Proprietorship: A proprietorship refers to a business model in which an individual and the business entity are one and the same. The individual who runs the business is solely responsible for all the income and losses that the business encounters. The business has no separate legal existence for tax purposes. Partnership : A partnership is a type of business model in which two or more individuals with a set of common goals unite to setup a business entity by mutually stating and agreeing on the terms and conditions of running the business entity such as investments, sharing of risk and rewards etc. usually through a partnership deed or an agreement Corporation: Corporations are business organizations that are setup by a group of individuals having common goals in adherence with the legal requirements which deem it to be a separate legal entity. The stake holders or share holders are deemed to be the real owners of the company who share the profit or loss. Corporations have a separate legal existence with a name, seal etc for legal and taxation purposes. To write: The attributes of proprietorship, partnership and corporation.

Question

Want to see the full answer?

Answer 1

Question

Chapter 1, Problem 5QS

To determine

Concept Introduction:

Proprietorship: A proprietorship refers to a business model in which an individual and the business entity are one and the same. The individual who runs the business is solely responsible for all the income and losses that the business encounters. The business has no separate legal existence for tax purposes.

Partnership: A partnership is a type of business model in which two or more individuals with a set of common goals unite to setup a business entity by mutually stating and agreeing on the terms and conditions of running the business entity such as investments, sharing of risk and rewards etc. usually through a partnership deed or an agreement

Corporation: Corporations are business organizations that are setup by a group of individuals having common goals in adherence with the legal requirements which deem it to be a separate legal entity. The stake holders or share holders are deemed to be the real owners of the company who share the profit or loss. Corporations have a separate legal existence with a name, seal etc for legal and taxation purposes.

To write: The attributes of proprietorship, partnership and corporation.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Referring to section “The WH Framework for Business Ethics” of Ch. 2, “Business Ethics” of Dynamic Business Law for information on the WH Framework. Reviewing the scenario and complete the activity below. This scenario can also be found in the “Questions & Problems” section of Ch. 2, “Business Ethics” in Dynamic Business Law. Scenerio Steven J. Trzaska was the head of L’Oreal USA’s regional patent team, managing the procedure by which the company patented products. As an attorney barred in Pennsylvania, Trzaska had to adhere to professional rules of conduct established by the Supreme Court of Pennsylvania in addition to rules promulgated by the US Patent and Trademark Office (USPTO). In 2014, L’Oreal S.A., the French parent company of L’Oreal USA, enacted a global quota of patent applications each regional office had to file each year. Employees were informed that failure to meet the quota would negatively impact their careers and even their continued employment at L’Oreal.…

Not use ai solution please and accounting question

I need assistance with this financial accounting problem using appropriate calculation techniques.