The three types of business organizations, merits and demerits of each organizations and what form of business take more start-up and why.

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Answer 1

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 1CQ

Summary Introduction

To discuss: The three types of business organizations, merits and demerits of each organizations and what form of business take more start-up and why.

Expert Solution & Answer

Explanation of Solution

The three types of business organizations is as follows:

Sole proprietorship
Partnership
Corporation

The advantages of sole proprietorship is as follows:

Less paper work
Simplified tax setup
Lesser business fees
Less cost of formation
Simplified business proprietorship

The advantages of partnership is as follows:

Less cost of formation.
More cash
More opportunities to business
Cost savings

The advantages of corporation is as follows:

Limited liability
Easy to transfer ownership
Admittance to capital market
Continuous existence

The disadvantages of sole proprietorship is as follows:

Difficulty in contributing large capital
Restricted life
Liability is unlimited

The disadvantages of partnership is as follows:

Liability is unlimited
Restricted life
Difficulty in transmitting ownership

The disadvantages of corporation is as follows:

Double taxation of incomes
Obligation to file state and federal reports for registering is expensive
Complex and time consuming

In case of starting a new business, the most take form is partnership or sole proprietorship for the reason that it is very easy to start these types of business.

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Answer 2

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 1CQ

Summary Introduction

To discuss: The three types of business organizations, merits and demerits of each organizations and what form of business take more start-up and why.

Expert Solution & Answer

Explanation of Solution

The three types of business organizations is as follows:

Sole proprietorship
Partnership
Corporation

The advantages of sole proprietorship is as follows:

Less paper work
Simplified tax setup
Lesser business fees
Less cost of formation
Simplified business proprietorship

The advantages of partnership is as follows:

Less cost of formation.
More cash
More opportunities to business
Cost savings

The advantages of corporation is as follows:

Limited liability
Easy to transfer ownership
Admittance to capital market
Continuous existence

The disadvantages of sole proprietorship is as follows:

Difficulty in contributing large capital
Restricted life
Liability is unlimited

The disadvantages of partnership is as follows:

Liability is unlimited
Restricted life
Difficulty in transmitting ownership

The disadvantages of corporation is as follows:

Double taxation of incomes
Obligation to file state and federal reports for registering is expensive
Complex and time consuming

In case of starting a new business, the most take form is partnership or sole proprietorship for the reason that it is very easy to start these types of business.

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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 1CQ

Summary Introduction

To discuss: The three types of business organizations, merits and demerits of each organizations and what form of business take more start-up and why.

Expert Solution & Answer

Explanation of Solution

The three types of business organizations is as follows:

Sole proprietorship
Partnership
Corporation

The advantages of sole proprietorship is as follows:

Less paper work
Simplified tax setup
Lesser business fees
Less cost of formation
Simplified business proprietorship

The advantages of partnership is as follows:

Less cost of formation.
More cash
More opportunities to business
Cost savings

The advantages of corporation is as follows:

Limited liability
Easy to transfer ownership
Admittance to capital market
Continuous existence

The disadvantages of sole proprietorship is as follows:

Difficulty in contributing large capital
Restricted life
Liability is unlimited

The disadvantages of partnership is as follows:

Liability is unlimited
Restricted life
Difficulty in transmitting ownership

The disadvantages of corporation is as follows:

Double taxation of incomes
Obligation to file state and federal reports for registering is expensive
Complex and time consuming

In case of starting a new business, the most take form is partnership or sole proprietorship for the reason that it is very easy to start these types of business.

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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 1CQ

Summary Introduction

To discuss: The three types of business organizations, merits and demerits of each organizations and what form of business take more start-up and why.

