Corporation: A business entity which is liable for the actions and finances of the business, it is owned by shareholders but controlled by board of directors which are officially elected by shareholders it can be for a profit purpose or can be charitable To explain: (a) Separate legal existence, (b) limited liability of stockholders and (c) transferable ownership rights.

Question

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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 13, Problem 1Q

To determine

Corporation: A business entity which is liable for the actions and finances of the business, it is owned by shareholders but controlled by board of directors which are officially elected by shareholders it can be for a profit purpose or can be charitable

To explain: (a) Separate legal existence, (b) limited liability of stockholders and (c) transferable ownership rights.

Expert Solution & Answer

Explanation of Solution

Separate legal existence: A business which is detached from another business in terms of reporting. It comes into existence to separate the actions of business from other company.
Limited liability of stockholders: Stockholders liability remains limited to the amount of their capital invested in business regardless of losses suffer by the business.
Transferable ownership rights: Shares are owned by the shareholders they can sell them wholly are partially depending on their will, however the things changed in partnership firm as it required a common understanding of all or both the partners.

Notes:

Under separate legal existence, a business is separated from another business (of which it was a part of) in terms of accountability. It creates its own business identity and can enter into contracts with that.
Limited liability stockholders state that shareholders ownership is only limited to the amount they invested in business. Under this, creditors cannot claim the company’s assets.
Shareholders holding shares in a company, give them right to sell them without anybody’s interference while this is only the case in individual business entity in case of partnership firm they can only be sold or purchased only after a mutual consent.

Conclusion

The above given characteristics have different but an important existence in partnership and individual business types.

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Waiting for your solution general accounting question

ABC Electronics had sales to customers of $600,000 during 2020. The company has consistently experienced a 30% gross profit percentage and estimates that 4% of all sales will be returned. During 2020, customers returned merchandise for credit of $20,000 to their accounts. The balance in the allowance for sales returns account at the beginning of 2020 was $28,000. What is the balance in the allowance for sales returns account at the end of 2020?

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 13, Problem 1Q

To determine

Corporation: A business entity which is liable for the actions and finances of the business, it is owned by shareholders but controlled by board of directors which are officially elected by shareholders it can be for a profit purpose or can be charitable

To explain: (a) Separate legal existence, (b) limited liability of stockholders and (c) transferable ownership rights.

Expert Solution & Answer

Explanation of Solution

Separate legal existence: A business which is detached from another business in terms of reporting. It comes into existence to separate the actions of business from other company.
Limited liability of stockholders: Stockholders liability remains limited to the amount of their capital invested in business regardless of losses suffer by the business.
Transferable ownership rights: Shares are owned by the shareholders they can sell them wholly are partially depending on their will, however the things changed in partnership firm as it required a common understanding of all or both the partners.

Notes:

Under separate legal existence, a business is separated from another business (of which it was a part of) in terms of accountability. It creates its own business identity and can enter into contracts with that.
Limited liability stockholders state that shareholders ownership is only limited to the amount they invested in business. Under this, creditors cannot claim the company’s assets.
Shareholders holding shares in a company, give them right to sell them without anybody’s interference while this is only the case in individual business entity in case of partnership firm they can only be sold or purchased only after a mutual consent.

Conclusion

The above given characteristics have different but an important existence in partnership and individual business types.

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

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 13, Problem 1Q

To determine

Corporation: A business entity which is liable for the actions and finances of the business, it is owned by shareholders but controlled by board of directors which are officially elected by shareholders it can be for a profit purpose or can be charitable

To explain: (a) Separate legal existence, (b) limited liability of stockholders and (c) transferable ownership rights.

Expert Solution & Answer

Explanation of Solution

Separate legal existence: A business which is detached from another business in terms of reporting. It comes into existence to separate the actions of business from other company.
Limited liability of stockholders: Stockholders liability remains limited to the amount of their capital invested in business regardless of losses suffer by the business.
Transferable ownership rights: Shares are owned by the shareholders they can sell them wholly are partially depending on their will, however the things changed in partnership firm as it required a common understanding of all or both the partners.

Notes:

Under separate legal existence, a business is separated from another business (of which it was a part of) in terms of accountability. It creates its own business identity and can enter into contracts with that.
Limited liability stockholders state that shareholders ownership is only limited to the amount they invested in business. Under this, creditors cannot claim the company’s assets.
Shareholders holding shares in a company, give them right to sell them without anybody’s interference while this is only the case in individual business entity in case of partnership firm they can only be sold or purchased only after a mutual consent.

Conclusion

The above given characteristics have different but an important existence in partnership and individual business types.

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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 13, Problem 1Q

To determine

Corporation: A business entity which is liable for the actions and finances of the business, it is owned by shareholders but controlled by board of directors which are officially elected by shareholders it can be for a profit purpose or can be charitable

To explain: (a) Separate legal existence, (b) limited liability of stockholders and (c) transferable ownership rights.

