Sole proprietorship (SP): When single person start a business it is sole proprietorship kind of business. This is one of the common forms of business organization. In this type of business organization all the decisions related to the sale, purchase, expenses, distribution of goods and many more business activities are conducted by the owner of the sole proprietorship firm. Partnership (P): When two or more people want to start the same business, they became partners and start partnership firm. The partnership firm follows the rule and the promises mention in the partnership deed. There is no compulsion to register the partnership firm. Corporation (C): A corporation is a company or group of company to perform a business activity The Corporation may be profit making or non-profit making but most of the attributes are same. A corporation has to be registered under the law of the country. To identify: The given statements come under sole proprietorship (SP), partnership (P), or Corporation (C).

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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 6E

To determine

Sole proprietorship (SP):

When single person start a business it is sole proprietorship kind of business. This is one of the common forms of business organization. In this type of business organization all the decisions related to the sale, purchase, expenses, distribution of goods and many more business activities are conducted by the owner of the sole proprietorship firm.

Partnership (P):

When two or more people want to start the same business, they became partners and start partnership firm. The partnership firm follows the rule and the promises mention in the partnership deed. There is no compulsion to register the partnership firm.

Corporation (C):

A corporation is a company or group of company to perform a business activity The Corporation may be profit making or non-profit making but most of the attributes are same. A corporation has to be registered under the law of the country.

To identify:

The given statements come under sole proprietorship (SP), partnership (P), or Corporation (C).

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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

To determine

Sole proprietorship (SP):

When single person start a business it is sole proprietorship kind of business. This is one of the common forms of business organization. In this type of business organization all the decisions related to the sale, purchase, expenses, distribution of goods and many more business activities are conducted by the owner of the sole proprietorship firm.

Partnership (P):

When two or more people want to start the same business, they became partners and start partnership firm. The partnership firm follows the rule and the promises mention in the partnership deed. There is no compulsion to register the partnership firm.

Corporation (C):

A corporation is a company or group of company to perform a business activity The Corporation may be profit making or non-profit making but most of the attributes are same. A corporation has to be registered under the law of the country.

To identify:

The given statements come under sole proprietorship (SP), partnership (P), or Corporation (C).

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Check out a sample textbook solution

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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

To determine

Sole proprietorship (SP):

When single person start a business it is sole proprietorship kind of business. This is one of the common forms of business organization. In this type of business organization all the decisions related to the sale, purchase, expenses, distribution of goods and many more business activities are conducted by the owner of the sole proprietorship firm.

Partnership (P):

When two or more people want to start the same business, they became partners and start partnership firm. The partnership firm follows the rule and the promises mention in the partnership deed. There is no compulsion to register the partnership firm.

Corporation (C):

A corporation is a company or group of company to perform a business activity The Corporation may be profit making or non-profit making but most of the attributes are same. A corporation has to be registered under the law of the country.

To identify:

The given statements come under sole proprietorship (SP), partnership (P), or Corporation (C).

Expert Solution & Answer

Want to see the full answer?

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

To determine