The problem faced by small businesses, like partnership and proprietorship, while raising capital. Introduction: Sole proprietorship is a form of business where a single person owns the business. It is also known as a sole trader. A partnership is somewhat similar to sole proprietorship. However, there are more than two owners in a partnership firm.

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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 11, Problem 9CRCT

Summary Introduction

To discuss: The problem faced by small businesses, like partnership and proprietorship, while raising capital.

Introduction:

Sole proprietorship is a form of business where a single person owns the business. It is also known as a sole trader.

A partnership is somewhat similar to sole proprietorship. However, there are more than two owners in a partnership firm.

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Pam and Jim are saving money for their two children who they plan to send to university.The eldest child will enter university in 5 years while the younger will enter in 7 years. Each child is expected spend four years at university. University fees are currently R20 000 per year and are expected to grow at 5% per year. These fees are paid at the beginning of each year.Pam and Jim currently have R40 000 in their savings and their plan is to save a fixed amount each year for the next 5 years. The first deposit taking place at the end of the current year and the last deposit at the date the first university fees are paid.Pam and Jim expect to earn 10% per year on their investments.What amount should they invest each year to meet the cost of their children’s university fees?

You make a loan of R100 000, with annual payments being made at the end of each year for the next 5 years at a 10% interest rate. How much interest is paid in the second year?

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 11, Problem 9CRCT

Summary Introduction

To discuss: The problem faced by small businesses, like partnership and proprietorship, while raising capital.

Introduction:

Sole proprietorship is a form of business where a single person owns the business. It is also known as a sole trader.

A partnership is somewhat similar to sole proprietorship. However, there are more than two owners in a partnership firm.

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 11, Problem 9CRCT

Summary Introduction

To discuss: The problem faced by small businesses, like partnership and proprietorship, while raising capital.

Introduction:

Sole proprietorship is a form of business where a single person owns the business. It is also known as a sole trader.

A partnership is somewhat similar to sole proprietorship. However, there are more than two owners in a partnership firm.

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 11, Problem 9CRCT

Summary Introduction