The business entity assumption means the business is accounted for separately from its owner and other business entities. A business entity can take on three legal forms, such as sole proprietorship, partnership , and corporation. Whether the given description refers to proprietorship, partnership, corporation, or LLC.

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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

Concept Introduction: The business entity assumption means the business is accounted for separately from its owner and other business entities. A business entity can take on three legal forms, such as sole proprietorship, partnership, and corporation.

Whether the given description refers to proprietorship, partnership, corporation, or LLC.

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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

Concept Introduction: The business entity assumption means the business is accounted for separately from its owner and other business entities. A business entity can take on three legal forms, such as sole proprietorship, partnership, and corporation.

Whether the given description refers to proprietorship, partnership, corporation, or LLC.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

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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

Concept Introduction: The business entity assumption means the business is accounted for separately from its owner and other business entities. A business entity can take on three legal forms, such as sole proprietorship, partnership, and corporation.

Whether the given description refers to proprietorship, partnership, corporation, or LLC.

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