Forms of Organization There are different types of business organization as per their nature of the formation. The following are the different types of organization: Forms of Business Organization Figure (1) To identify: The form of business organization as per the given situations.

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Answer 1

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Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 1, Problem 1.1AP

(a)

To determine

Introduction:

Forms of Organization

There are different types of business organization as per their nature of the formation. The following are the different types of organization:

Forms of Business Organization

Figure (1)

To identify: The form of business organization as per the given situations.

(b)

To determine

Sole Proprietorship: An entity which is completely owned by a single person and that person is running the business solely is called sole proprietorship organization. Each and every decision of the organization is taken by the owner and is also responsible for all types of business risks.

To identify: The form of business organization as per the given situations.

(c)

To determine

Corporation: A business concern where there is a separate legal entity and are owned by shareholders are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the corporation to its creditors is limited up to its available resources.

To identify: The form of business organization as per the given situations.

(d)

To determine

Partnership: Partnership firms are started by two or more individuals joining together. This form of partnership is very easy to establish and there is a shared control. The duties and formalities of the concern are formalized by making a partnership agreement. In this type of company, individuals with similar interest join together and startup a business. As previously stated for sole proprietorship, partnership firms too enjoy tax advantages.

To identify: The form of business organization as per the given situations.

(e)

To determine

Corporation: A business concern where there is a separate legal entity and are owned by shareholders are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the corporation to its creditors is limited up to its available resources.

To identify: The form of business organization as per the given situations.

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The following financial statement information is from five separate companies. Beginning of year Assets Liabilities Compan Compan Compan Compan Compan УА y B ус y D y E $ 55,000 $34,000 $24,000 $60,000 $1,19,00 24,500 21,500 9,000 40,000 ? End of year Assets Liabilities Changes during 58,000 40,000 ? 85,000 1,13,000 ? 26,500 29,000 24,000 70,000 the year Owner 6,000 1,400 9,750 ? 6,500 investments Net income (loss) 8,500 ? 8,000 14,000 20,000 Owner 3,500 2,000 5,875 0 11,000 withdrawals Compute the amount of liabilities for Company E at the beginning of the year. End of the year Assets = Liabilities + Equity $ 1,13,000 = $ 70,000 + $ 43,000 Statement of Owner's equity Equity, beginning of year $ 43,000 Add: Investment by owner 6,500 Add: Net Income 20,000 69,500 Less: Withdrawal by owner 11,000 Equity, end of year ?

Answer 2

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Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 1, Problem 1.1AP

(a)

To determine

Introduction:

Forms of Organization

There are different types of business organization as per their nature of the formation. The following are the different types of organization:

Forms of Business Organization

Figure (1)

To identify: The form of business organization as per the given situations.

(b)

To determine

Sole Proprietorship: An entity which is completely owned by a single person and that person is running the business solely is called sole proprietorship organization. Each and every decision of the organization is taken by the owner and is also responsible for all types of business risks.

To identify: The form of business organization as per the given situations.

(c)

To determine

Corporation: A business concern where there is a separate legal entity and are owned by shareholders are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the corporation to its creditors is limited up to its available resources.

To identify: The form of business organization as per the given situations.

(d)

To determine

Partnership: Partnership firms are started by two or more individuals joining together. This form of partnership is very easy to establish and there is a shared control. The duties and formalities of the concern are formalized by making a partnership agreement. In this type of company, individuals with similar interest join together and startup a business. As previously stated for sole proprietorship, partnership firms too enjoy tax advantages.

To identify: The form of business organization as per the given situations.

(e)

To determine

Corporation: A business concern where there is a separate legal entity and are owned by shareholders are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the corporation to its creditors is limited up to its available resources.

To identify: The form of business organization as per the given situations.

Expert Solution & Answer

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Answer 3

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 1, Problem 1.1AP

(a)

To determine

Introduction:

Forms of Organization

There are different types of business organization as per their nature of the formation. The following are the different types of organization:

Forms of Business Organization

Figure (1)

To identify: The form of business organization as per the given situations.

