Business entity : A business organization which is created by one or more persons and governed by state law. The following are the four types of business entities: Sole proprietorship : The form of business entity which is owned and managed by an individual is referred to as sole proprietorship. Partnership : The form of business entity which is formed by an agreement, owned and managed mutually by two or more individuals, who invest their assets in the business and share the liabilities and profits among themselves is referred to as partnership. Corporation : The form of business entity which is incorporated by state law into a separate legal entity, owned by stockholders, and managed by board of directors elected by stockholders is referred to as corporation. Limited-liability corporation (LLC) : The form of business entity which is unincorporated but functions as a corporate and the owners are called members or partners. So, LLC has both the features of corporation and partnership. To describe : The similarities and differences between sole proprietorship, partnership, corporation, and limited-liability corporation (LLC)

Question

Want to see the full answer?

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 7RQ

To determine

Business entity: A business organization which is created by one or more persons and governed by state law.

The following are the four types of business entities:

Sole proprietorship: The form of business entity which is owned and managed by an individual is referred to as sole proprietorship.

Partnership: The form of business entity which is formed by an agreement, owned and managed mutually by two or more individuals, who invest their assets in the business and share the liabilities and profits among themselves is referred to as partnership.

Corporation: The form of business entity which is incorporated by state law into a separate legal entity, owned by stockholders, and managed by board of directors elected by stockholders is referred to as corporation.

Limited-liability corporation (LLC): The form of business entity which is unincorporated but functions as a corporate and the owners are called members or partners. So, LLC has both the features of corporation and partnership.

To describe: The similarities and differences between sole proprietorship, partnership, corporation, and limited-liability corporation (LLC)

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

128361 MENTS was extracted by as at 30 June 2018. als to agree. 30 June 2018 Dr with each other. Trial Balance as at 31 December 2017 32.7X D. Fearon extracted the following trial balance from his books. He could not get the totals to agree Dr Cr Cr $ $ $ $ 87,050 Capital 25,621 62,400 Drawings 13,690 110° 305 410 Sales 94,630 Multiple Each multipl answers: (A) question and (B), (C) or (D piece of pape of questions written atter When you your answer 3,168 Purchases 258 60,375 61 A debit 595 Returns inwards and outwards 1,210 1,109 10,000-35 Wages and salaries 2,000 14,371 12,490 Sundry expenses чут -598 8,120 5,045 Inventory 1.1.2017 8,792 168 account (A) we (B) we (C) we h that 6,790+85 Accounts receivable and accounts 16811,370 4,290 (D) we payable 4,520 Loan from J. Chandler 2000 62 Inventor 5,000 17,017 Equipment 16,000 period is 1,134 Bank 1500 (A) carri 5,790 109,522 109,522 Suspense (B) carri 1,546 (C) tran 132,196 132,196 nd: by $350. ercast by $100. 50, have been entered in n…

None

Ans

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 7RQ

To determine

Business entity: A business organization which is created by one or more persons and governed by state law.

The following are the four types of business entities:

Sole proprietorship: The form of business entity which is owned and managed by an individual is referred to as sole proprietorship.

Partnership: The form of business entity which is formed by an agreement, owned and managed mutually by two or more individuals, who invest their assets in the business and share the liabilities and profits among themselves is referred to as partnership.

Corporation: The form of business entity which is incorporated by state law into a separate legal entity, owned by stockholders, and managed by board of directors elected by stockholders is referred to as corporation.

Limited-liability corporation (LLC): The form of business entity which is unincorporated but functions as a corporate and the owners are called members or partners. So, LLC has both the features of corporation and partnership.

To describe: The similarities and differences between sole proprietorship, partnership, corporation, and limited-liability corporation (LLC)

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

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 7RQ

To determine

Business entity: A business organization which is created by one or more persons and governed by state law.

The following are the four types of business entities:

Sole proprietorship: The form of business entity which is owned and managed by an individual is referred to as sole proprietorship.

Partnership: The form of business entity which is formed by an agreement, owned and managed mutually by two or more individuals, who invest their assets in the business and share the liabilities and profits among themselves is referred to as partnership.

Corporation: The form of business entity which is incorporated by state law into a separate legal entity, owned by stockholders, and managed by board of directors elected by stockholders is referred to as corporation.

Limited-liability corporation (LLC): The form of business entity which is unincorporated but functions as a corporate and the owners are called members or partners. So, LLC has both the features of corporation and partnership.

To describe: The similarities and differences between sole proprietorship, partnership, corporation, and limited-liability corporation (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 7RQ

To determine