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)

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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 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)

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Cullen Beatty plans to start a consulting business-Cullen Consulting Services. In preparation to do this, on April 1, 20X1, he invested $56,000 in cash and $23,000 in equipment, and opened an account at Office Plus by purchasing $1,750 in office supplies which is due by the end of the month. He then signed a one-year lease agreement on an office building for $8,400, paying the full amount in advance. Prepare a Balance Sheet for Cullen Consulting Services as of April 1, 20X1, before he conducts any services. Cash Equipment Prepaid rent CULLEN CONSULTING SERVICES Balance Sheet April 1, 20X1 Assets Liabilities $ 47,600 Accounts payable 23,000 8,400 Owner's Equity $ 1,750 Cullen Beatty, Capital 77,250 Total Assets $ 79,000 Total Liabilities and Owner's Equity $ 79,000

The December 31, 2021, balance sheet of Chen, Incorporated, showed long-term debt of $1,420,000, $144,000 in the common stock account, and $2,690,000 in the additional paid-in surplus account. The December 31, 2022, balance sheet showed long-term debt of $1,620,000, $154,000 in the common stock account and $2,990,000 in the additional paid-in surplus account. The 2022 income statement showed an interest expense of $96,000 and the company paid out $149,000 in cash dividends during 2022. The firm’s net capital spending for 2022 was $1,000,000, and the firm reduced its net working capital investment by $129,000. What was the firm's 2022 operating cash flow, or OCF?

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 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)

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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 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