(b)

To determine

Sole Proprietorship: An entity which is completely owned by a single person and that person is running the business solely is called sole proprietorship organization. Each and every decision of the organization is taken by the owner and is also responsible for all types of business risks.

To identify: The form of business organization as per the given situations.

(c)

To determine

Corporation: A business concern where there is a separate legal entity and are owned by shareholders are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the corporation to its creditors is limited up to its available resources.

To identify: The form of business organization as per the given situations.

(d)

To determine

Partnership: Partnership firms are started by two or more individuals joining together. This form of partnership is very easy to establish and there is a shared control. The duties and formalities of the concern are formalized by making a partnership agreement. In this type of company, individuals with similar interest join together and startup a business. As previously stated for sole proprietorship, partnership firms too enjoy tax advantages.

To identify: The form of business organization as per the given situations.

(e)

To determine

Corporation: A business concern where there is a separate legal entity and are owned by shareholders are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the corporation to its creditors is limited up to its available resources.

To identify: The form of business organization as per the given situations.

Expert Solution & Answer

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Answer 4

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 1, Problem 1.1AP

(a)

To determine

Introduction:

Forms of Organization

There are different types of business organization as per their nature of the formation. The following are the different types of organization:

Forms of Business Organization

Figure (1)

To identify: The form of business organization as per the given situations.

(b)

To determine

Sole Proprietorship: An entity which is completely owned by a single person and that person is running the business solely is called sole proprietorship organization. Each and every decision of the organization is taken by the owner and is also responsible for all types of business risks.

To identify: The form of business organization as per the given situations.

(c)

To determine

Corporation: A business concern where there is a separate legal entity and are owned by shareholders are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the corporation to its creditors is limited up to its available resources.

To identify: The form of business organization as per the given situations.

(d)

To determine

Partnership: Partnership firms are started by two or more individuals joining together. This form of partnership is very easy to establish and there is a shared control. The duties and formalities of the concern are formalized by making a partnership agreement. In this type of company, individuals with similar interest join together and startup a business. As previously stated for sole proprietorship, partnership firms too enjoy tax advantages.

To identify: The form of business organization as per the given situations.

(e)

To determine

Corporation: A business concern where there is a separate legal entity and are owned by shareholders are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the corporation to its creditors is limited up to its available resources.

To identify: The form of business organization as per the given situations.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 1, Problem 1.1AP

(a)

To determine

Introduction:

Forms of Organization

There are different types of business organization as per their nature of the formation. The following are the different types of organization:

Forms of Business Organization

Figure (1)

To identify: The form of business organization as per the given situations.

(b)

To determine

Sole Proprietorship: An entity which is completely owned by a single person and that person is running the business solely is called sole proprietorship organization. Each and every decision of the organization is taken by the owner and is also responsible for all types of business risks.

To identify: The form of business organization as per the given situations.

(c)

To determine

Corporation: A business concern where there is a separate legal entity and are owned by shareholders are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the corporation to its creditors is limited up to its available resources.

To identify: The form of business organization as per the given situations.

(d)

To determine

Partnership: Partnership firms are started by two or more individuals joining together. This form of partnership is very easy to establish and there is a shared control. The duties and formalities of the concern are formalized by making a partnership agreement. In this type of company, individuals with similar interest join together and startup a business. As previously stated for sole proprietorship, partnership firms too enjoy tax advantages.

To identify: The form of business organization as per the given situations.

(e)

To determine

Corporation: A business concern where there is a separate legal entity and are owned by shareholders are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the corporation to its creditors is limited up to its available resources.

To identify: The form of business organization as per the given situations.

Answer 6

Chapter 1, Problem 1.1AP

(a)

To determine

Introduction:

Forms of Organization

There are different types of business organization as per their nature of the formation. The following are the different types of organization:

Forms of Business Organization

Figure (1)

To identify: The form of business organization as per the given situations.

