Sole proprietorship: There are several forms of business organization like partnership , corporation, limited liability partnership, and sole proprietorships. Amongst all of the business organization forms, a sole proprietorship is the simplest form. Under a sole proprietorship, the business is owned and controlled by a single person. To indicate: The pros and cons of a ‘sole proprietorship’ form of 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 S1.4SE

To determine

Sole proprietorship:

There are several forms of business organization like partnership, corporation, limited liability partnership, and sole proprietorships. Amongst all of the business organization forms, a sole proprietorship is the simplest form. Under a sole proprietorship, the business is owned and controlled by a single person.

To indicate:

The pros and cons of a ‘sole proprietorship’ form of business.

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Alanood Company wants to prepare interim financial statements for the first quarter of 2020 but would like to avoid making a physical count of inventory. During the last five years the company's gross profit rate averaged 36%. The following information for the years first quarter is available from its records: January 1 beginning inventory $150,130 Purchases $472,600 Purchase returns $6,525 Transportation in $3,450 Sales $595,575 Sales returns $4,725 Use the gross profit method to prepare an estimate of the company's March 31 inventory.

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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 S1.4SE

To determine

Sole proprietorship:

There are several forms of business organization like partnership, corporation, limited liability partnership, and sole proprietorships. Amongst all of the business organization forms, a sole proprietorship is the simplest form. Under a sole proprietorship, the business is owned and controlled by a single person.

To indicate:

The pros and cons of a ‘sole proprietorship’ form of business.

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 S1.4SE

To determine

Sole proprietorship:

There are several forms of business organization like partnership, corporation, limited liability partnership, and sole proprietorships. Amongst all of the business organization forms, a sole proprietorship is the simplest form. Under a sole proprietorship, the business is owned and controlled by a single person.

To indicate:

The pros and cons of a ‘sole proprietorship’ form of business.

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 S1.4SE

To determine