Partnership : Partnership is an agreement of at least two persons to run a business and share the profit and loss in an agreed ratio. The ratio of sharing profit and loss is decided by the partners through mutual agreement. Generally, small retailers prefer partnership form of business. To explain: The characteristics of a partnership.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 12, Problem 1Q

To determine

Partnership: Partnership is an agreement of at least two persons to run a business and share the profit and loss in an agreed ratio. The ratio of sharing profit and loss is decided by the partners through mutual agreement. Generally, small retailers prefer partnership form of business.

To explain: The characteristics of a partnership.

Expert Solution & Answer

Answer to Problem 1Q

The following are some of the important characteristics of the partnership:

Association of individuals.
Limited life.
Co-ownership of property.

Explanation of Solution

Association of individuals: A partnership is not known by individual names of the partners but is known by its own name. It can acquire property in its name and can sue and be sued by others in its name. It is a legal entity that means it is registered in its name and is a separate entity that is its assets and liabilities are its own and not those of its partners.
Limited life: The life of partnerships is limited as it ends on the admission, death, retirement, and liquidation of any partner. On each of such occasions the partnership ends and if agreed by partners get renewed.
Co-ownership of property: All the partners of the partnership jointly own the assets of the partners. On the dissolution of the partnership, the amount realized from the assets is shared by the partners in the agreed ratio.

Conclusion

Thus, the partnership is an association of persons, having a limited life and co-ownership of property.

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

I am trying to find the accurate solution to this general accounting problem with appropriate explanations.

Can you solve this financial accounting question using valid financial methods?

Accounting standard diferences

Answer 2

Question

Chapter 12, Problem 1Q

To determine

Partnership: Partnership is an agreement of at least two persons to run a business and share the profit and loss in an agreed ratio. The ratio of sharing profit and loss is decided by the partners through mutual agreement. Generally, small retailers prefer partnership form of business.

To explain: The characteristics of a partnership.

Expert Solution & Answer

Answer to Problem 1Q

The following are some of the important characteristics of the partnership:

Association of individuals.
Limited life.
Co-ownership of property.

Explanation of Solution

Association of individuals: A partnership is not known by individual names of the partners but is known by its own name. It can acquire property in its name and can sue and be sued by others in its name. It is a legal entity that means it is registered in its name and is a separate entity that is its assets and liabilities are its own and not those of its partners.
Limited life: The life of partnerships is limited as it ends on the admission, death, retirement, and liquidation of any partner. On each of such occasions the partnership ends and if agreed by partners get renewed.
Co-ownership of property: All the partners of the partnership jointly own the assets of the partners. On the dissolution of the partnership, the amount realized from the assets is shared by the partners in the agreed ratio.

Conclusion

Thus, the partnership is an association of persons, having a limited life and co-ownership of property.

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!

Answer 3

Question

Chapter 12, Problem 1Q

To determine

Partnership: Partnership is an agreement of at least two persons to run a business and share the profit and loss in an agreed ratio. The ratio of sharing profit and loss is decided by the partners through mutual agreement. Generally, small retailers prefer partnership form of business.

To explain: The characteristics of a partnership.

Expert Solution & Answer

Answer to Problem 1Q

The following are some of the important characteristics of the partnership:

Association of individuals.
Limited life.
Co-ownership of property.

Explanation of Solution

Association of individuals: A partnership is not known by individual names of the partners but is known by its own name. It can acquire property in its name and can sue and be sued by others in its name. It is a legal entity that means it is registered in its name and is a separate entity that is its assets and liabilities are its own and not those of its partners.
Limited life: The life of partnerships is limited as it ends on the admission, death, retirement, and liquidation of any partner. On each of such occasions the partnership ends and if agreed by partners get renewed.
Co-ownership of property: All the partners of the partnership jointly own the assets of the partners. On the dissolution of the partnership, the amount realized from the assets is shared by the partners in the agreed ratio.

Conclusion

Thus, the partnership is an association of persons, having a limited life and co-ownership of property.

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!

Answer 4

Question

Chapter 12, Problem 1Q

To determine

Partnership: Partnership is an agreement of at least two persons to run a business and share the profit and loss in an agreed ratio. The ratio of sharing profit and loss is decided by the partners through mutual agreement. Generally, small retailers prefer partnership form of business.

To explain: The characteristics of a partnership.