Answer 7

Chapter 1, Problem 1.1AP

(a)

To determine

Introduction:

Forms of Organization

There are different types of business organization as per their nature of the formation. The following are the different types of organization:

Forms of Business Organization

Figure (1)

To identify: The form of business organization as per the given situations.

Answer 8

(b)

To determine

Sole Proprietorship: An entity which is completely owned by a single person and that person is running the business solely is called sole proprietorship organization. Each and every decision of the organization is taken by the owner and is also responsible for all types of business risks.

To identify: The form of business organization as per the given situations.

Answer 9

(b)

To determine

Sole Proprietorship: An entity which is completely owned by a single person and that person is running the business solely is called sole proprietorship organization. Each and every decision of the organization is taken by the owner and is also responsible for all types of business risks.

To identify: The form of business organization as per the given situations.

Answer 10

(c)

To determine

Corporation: A business concern where there is a separate legal entity and are owned by shareholders are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the corporation to its creditors is limited up to its available resources.

To identify: The form of business organization as per the given situations.

Answer 11

(c)

To determine

Corporation: A business concern where there is a separate legal entity and are owned by shareholders are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the corporation to its creditors is limited up to its available resources.

To identify: The form of business organization as per the given situations.

Answer 12

(d)

To determine

Partnership: Partnership firms are started by two or more individuals joining together. This form of partnership is very easy to establish and there is a shared control. The duties and formalities of the concern are formalized by making a partnership agreement. In this type of company, individuals with similar interest join together and startup a business. As previously stated for sole proprietorship, partnership firms too enjoy tax advantages.

To identify: The form of business organization as per the given situations.

Answer 13

(d)

To determine

Partnership: Partnership firms are started by two or more individuals joining together. This form of partnership is very easy to establish and there is a shared control. The duties and formalities of the concern are formalized by making a partnership agreement. In this type of company, individuals with similar interest join together and startup a business. As previously stated for sole proprietorship, partnership firms too enjoy tax advantages.

To identify: The form of business organization as per the given situations.

Answer 14

(e)

To determine

Corporation: A business concern where there is a separate legal entity and are owned by shareholders are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the corporation to its creditors is limited up to its available resources.

To identify: The form of business organization as per the given situations.

Answer 15

(e)

To determine

Corporation: A business concern where there is a separate legal entity and are owned by shareholders are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the corporation to its creditors is limited up to its available resources.

To identify: The form of business organization as per the given situations.

Answer 16

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Answer 17

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Answer 18

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Answer 19

Ch. 1 - Prob. 1Q Ch. 1 - Prob. 2Q Ch. 1 - Prob. 3Q Ch. 1 - Accounting is ingrained in our society and is...Ch. 1 - Prob. 5Q Ch. 1 - Prob. 6Q Ch. 1 - What are the three main types of business...Ch. 1 - Prob. 8Q Ch. 1 - Prob. 9Q Ch. 1 - Prob. 10Q

Forms of Organization There are different types of business organization as per their nature of the formation. The following are the different types of organization: Forms of Business Organization Figure (1) To identify: The form of business organization as per the given situations.

Solution Summary: The author explains the different types of business organization, such as partnership, sole proprietorship, and corporation.

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Chapter 1 Solutions

Forms of Organization There are different types of business organization as per their nature of the formation. The following are the different types of organization: Forms of Business Organization Figure (1) To identify: The form of business organization as per the given situations.

Solution Summary: The author explains the different types of business organization, such as partnership, sole proprietorship, and corporation.

Concept explainers

Videos

Introduction: Forms of Organization There are different types of business organization as per their nature of the formation. The following are the different types of organization: Forms of Business Organization Figure (1) To identify: The form of business organization as per the given situations.

Want to see the full answer?

Chapter 1 Solutions