Financial Accounting: Tools for Business Decision Making, 8th Edition
8th Edition
ISBN: 9781118953808
Author: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Publisher: WILEY
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Question
Chapter 1, Problem 1.1BE
To determine
Introduction:
The business organization consists of three basic forms of business organizations as shown in the below figure:
Forms of Business Organization
Figure (1)
To match: The forms of basic business organization and the set of characteristics related to basic forms of business organization.
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Students have asked these similar questions
Q: Compare the characteristics of organizational and legal forms of enterprises:
Criteria
The organizational and legal form
Individual entrepreneur
Economic partnership
(LLC)
Economic society
(JSC)
Simplicity of the creation
Control over the activities
Liability of the owners
Investment Liquidity*
Period of existence
Give the pros and cons of using partnership, corporation and any other forms in establishing own accounting firm.
Refer to Chapter 11-1A, page 619: Characteristics of sole proprietorships, partnerships, and corporations
Required
The three primary types of business organization are proprietorship, partnership, and corporation. Each type has characteristics that distinguish it from the other types. In the left column of the following table write the name of the type of business organization that is most likely to possess the characteristic that is described in the right column of the table. The first item is shown as an example.
Business Type
Characteristic
Proprietorship
Owned and operated by a single individual
Subject to double taxation
Has a retained earnings account on its balance sheet
One owner may be held personally liable for actions taken on behalf of the business by different owner
Profits benefit a single individual
Frequently uses legal agreements to define profit distribution for two or more owners
Most highly regulated form of business
The business dissolves with the death of its only…
Chapter 1 Solutions
Financial Accounting: Tools for Business Decision Making, 8th Edition
Ch. 1 - Prob. 1QCh. 1 - Prob. 2QCh. 1 - Prob. 3QCh. 1 - Accounting is ingrained in our society and is...Ch. 1 - Prob. 5QCh. 1 - Prob. 6QCh. 1 - What are the three main types of business...Ch. 1 - Prob. 8QCh. 1 - Prob. 9QCh. 1 - Prob. 10Q
Ch. 1 - Prob. 11QCh. 1 - What are the three main categories of the...Ch. 1 - Prob. 13QCh. 1 - Prob. 14QCh. 1 - Prob. 15QCh. 1 - Which of these items are liabilities of White...Ch. 1 - How are each of the following financial statements...Ch. 1 - What is the purpose of the management discussion...Ch. 1 - Prob. 19QCh. 1 - Prob. 20QCh. 1 - Prob. 21QCh. 1 - Prob. 1.1BECh. 1 - Match each of the following types of evaluation...Ch. 1 - Indicate in which part of the statement of cash...Ch. 1 - Prob. 1.4BECh. 1 - Prob. 1.5BECh. 1 - Prob. 1.6BECh. 1 - Indicate which statement you would examine to find...Ch. 1 - Prob. 1.8BECh. 1 - Prob. 1.9BECh. 1 - Prob. 1.10BECh. 1 - Prob. 1.11BECh. 1 - Prob. 1.1DIECh. 1 - Prob. 1.2DIECh. 1 - Prob. 1.3ADIECh. 1 - Prob. 1.3BDIECh. 1 - Here is a list of words or phi uses discussed in...Ch. 1 - Prob. 1.3ECh. 1 - Prob. 1.4ECh. 1 - Prob. 1.5ECh. 1 - Prob. 1.6ECh. 1 - Prob. 1.7ECh. 1 - Prob. 1.8ECh. 1 - Prob. 1.9ECh. 1 - Prob. 1.10ECh. 1 - Prob. 1.11ECh. 1 - Prob. 1.12ECh. 1 - Prob. 1.13ECh. 1 - Prob. 1.14ECh. 1 - Prob. 1.15ECh. 1 - Prob. 1.16ECh. 1 - Prob. 1.17ECh. 1 - Prob. 1.1APCh. 1 - Financial decisions often place heavier emphasis...Ch. 1 - Prob. 1.3APCh. 1 - Prob. 1.4APCh. 1 - Prob. 1.5APCh. 1 - Prob. 1.1EYCTCh. 1 - Prob. 1.2EYCTCh. 1 - Prob. 1.3EYCTCh. 1 - INTERPRETING FINANCIAL STATEMENTS Xerox was not...Ch. 1 - Prob. 1.5EYCTCh. 1 - Prob. 1.6EYCTCh. 1 - Prob. 1.7EYCTCh. 1 - Prob. 1.8EYCTCh. 1 - Prob. 1.9EYCTCh. 1 - Prob. 1.10EYCTCh. 1 - Prob. 1.1IFRSCh. 1 - Prob. 1.2IFRSCh. 1 - Prob. 1.3IFRS
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Similar questions
- Based on the advantages and disadvantages of each of the following forms of businesses, give an example of a business that would be best suited to that particular form. Be sure to explain why that is the best option for the particular business. (1) Sole proprietorship (2) Limited partnership (3) Corporation (4) Limited Liability Companyarrow_forwardWhich business vehicle(Company or partnership) you will adopt if you are to set up a business and give reasons to support your choice.arrow_forwardCompare and contrast the forms of business organization. Sole/Single Proprietorship Partnership Corporation Cooperativesarrow_forward
- What is the primary goal of financial management in a corporation?A. Maximizing sales revenueB. Minimizing expensesC. Maximizing shareholder wealthD. Maximizing employee satisfactionarrow_forwardIdentify one advantage of corporate form of business over a proprietorshiparrow_forwardDiscuss the different types of business structures and compare and contrast these different structures (Corporate, Sole Proprietorship, Limited Liability),arrow_forward
- Task Two Define the following terms: 'stakeholder'; 'shareholder' and 'stakeholder analysis'. Using a named real company of your choice, demonstrate how you would apply the stakeholder analysis process to identify the company's stakeholder groups and evaluate their needs and influence.arrow_forward■ What are the key differences between proprietorships, partnerships,and corporations? Be sure to describe the advantages anddisadvantages of each.arrow_forwardAs the manager of a corporation you decided to open a new branch abroad. Which of the following terms fit best for the decision you made? Select one: a.Controller b.Capital budgeting c.Profit maximization d.Partnershiparrow_forward
- Which of the following is true about an organizational structure? It is either a sole proprietorship, a partnership, or a corporation. It is similar for most companies. It is the framework by which a group is organized. O It is typically inflexible and centralized.arrow_forwardWhich of the following statements is correct? Group of answer choices Corporations and partnerships have an advantage over proprietorships because a sole proprietor is subject to unlimited liability, but investors in the other types of businesses are not. Firms in highly competitive industries find it easier to exercise "social responsibility" than do firms in oligopolistic industries. A good goal for a corporate manager is maximization of expected EPS. A good example of an agency relationship is the one between stockholders and managers. Most business in the U.S. is conducted by corporations; corporations' popularity results primarily from their favorable tax treatment.arrow_forwardWhich of the following sets of characteristics can be attributed to a company? 1. Difficulty raising funds, owners have full control. 2. Separate legal entity and owners have limited liability. 3. Owners have shared control and unlimited liability. 4. Simple to set up and mutual agency.arrow_forward
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