Expert Solution & Answer

Explanation of Solution

The three types of business organizations is as follows:

Sole proprietorship
Partnership
Corporation

The advantages of sole proprietorship is as follows:

Less paper work
Simplified tax setup
Lesser business fees
Less cost of formation
Simplified business proprietorship

The advantages of partnership is as follows:

Less cost of formation.
More cash
More opportunities to business
Cost savings

The advantages of corporation is as follows:

Limited liability
Easy to transfer ownership
Admittance to capital market
Continuous existence

The disadvantages of sole proprietorship is as follows:

Difficulty in contributing large capital
Restricted life
Liability is unlimited

The disadvantages of partnership is as follows:

Liability is unlimited
Restricted life
Difficulty in transmitting ownership

The disadvantages of corporation is as follows:

Double taxation of incomes
Obligation to file state and federal reports for registering is expensive
Complex and time consuming

In case of starting a new business, the most take form is partnership or sole proprietorship for the reason that it is very easy to start these types of business.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 1, Problem 1CQ

Summary Introduction

To discuss: The three types of business organizations, merits and demerits of each organizations and what form of business take more start-up and why.

Expert Solution & Answer

Explanation of Solution

The three types of business organizations is as follows:

Sole proprietorship
Partnership
Corporation

The advantages of sole proprietorship is as follows:

Less paper work
Simplified tax setup
Lesser business fees
Less cost of formation
Simplified business proprietorship

The advantages of partnership is as follows:

Less cost of formation.
More cash
More opportunities to business
Cost savings

The advantages of corporation is as follows:

Limited liability
Easy to transfer ownership
Admittance to capital market
Continuous existence

The disadvantages of sole proprietorship is as follows:

Difficulty in contributing large capital
Restricted life
Liability is unlimited

The disadvantages of partnership is as follows:

Liability is unlimited
Restricted life
Difficulty in transmitting ownership

The disadvantages of corporation is as follows:

Double taxation of incomes
Obligation to file state and federal reports for registering is expensive
Complex and time consuming

In case of starting a new business, the most take form is partnership or sole proprietorship for the reason that it is very easy to start these types of business.

Answer 6

Chapter 1, Problem 1CQ

Summary Introduction

To discuss: The three types of business organizations, merits and demerits of each organizations and what form of business take more start-up and why.

Expert Solution & Answer

Explanation of Solution

The three types of business organizations is as follows:

Sole proprietorship
Partnership
Corporation

The advantages of sole proprietorship is as follows:

Less paper work
Simplified tax setup
Lesser business fees
Less cost of formation
Simplified business proprietorship

The advantages of partnership is as follows:

Less cost of formation.
More cash
More opportunities to business
Cost savings

The advantages of corporation is as follows:

Limited liability
Easy to transfer ownership
Admittance to capital market
Continuous existence

The disadvantages of sole proprietorship is as follows:

Difficulty in contributing large capital
Restricted life
Liability is unlimited

The disadvantages of partnership is as follows:

Liability is unlimited
Restricted life
Difficulty in transmitting ownership

The disadvantages of corporation is as follows:

Double taxation of incomes
Obligation to file state and federal reports for registering is expensive
Complex and time consuming

In case of starting a new business, the most take form is partnership or sole proprietorship for the reason that it is very easy to start these types of business.

Answer 7

Chapter 1, Problem 1CQ

Summary Introduction

To discuss: The three types of business organizations, merits and demerits of each organizations and what form of business take more start-up and why.

Answer 8

Expert Solution & Answer

Explanation of Solution

The three types of business organizations is as follows:

Sole proprietorship
Partnership
Corporation

The advantages of sole proprietorship is as follows:

Less paper work
Simplified tax setup
Lesser business fees
Less cost of formation
Simplified business proprietorship

The advantages of partnership is as follows:

Less cost of formation.
More cash
More opportunities to business
Cost savings

The advantages of corporation is as follows:

Limited liability
Easy to transfer ownership
Admittance to capital market
Continuous existence

The disadvantages of sole proprietorship is as follows:

Difficulty in contributing large capital
Restricted life
Liability is unlimited

The disadvantages of partnership is as follows:

Liability is unlimited
Restricted life
Difficulty in transmitting ownership

The disadvantages of corporation is as follows:

Double taxation of incomes
Obligation to file state and federal reports for registering is expensive
Complex and time consuming

In case of starting a new business, the most take form is partnership or sole proprietorship for the reason that it is very easy to start these types of business.