability for business debt.
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. Physio Products does not pay income taxes and has one owner. The owner has unlimited liability for business debt.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
anwser D E F G H
!["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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb022cb95-7be6-4190-9010-3f028cf21377%2F647f49ea-f243-45e9-95b0-4f567d258731%2Fide6rkf_processed.png&w=3840&q=75)
Transcribed Image Text:"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.
![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."](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb022cb95-7be6-4190-9010-3f028cf21377%2F647f49ea-f243-45e9-95b0-4f567d258731%2F5ijxa3b_processed.png&w=3840&q=75)
Transcribed Image Text: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."
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
Step 1
Sole Proprietorship: It is the type of the business that is owned by the single individual who is personally liable for all losses and payables.
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