Which of the following is a distinguishing feature of a limited liability partnership? Question 10 options: a) It is intended to address theconcerns of professionals who are not permitted to form corporations. b) It is a form of business that is not yet available in Canada. c)Its partners are shareholders. d) The liability of some of the partners is limited to their capital contribution.

The question is asking to identify the unique characteristic of a Limited Liability Partnership…

Answered: Which of the following is a…

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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Which of the following is a disadvantage of general partnerships? a) A partner who withdraws from a partnership cannot be held liable for any debts the firm had at the time of withdrawal. b) Compared to the other forms of ownership, the paperwork and costs involved in forming a general partnership are the most extensive. c) All general partners have unlimited liability for the debts and obligations of their business. d) The partners in a general partnership are exposed to double taxation.
QUESTION 1 Please provide True / False responses to the following statements: i. In Ghana, a company cannot be formed by one (1) person (True / False) The law regulating the operations of partnerships in Ghana is the Incorporated Private Partnership Act 1962 (Act 179) (True / False) The maximum number of partners in a partnership business is twenty (20) (True / False) To become a partner in a partnership business, one needs to subscribe to shares of the partnership (True / False) Working Capital is a term meaning the excess of the current assets over the current liabilities (True / False) Given opening accounts receivables of GHS11,500, sales of GHS48,000 and receipts from debtors of GHS45,000, the closing debtors should total GHS14,500 (True / False) Any loss on revaluation is debited to old partners in old profit and loss sharing ratio (True / False) Goodwill is an example of an intangible non-current asset (True / False) Purchased goodwill is the same as internally generated…
Which of the following statements is most true? a. The liability for other partners’ wrong doings is limited to the amount a particular partner has invested in the partnership. b. Partnerships are formed in accordance with specific guidelines that include the filing of a formal written agreement to the government. c. A fast growing firm would be more probable to establish a partnership as its business form than would a slow growing firm. d.Corporations can easier attract investors than those of the partnership and sole proprietor businesses.
Chris Gray, Bryson Alef, and Nick Pirollo are founding partners of their company, Scholly. Assume that Chris, Bryson, and Nick decide to expand their business with the help of general partners. Required 1. What details should Chris, Bryson, Nick, and their future partners specify in the general partnership agreements? 2. What advantages should Chris, Bryson, Nick, and their future partners be aware of with respect to organizing as a general partnership? 3. What disadvantages should Chris, Bryson, Nick, and their future partners be aware of with respect to organizing as a general partnership?
Question One: State whether each of the following statements is true or false and correct the false statements: 1. General partnerships are not subject to taxes on its income. 2. Double taxation is one of the major disadvantages of partnerships. 3. In limited partnerships limited partner has the right to manage the business. 4. Mutual agency does not exist in partnerships. 5. Corporations can be formed by a verbal agreement.
Question 2 Which of the following are imposed rules on general partnerships? Each general partner is considered to be an agent for the partnership and for each partner, as long as the partner is acting in a business-related matter. Each general partner is personally liable, without limit, for torts or contracts if the partnership has insufficient assets to cover the debt or liability. Each general partner is expected to devote service only to the partnership and not to any competing business ventures. O All of the above.
If a partnership is liquidated, partners ( except for limited partners) are liable to the extent of their personal assets. In case a Corporation becane insolvent and decided to liquidate, would the owners (sharehorlders) also liable to the extend of their personal assets?
1. The following are advantages of a partnership over a sole proprietorship, except: * -Capacity to act as legal unit -Ease of formation -Higher feasibility of greater undertakings -Better management -answer not given 2.The following are true for both general and limited partnership, except: -Both have at least one general partner -Both can easily be dissolved -All partners have the right to share in partnership profits -All partners are liable for all debts of the partnership -Answer not given 3.[S1] Joint ownership of properties means that all assets invested by individual partners is owned by the partnership. [S2] Mutual agency means that each partner can make binding agreements for the partnership. -Both are true -both are false -S1 is true -S2 is true 4. When the partnership assets are not sufficient to pay its debts: * A. limited partners are not personally liable for the debts B. general…
How do the asset and liability sections of the balance sheet differ for a partnership versus other forms of businesses (corporation, sole proprietorship)? Question 1 options: The equity section reports a separate capital account for each partner. The assets and liability sections do not differ between partnerships and other forms of business. The assets and liabilities are assigned to the individual partners. The assets tend to be higher and the liabilities tend to be lower for a partnership.
A general partner in a partnership * has unlimited liability for all partnership debts. is always the general manager of the firm. is the partner who lacks a specialization. is liable for partnership liabilities only to the extent of that partner's capital equity.
According to this Chapter on Partnerships, are the following statements True or False: Question 1: A partnership allows owners to pool their talents and resources. A. True B. False Question 2: In a partnership, the income is taxed at the partnership level as well as at the personal level of the owners. A. True B. False Question 3: Mutual agency means that any partner can legally bind the other partners and the partnership to business contracts within the scope of the business's regular operations. A. True B. False
Select the best answer. Which of the following statements regarding various entities is true? O O O A. A business entity with only one owner is classified as a corporation or is disregarded. ion Q 10 B. A disadvantage of a pass-through entity is double taxation. C. By default, an eligible entity that has a single member will be treated as a limited partnership. Partnerships are taxpaying entities, because tax attributes pass through to the individual partners. O D. Submit Answers 100% Complete Exit

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