
Cengagenowv2, 1 Term Printed Access Card For Warren/reeve/duchac's Financial Accounting, 15th
15th Edition
ISBN: 9781337272353
Author: WARREN, Carl; Reeve, James M.; Duchac, Jonathan
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 12, Problem 1DQ
To determine
Explain the main advantages of the following:
- (a) Proprietorship.
- (b)
Partnership . - (c) Limited Liability Company.
Expert Solution & Answer

Explanation of Solution
Proprietorships: Proprietorship is a form of organization, which is owned by an individual, called proprietor. The most common proprietors are lawyers, physician, and more.
Partnership: It is that form of organization which is owned and managed by two or more persons who invest and share the
Limited Liability Company: It is that form of organization which is formed as a legal entity that provides limited liability to the owners. It has a common seal.
- The main advantages of Proprietorships are:
- Easy of formation: It is easy for forming this type of entity.
- Non-taxable entity: This entity is not taxed for federal income tax purposes.
- The main advantages of Partnership are:
- Moderately complex to form: It is formed with a partnership agreement, so moderately complex.
- Non-taxable entity: This entity is not taxed for federal income tax purposes.
- The main advantages of Limited Liability Company are:
- Moderately complex to form: It is formed with an agreement among the owners, so moderately complex.
- Non-taxable entity: This entity is not taxed for federal income tax purposes, but the owners are required to file the individual members’ tax return.
- Expanded access to Capital: This entity is attracted by the investors to invest in the organization because of the limited liability.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
During November, Pico Company had $120,300 of cash receipts and $119,750 of cash disbursements. The November 30 cash balance was $25,400. Determine how much cash the company had at the close of business on October 31. Help
Financial answer
correct answer please
Chapter 12 Solutions
Cengagenowv2, 1 Term Printed Access Card For Warren/reeve/duchac's Financial Accounting, 15th
Ch. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQ
Ch. 12 - Prob. 1PEACh. 12 - Prob. 1PEBCh. 12 - Prob. 2PEACh. 12 - Prob. 2PEBCh. 12 - Prob. 3PEACh. 12 - Prob. 3PEBCh. 12 - Prob. 4PEACh. 12 - Prob. 4PEBCh. 12 - Prob. 5PEACh. 12 - Liquidating partnerships Prior to liquidating...Ch. 12 - Prob. 6PEACh. 12 - Prob. 6PEBCh. 12 - Revenue per employee Niles and Cohen, CPAs earned...Ch. 12 - Prob. 7PEBCh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Prob. 13ECh. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 16ECh. 12 - Statement of members equity, admitting new member...Ch. 12 - Distribution of cash upon liquidation Hewitt and...Ch. 12 - Distribution of cash upon liquidation David Oliver...Ch. 12 - Liquidating partnershipscapital deficiency Lewis,...Ch. 12 - Prob. 21ECh. 12 - Prob. 22ECh. 12 - Statement of partnership liquidation After closing...Ch. 12 - Prob. 24ECh. 12 - Prob. 25ECh. 12 - Revenue per professional staff The accounting firm...Ch. 12 - Prob. 27ECh. 12 - Prob. 1PACh. 12 - Prob. 2PACh. 12 - Prob. 3PACh. 12 - Prob. 4PACh. 12 - Statement of partnership liquidation After the...Ch. 12 - Prob. 6PACh. 12 - Prob. 1PBCh. 12 - Prob. 2PBCh. 12 - Prob. 3PBCh. 12 - Prob. 4PBCh. 12 - Statement of partnership liquidation After the...Ch. 12 - On August 3, the firm of Chapelle, Rock, and Pryor...Ch. 12 - Prob. 1CPCh. 12 - Prob. 3CPCh. 12 - Prob. 4CP
Knowledge Booster
Similar questions
- What is the amount of total assets on these financial accounting question?arrow_forwardOn July 10, Queer Optics sells merchandise on account to Vision Plus (VP) for $5,200, terms 3/10, n/30. On July 14, VP returns merchandise worth $1,200 to Queer Optics. On July 18, VP completely fulfills its obligation to Queer Optics by making a cash payment. What is the amount of cash paid by VP to Queer Optics?arrow_forwardA company reports total liabilities of $2,100 and stockholders' equity of $1,600. What is the amount of total assets?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT

EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT