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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Recently, Abercrombie & Fitch has been implementing a turnaround strategy since its sales had been falling for the past few years (11% decrease in 2014, 8% in 2015, and just 3% in 2016.) One part of Abercrombie's new strategy has been to abandon its logo-adorned merchandise, replacing it with a subtler look. Abercrombie wrote down $20.6 million of inventory, including logo-adorned merchandise, during the year ending January 30, 2016. Some of this inventory dated back to late 2013. The write-down was net of the amount it would be able to recover selling the inventory at a discount. The write-down is significant; Abercrombie's reported net income after this write-down was $35.6 million. Interestingly, Abercrombie excluded the inventory write-down from its non-GAAP income measures presented to investors; GAAP earnings were also included in the same report. Question: What impact would the write-down of inventory have had on Abercrombie's assets, Liabilities, and Equity?

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.

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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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Check out a sample textbook solution

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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

See solution

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 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