
Concept Introduction:
Forms of the Business Organizations:
A business can be formed into any of the business organization types like,
• 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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Chapter 12 Solutions
Loose Leaf for Fundamental Accounting Principles
- The net profit of a company for a year on a variable costing basis is $92,000. On an absorption costing basis, the net profit is $78,800. Fixed manufacturing overhead unit were the same in both the prior costs per and current year (i.e. $1.10 per unit). What was the change in inventory over the year?arrow_forwardGlorious Drinks Co. began the year with net fixed assets of $25,000 and had $27,200 in the account at the end of the year. During the year, the company paid $5,500 in interest and expensed $4,000 in depreciation. The company purchased $10,500 in fixed assets during the year. How many fixed assets did the company sell during the year?arrow_forwardAnswer? General accountingarrow_forward
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