A business can be done under any form of the business organization depending upon the requirement. A sole proprietorship is managed by a single person. The proprietor has unlimited liability and enjoys entire profits of the sole proprietorship. A partnership is the type of business form in which two or more persons engage in doing business for mutual benefits. A corporation is the type of business which is owned by its shareholders and they have limited liability. To Identify: Type of the business.

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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 6E

Summary Introduction

Concept Introduction:

A business can be done under any form of the business organization depending upon the requirement. A sole proprietorship is managed by a single person. The proprietor has unlimited liability and enjoys entire profits of the sole proprietorship. A partnership is the type of business form in which two or more persons engage in doing business for mutual benefits. A corporation is the type of business which is owned by its shareholders and they have limited liability.

To Identify: Type of the business.

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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 6E

Summary Introduction

Concept Introduction:

A business can be done under any form of the business organization depending upon the requirement. A sole proprietorship is managed by a single person. The proprietor has unlimited liability and enjoys entire profits of the sole proprietorship. A partnership is the type of business form in which two or more persons engage in doing business for mutual benefits. A corporation is the type of business which is owned by its shareholders and they have limited liability.

To Identify: Type of the 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 6E

Summary Introduction

Concept Introduction:

A business can be done under any form of the business organization depending upon the requirement. A sole proprietorship is managed by a single person. The proprietor has unlimited liability and enjoys entire profits of the sole proprietorship. A partnership is the type of business form in which two or more persons engage in doing business for mutual benefits. A corporation is the type of business which is owned by its shareholders and they have limited liability.

To Identify: Type of the business.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

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 6E

Summary Introduction