Expert Solution & Answer

Answer to Problem 1Q

The following are some of the important characteristics of the partnership:

Association of individuals.
Limited life.
Co-ownership of property.

Explanation of Solution

Association of individuals: A partnership is not known by individual names of the partners but is known by its own name. It can acquire property in its name and can sue and be sued by others in its name. It is a legal entity that means it is registered in its name and is a separate entity that is its assets and liabilities are its own and not those of its partners.
Limited life: The life of partnerships is limited as it ends on the admission, death, retirement, and liquidation of any partner. On each of such occasions the partnership ends and if agreed by partners get renewed.
Co-ownership of property: All the partners of the partnership jointly own the assets of the partners. On the dissolution of the partnership, the amount realized from the assets is shared by the partners in the agreed ratio.

Conclusion

Thus, the partnership is an association of persons, having a limited life and co-ownership of property.

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!

Answer 5

Chapter 12, Problem 1Q

To determine

Partnership: Partnership is an agreement of at least two persons to run a business and share the profit and loss in an agreed ratio. The ratio of sharing profit and loss is decided by the partners through mutual agreement. Generally, small retailers prefer partnership form of business.

To explain: The characteristics of a partnership.

Expert Solution & Answer

Answer to Problem 1Q

The following are some of the important characteristics of the partnership:

Association of individuals.
Limited life.
Co-ownership of property.

Explanation of Solution

Association of individuals: A partnership is not known by individual names of the partners but is known by its own name. It can acquire property in its name and can sue and be sued by others in its name. It is a legal entity that means it is registered in its name and is a separate entity that is its assets and liabilities are its own and not those of its partners.
Limited life: The life of partnerships is limited as it ends on the admission, death, retirement, and liquidation of any partner. On each of such occasions the partnership ends and if agreed by partners get renewed.
Co-ownership of property: All the partners of the partnership jointly own the assets of the partners. On the dissolution of the partnership, the amount realized from the assets is shared by the partners in the agreed ratio.

Conclusion

Thus, the partnership is an association of persons, having a limited life and co-ownership of property.

Answer 6

Chapter 12, Problem 1Q

To determine

Partnership: Partnership is an agreement of at least two persons to run a business and share the profit and loss in an agreed ratio. The ratio of sharing profit and loss is decided by the partners through mutual agreement. Generally, small retailers prefer partnership form of business.

To explain: The characteristics of a partnership.

Expert Solution & Answer

Answer to Problem 1Q

The following are some of the important characteristics of the partnership:

Association of individuals.
Limited life.
Co-ownership of property.

Explanation of Solution

Association of individuals: A partnership is not known by individual names of the partners but is known by its own name. It can acquire property in its name and can sue and be sued by others in its name. It is a legal entity that means it is registered in its name and is a separate entity that is its assets and liabilities are its own and not those of its partners.
Limited life: The life of partnerships is limited as it ends on the admission, death, retirement, and liquidation of any partner. On each of such occasions the partnership ends and if agreed by partners get renewed.
Co-ownership of property: All the partners of the partnership jointly own the assets of the partners. On the dissolution of the partnership, the amount realized from the assets is shared by the partners in the agreed ratio.

Conclusion

Thus, the partnership is an association of persons, having a limited life and co-ownership of property.

Answer 7

Chapter 12, Problem 1Q

To determine

Partnership: Partnership is an agreement of at least two persons to run a business and share the profit and loss in an agreed ratio. The ratio of sharing profit and loss is decided by the partners through mutual agreement. Generally, small retailers prefer partnership form of business.

To explain: The characteristics of a partnership.

Answer 8

Expert Solution & Answer

Answer to Problem 1Q

The following are some of the important characteristics of the partnership:

Association of individuals.
Limited life.
Co-ownership of property.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Association of individuals: A partnership is not known by individual names of the partners but is known by its own name. It can acquire property in its name and can sue and be sued by others in its name. It is a legal entity that means it is registered in its name and is a separate entity that is its assets and liabilities are its own and not those of its partners.
Limited life: The life of partnerships is limited as it ends on the admission, death, retirement, and liquidation of any partner. On each of such occasions the partnership ends and if agreed by partners get renewed.
Co-ownership of property: All the partners of the partnership jointly own the assets of the partners. On the dissolution of the partnership, the amount realized from the assets is shared by the partners in the agreed ratio.