Forms of the Business Organizations: A business can be formed into any of the business organization types like, Partnership , Sole proprietorship, Corporation, Limited Liability Partnership (LLP), Joint ventures etc. Some basic forms are explained as follows: • 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. • Corporate form: Corporate form is the most complicated and wider form of business organization. It creates a separate legal identity of the business and allows the business to raise funds through public issue. • Sole proprietorship: Amongst all of the business organization forms, a sole proprietorship is the simplest form. Under a sole proprietorship, the business is owned and controlled by a single person. To determine: The form of business organization, tax liability and one advantage of the form of business organization for the owner for each of the given case .

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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 12, Problem 2E

To determine

Concept Introduction:

Forms of the Business Organizations:

A business can be formed into any of the business organization types like, Partnership, Sole proprietorship, Corporation, Limited Liability Partnership (LLP), Joint ventures etc. Some basic forms are explained as follows:

• 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.

• Corporate form: Corporate form is the most complicated and wider form of business organization. It creates a separate legal identity of the business and allows the business to raise funds through public issue.

• Sole proprietorship: Amongst all of the business organization forms, a sole proprietorship is the simplest form. Under a sole proprietorship, the business is owned and controlled by a single person.

To determine: The form of business organization, tax liability and one advantage of the form of business organization for the owner for each of the given case.

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K Sunlight Design Corporation sells glass vases at a wholesale price of $3.50 per unit. The variable cost to manufacture is $1.75 per unit. The monthly fixed costs are $7,500. Its current sales are 27,000 units per month. If the company wants to increase its operating income by 30%, how many additional units must it sell? (Round any intermediate calculations to two decimal places and your final answer up to the nearest whole unit.) A. 7,500 glass vases OB. 33,815 glass vases OC. 6,815 glass vases D. 94,500 glass vases

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Answer 2

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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 12, Problem 2E

To determine

Concept Introduction:

Forms of the Business Organizations:

A business can be formed into any of the business organization types like, Partnership, Sole proprietorship, Corporation, Limited Liability Partnership (LLP), Joint ventures etc. Some basic forms are explained as follows:

• 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.

• Corporate form: Corporate form is the most complicated and wider form of business organization. It creates a separate legal identity of the business and allows the business to raise funds through public issue.

• Sole proprietorship: Amongst all of the business organization forms, a sole proprietorship is the simplest form. Under a sole proprietorship, the business is owned and controlled by a single person.

To determine: The form of business organization, tax liability and one advantage of the form of business organization for the owner for each of the given case.

Expert Solution & Answer

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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 2E

To determine

Concept Introduction:

Forms of the Business Organizations:

A business can be formed into any of the business organization types like, Partnership, Sole proprietorship, Corporation, Limited Liability Partnership (LLP), Joint ventures etc. Some basic forms are explained as follows:

• 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.

• Corporate form: Corporate form is the most complicated and wider form of business organization. It creates a separate legal identity of the business and allows the business to raise funds through public issue.

• Sole proprietorship: Amongst all of the business organization forms, a sole proprietorship is the simplest form. Under a sole proprietorship, the business is owned and controlled by a single person.

To determine: The form of business organization, tax liability and one advantage of the form of business organization for the owner for each of the given case.

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 2E

To determine