Every entity is governed by certain features, and on the basis of that features the characteristics of every entity is being governed. For example, LLC is having a feature of limited liability; however General partnership is having a feature of unlimited liability. To identify: The type of organization to be formed on the basis of given situation

Question

Want to see the full answer?

Answer 1

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:

Every entity is governed by certain features, and on the basis of that features the characteristics of every entity is being governed. For example, LLC is having a feature of limited liability; however General partnership is having a feature of unlimited liability.

To identify:

The type of organization to be formed on the basis of given situation

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

XYZ Corp. had total sales of $1,200 million for fiscal year 2022. The company's gross profit ratio for that year was 40%. Calculate: Gross Profit Cost of Goods Sold (COGS)

Montclair Textiles uses the weighted average method for inventory costs and had the following information available for the year: • Beginning Work in Process (45% complete, $4,100) = 500 units Ending Inventory of Work in Process (80% complete) = 570 units Total units started during the year = 5,600 units What is the number of units transferred to finished goods during the year?

Horizon Inc. had the following transactions during the month of July 2020: Cash received from a bank loan was $50,000. Dividends of $15,000 were paid to stockholders in cash. Revenues earned and received in cash amounted to $120,000. Expenses incurred and paid were $85,000. What amount of net income will be reported on the income statement for July? A) $120,000 B) $85,000 C) $35,000 D) $15,000

Answer 2

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:

Every entity is governed by certain features, and on the basis of that features the characteristics of every entity is being governed. For example, LLC is having a feature of limited liability; however General partnership is having a feature of unlimited liability.

To identify:

The type of organization to be formed on the basis of given situation

Expert Solution & Answer

Want to see the full answer?

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:

Every entity is governed by certain features, and on the basis of that features the characteristics of every entity is being governed. For example, LLC is having a feature of limited liability; however General partnership is having a feature of unlimited liability.

To identify:

The type of organization to be formed on the basis of given situation

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