Expert Solution & Answer

Explanation of Solution

Separate legal existence: A business which is detached from another business in terms of reporting. It comes into existence to separate the actions of business from other company.
Limited liability of stockholders: Stockholders liability remains limited to the amount of their capital invested in business regardless of losses suffer by the business.
Transferable ownership rights: Shares are owned by the shareholders they can sell them wholly are partially depending on their will, however the things changed in partnership firm as it required a common understanding of all or both the partners.

Notes:

Under separate legal existence, a business is separated from another business (of which it was a part of) in terms of accountability. It creates its own business identity and can enter into contracts with that.
Limited liability stockholders state that shareholders ownership is only limited to the amount they invested in business. Under this, creditors cannot claim the company’s assets.
Shareholders holding shares in a company, give them right to sell them without anybody’s interference while this is only the case in individual business entity in case of partnership firm they can only be sold or purchased only after a mutual consent.

Conclusion

The above given characteristics have different but an important existence in partnership and individual business types.

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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 13, Problem 1Q

To determine

Corporation: A business entity which is liable for the actions and finances of the business, it is owned by shareholders but controlled by board of directors which are officially elected by shareholders it can be for a profit purpose or can be charitable

To explain: (a) Separate legal existence, (b) limited liability of stockholders and (c) transferable ownership rights.

Expert Solution & Answer

Explanation of Solution

Separate legal existence: A business which is detached from another business in terms of reporting. It comes into existence to separate the actions of business from other company.
Limited liability of stockholders: Stockholders liability remains limited to the amount of their capital invested in business regardless of losses suffer by the business.
Transferable ownership rights: Shares are owned by the shareholders they can sell them wholly are partially depending on their will, however the things changed in partnership firm as it required a common understanding of all or both the partners.

Notes:

Under separate legal existence, a business is separated from another business (of which it was a part of) in terms of accountability. It creates its own business identity and can enter into contracts with that.
Limited liability stockholders state that shareholders ownership is only limited to the amount they invested in business. Under this, creditors cannot claim the company’s assets.
Shareholders holding shares in a company, give them right to sell them without anybody’s interference while this is only the case in individual business entity in case of partnership firm they can only be sold or purchased only after a mutual consent.

Conclusion

The above given characteristics have different but an important existence in partnership and individual business types.

Answer 6

Chapter 13, Problem 1Q

To determine

Corporation: A business entity which is liable for the actions and finances of the business, it is owned by shareholders but controlled by board of directors which are officially elected by shareholders it can be for a profit purpose or can be charitable

To explain: (a) Separate legal existence, (b) limited liability of stockholders and (c) transferable ownership rights.

Expert Solution & Answer

Explanation of Solution

Separate legal existence: A business which is detached from another business in terms of reporting. It comes into existence to separate the actions of business from other company.
Limited liability of stockholders: Stockholders liability remains limited to the amount of their capital invested in business regardless of losses suffer by the business.
Transferable ownership rights: Shares are owned by the shareholders they can sell them wholly are partially depending on their will, however the things changed in partnership firm as it required a common understanding of all or both the partners.

Notes:

Under separate legal existence, a business is separated from another business (of which it was a part of) in terms of accountability. It creates its own business identity and can enter into contracts with that.
Limited liability stockholders state that shareholders ownership is only limited to the amount they invested in business. Under this, creditors cannot claim the company’s assets.
Shareholders holding shares in a company, give them right to sell them without anybody’s interference while this is only the case in individual business entity in case of partnership firm they can only be sold or purchased only after a mutual consent.

Conclusion

The above given characteristics have different but an important existence in partnership and individual business types.

Answer 7

Chapter 13, Problem 1Q

To determine

Corporation: A business entity which is liable for the actions and finances of the business, it is owned by shareholders but controlled by board of directors which are officially elected by shareholders it can be for a profit purpose or can be charitable

To explain: (a) Separate legal existence, (b) limited liability of stockholders and (c) transferable ownership rights.

Answer 8

Expert Solution & Answer

Explanation of Solution

Separate legal existence: A business which is detached from another business in terms of reporting. It comes into existence to separate the actions of business from other company.
Limited liability of stockholders: Stockholders liability remains limited to the amount of their capital invested in business regardless of losses suffer by the business.
Transferable ownership rights: Shares are owned by the shareholders they can sell them wholly are partially depending on their will, however the things changed in partnership firm as it required a common understanding of all or both the partners.

Notes:

Under separate legal existence, a business is separated from another business (of which it was a part of) in terms of accountability. It creates its own business identity and can enter into contracts with that.
Limited liability stockholders state that shareholders ownership is only limited to the amount they invested in business. Under this, creditors cannot claim the company’s assets.
Shareholders holding shares in a company, give them right to sell them without anybody’s interference while this is only the case in individual business entity in case of partnership firm they can only be sold or purchased only after a mutual consent.