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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Summit Electronics manufactures a single product. The company has provided the following data for its most recent month of operations: Number of units produced: 3,800 Variable costs per unit: • Direct materials: $95 Direct labor: $100 • Variable manufacturing overhead: $4 . Variable selling and administrative expense: $10 Fixed costs: • Fixed manufacturing overhead: $152,000 Fixed selling and administrative expense: $290,000 There were no beginning or ending inventories. Compute the absorption costing unit product cost.

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

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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

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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