Partnership : Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio. Characteristics of partnership: A General partnership has the following characteristics: • Duration of Life: A General partnership has a limited life. • Owner's Liability: The partner’s liability is unlimited in case of a partnership. • Legal Status: A partnership is not considered as a separate legal entity. • Tax Status of Income: In case of partnership firm, the income earned by the partnership is taxed in the hand of partner’s. • Owner's authority and authorization: A partnership works on the concept of Mutual Agency. As per Mutual agency concept, each partner is principal as well as the agent of another partner; they work for the benefit of partnership firm together. • Ease of formation: A partnership firm is very easy to form business organization; it requires only a partnership contract to form a partnership. • Transfer of ownership: Transfer of owner is difficult in case of change of partners in a partnership. Ability to raise the large capital amount: A partnership firm cannot raise a large capital amount as it has a limited number of partner’s and it does not have access to the public funds. To determine: The correct matches for each characteristic of the general partnership

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 12, Problem 1E

To determine

Concept Introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Characteristics of partnership: A General partnership has the following characteristics:

• Duration of Life: A General partnership has a limited life.

• Owner's Liability: The partner’s liability is unlimited in case of a partnership.

• Legal Status: A partnership is not considered as a separate legal entity.

• Tax Status of Income: In case of partnership firm, the income earned by the partnership is taxed in the hand of partner’s.

• Owner's authority and authorization: A partnership works on the concept of Mutual Agency. As per Mutual agency concept, each partner is principal as well as the agent of another partner; they work for the benefit of partnership firm together.

• Ease of formation: A partnership firm is very easy to form business organization; it requires only a partnership contract to form a partnership.

• Transfer of ownership: Transfer of owner is difficult in case of change of partners in a partnership.

Ability to raise the large capital amount: A partnership firm cannot raise a large capital amount as it has a limited number of partner’s and it does not have access to the public funds.

To determine: The correct matches for each characteristic of the general partnership

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Ghana Company reported inventory of $60,000 at the beginning of 2023. During the year, it purchased inventory of $625,000 and sold inventory for $950,000. A count of inventory at the end of the year determined that the cost of inventory on hand was $50,000. What was Ghana's cost of goods sold for 2023? Answer

Accounting 12

General accounting

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 12, Problem 1E

To determine

Concept Introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Characteristics of partnership: A General partnership has the following characteristics:

• Duration of Life: A General partnership has a limited life.

• Owner's Liability: The partner’s liability is unlimited in case of a partnership.

• Legal Status: A partnership is not considered as a separate legal entity.

• Tax Status of Income: In case of partnership firm, the income earned by the partnership is taxed in the hand of partner’s.

• Owner's authority and authorization: A partnership works on the concept of Mutual Agency. As per Mutual agency concept, each partner is principal as well as the agent of another partner; they work for the benefit of partnership firm together.

• Ease of formation: A partnership firm is very easy to form business organization; it requires only a partnership contract to form a partnership.

• Transfer of ownership: Transfer of owner is difficult in case of change of partners in a partnership.

Ability to raise the large capital amount: A partnership firm cannot raise a large capital amount as it has a limited number of partner’s and it does not have access to the public funds.

To determine: The correct matches for each characteristic of the general partnership

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 12, Problem 1E

To determine

Concept Introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Characteristics of partnership: A General partnership has the following characteristics:

• Duration of Life: A General partnership has a limited life.

• Owner's Liability: The partner’s liability is unlimited in case of a partnership.

• Legal Status: A partnership is not considered as a separate legal entity.

• Tax Status of Income: In case of partnership firm, the income earned by the partnership is taxed in the hand of partner’s.

• Owner's authority and authorization: A partnership works on the concept of Mutual Agency. As per Mutual agency concept, each partner is principal as well as the agent of another partner; they work for the benefit of partnership firm together.

• Ease of formation: A partnership firm is very easy to form business organization; it requires only a partnership contract to form a partnership.

• Transfer of ownership: Transfer of owner is difficult in case of change of partners in a partnership.

Ability to raise the large capital amount: A partnership firm cannot raise a large capital amount as it has a limited number of partner’s and it does not have access to the public funds.

To determine: The correct matches for each characteristic of the general partnership

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 12, Problem 1E

To determine