Partnership : Partnership can be described as an association of two or more entities such as individuals; corporations etc. who undertake one or more activities with an intention to make a profit. The profit or loss of the association is distributed between the partners in a predetermined ratio known as a profit sharing ratio. Partnerships have certain features such as a contract for a partnership, existence of two or more persons, profit sharing ratio etc. To identify: The Characteristic of a general partnership

Question

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Answer 1

Question

Chapter 12, Problem 1QC

To determine

Partnership:

Partnership can be described as an association of two or more entities such as individuals; corporations etc. who undertake one or more activities with an intention to make a profit.

The profit or loss of the association is distributed between the partners in a predetermined ratio known as a profit sharing ratio.

Partnerships have certain features such as a contract for a partnership, existence of two or more persons, profit sharing ratio etc.

To identify:

The Characteristic of a general partnership

Expert Solution & Answer

Answer to Problem 1QC

Solution:

The correct answer is Option C.

Explanation of Solution

• A partnership does not limit liability of the partners to their share of the partnership. Partners are responsible in their individual capacity if the partnership firm fails to fulfill any liabilities or obligations that the partnership is responsible for.

• Partnerships usually are formed for a specific duration and may cease to exist in the event of death, retirement or insolvency of one or more partners.

• However, a partnership firm does not pay any business income tax. Instead profits from the partnerships are taxed in the hands of the partners in their individual capacity.

Conclusion

Hence it can be seen that a general characteristic of a general partnership is that it does not pay business income tax.

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Outline three (3) ways that conflicts of interest should be managed by tax agents. In relation to the two (2) conflict examples that you identified in question 1, explain how each one of these conflicts should be managed.

Answer 2

Question

Chapter 12, Problem 1QC

To determine

Partnership:

Partnership can be described as an association of two or more entities such as individuals; corporations etc. who undertake one or more activities with an intention to make a profit.

The profit or loss of the association is distributed between the partners in a predetermined ratio known as a profit sharing ratio.

Partnerships have certain features such as a contract for a partnership, existence of two or more persons, profit sharing ratio etc.

To identify:

The Characteristic of a general partnership

Expert Solution & Answer

Answer to Problem 1QC

Solution:

The correct answer is Option C.

Explanation of Solution

• A partnership does not limit liability of the partners to their share of the partnership. Partners are responsible in their individual capacity if the partnership firm fails to fulfill any liabilities or obligations that the partnership is responsible for.

• Partnerships usually are formed for a specific duration and may cease to exist in the event of death, retirement or insolvency of one or more partners.

• However, a partnership firm does not pay any business income tax. Instead profits from the partnerships are taxed in the hands of the partners in their individual capacity.

Conclusion

Hence it can be seen that a general characteristic of a general partnership is that it does not pay business income tax.

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Answer 3

Question

Chapter 12, Problem 1QC

To determine

Partnership:

Partnership can be described as an association of two or more entities such as individuals; corporations etc. who undertake one or more activities with an intention to make a profit.

The profit or loss of the association is distributed between the partners in a predetermined ratio known as a profit sharing ratio.

Partnerships have certain features such as a contract for a partnership, existence of two or more persons, profit sharing ratio etc.

To identify:

The Characteristic of a general partnership

Expert Solution & Answer

Answer to Problem 1QC

Solution:

The correct answer is Option C.

Explanation of Solution

• A partnership does not limit liability of the partners to their share of the partnership. Partners are responsible in their individual capacity if the partnership firm fails to fulfill any liabilities or obligations that the partnership is responsible for.

• Partnerships usually are formed for a specific duration and may cease to exist in the event of death, retirement or insolvency of one or more partners.

• However, a partnership firm does not pay any business income tax. Instead profits from the partnerships are taxed in the hands of the partners in their individual capacity.

Conclusion

Hence it can be seen that a general characteristic of a general partnership is that it does not pay business income tax.

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Answer 4

Question

Chapter 12, Problem 1QC

To determine

Partnership:

Partnership can be described as an association of two or more entities such as individuals; corporations etc. who undertake one or more activities with an intention to make a profit.

The profit or loss of the association is distributed between the partners in a predetermined ratio known as a profit sharing ratio.

Partnerships have certain features such as a contract for a partnership, existence of two or more persons, profit sharing ratio etc.

To identify:

The Characteristic of a general partnership

Expert Solution & Answer

Answer to Problem 1QC

Solution:

The correct answer is Option C.

Explanation of Solution

• A partnership does not limit liability of the partners to their share of the partnership. Partners are responsible in their individual capacity if the partnership firm fails to fulfill any liabilities or obligations that the partnership is responsible for.

• Partnerships usually are formed for a specific duration and may cease to exist in the event of death, retirement or insolvency of one or more partners.

• However, a partnership firm does not pay any business income tax. Instead profits from the partnerships are taxed in the hands of the partners in their individual capacity.

Conclusion

Hence it can be seen that a general characteristic of a general partnership is that it does not pay business income tax.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 12, Problem 1QC

To determine

Partnership:

Partnership can be described as an association of two or more entities such as individuals; corporations etc. who undertake one or more activities with an intention to make a profit.

The profit or loss of the association is distributed between the partners in a predetermined ratio known as a profit sharing ratio.

Partnerships have certain features such as a contract for a partnership, existence of two or more persons, profit sharing ratio etc.

To identify:

The Characteristic of a general partnership

Expert Solution & Answer

Answer to Problem 1QC

Solution:

The correct answer is Option C.

Explanation of Solution

• A partnership does not limit liability of the partners to their share of the partnership. Partners are responsible in their individual capacity if the partnership firm fails to fulfill any liabilities or obligations that the partnership is responsible for.

• Partnerships usually are formed for a specific duration and may cease to exist in the event of death, retirement or insolvency of one or more partners.

• However, a partnership firm does not pay any business income tax. Instead profits from the partnerships are taxed in the hands of the partners in their individual capacity.

Conclusion

Hence it can be seen that a general characteristic of a general partnership is that it does not pay business income tax.

Answer 6

Chapter 12, Problem 1QC

To determine

Partnership:

Partnership can be described as an association of two or more entities such as individuals; corporations etc. who undertake one or more activities with an intention to make a profit.

The profit or loss of the association is distributed between the partners in a predetermined ratio known as a profit sharing ratio.

Partnerships have certain features such as a contract for a partnership, existence of two or more persons, profit sharing ratio etc.

To identify:

The Characteristic of a general partnership

Expert Solution & Answer

Answer to Problem 1QC

Solution:

The correct answer is Option C.

Explanation of Solution

• A partnership does not limit liability of the partners to their share of the partnership. Partners are responsible in their individual capacity if the partnership firm fails to fulfill any liabilities or obligations that the partnership is responsible for.

• Partnerships usually are formed for a specific duration and may cease to exist in the event of death, retirement or insolvency of one or more partners.

• However, a partnership firm does not pay any business income tax. Instead profits from the partnerships are taxed in the hands of the partners in their individual capacity.

Conclusion

Hence it can be seen that a general characteristic of a general partnership is that it does not pay business income tax.

Answer 7

Chapter 12, Problem 1QC

To determine

Partnership:

Partnership can be described as an association of two or more entities such as individuals; corporations etc. who undertake one or more activities with an intention to make a profit.

The profit or loss of the association is distributed between the partners in a predetermined ratio known as a profit sharing ratio.

Partnerships have certain features such as a contract for a partnership, existence of two or more persons, profit sharing ratio etc.

To identify:

The Characteristic of a general partnership

Answer 8

Expert Solution & Answer

Answer to Problem 1QC

Solution:

The correct answer is Option C.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

• A partnership does not limit liability of the partners to their share of the partnership. Partners are responsible in their individual capacity if the partnership firm fails to fulfill any liabilities or obligations that the partnership is responsible for.

• Partnerships usually are formed for a specific duration and may cease to exist in the event of death, retirement or insolvency of one or more partners.

• However, a partnership firm does not pay any business income tax. Instead profits from the partnerships are taxed in the hands of the partners in their individual capacity.

Answer 12

Conclusion

Hence it can be seen that a general characteristic of a general partnership is that it does not pay business income tax.

Answer 13

Ch. 12 - Prob. 1QC Ch. 12 - Prob. 2QC Ch. 12 - Prob. 3QC Ch. 12 - Which financial statement shows the changes in...Ch. 12 - Prob. 5QC Ch. 12 - Prob. 6QC Ch. 12 - Prob. 7QC Ch. 12 - Peter and Steve admit Meredith to their...Ch. 12 - Prob. 9QC Ch. 12 - Prob. 10QC

Answer to Problem 1QC

Explanation of Solution

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