The Corporate form of organization: There are several forms of business organizations like proprietorship, partnership , limited liability partnership, Corporation etc. The 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. Characteristic of a corporation are as follows: Separate legal entity: The Corporate form of business has its own legal identity and owners are personally liable for the debt of the corporation. Easy availability of funds: As compared with other business form, a corporate form of business can easily raise find by making public issues of its shares. Separate taxability: The Corporate form of business has its own legal identity and hence it is separately taxed. Hence owners are not liable for the tax liability of the company. Limited liability of shareholders: Shareholders or owners of the company have limited liability. They are not personally liable for the debts of the company. Easy transfer of ownership: In the case of a company the ownership is transferred only by the transferring the shares of the company. To identify: The true statements about Characteristic of a corporate form of organization

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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 1QS

To determine

Concept Introduction:

The Corporate form of organization:

There are several forms of business organizations like proprietorship, partnership, limited liability partnership, Corporation etc. The 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.

Characteristic of a corporation are as follows:

Separate legal entity: The Corporate form of business has its own legal identity and owners are personally liable for the debt of the corporation.

Easy availability of funds: As compared with other business form, a corporate form of business can easily raise find by making public issues of its shares.

Separate taxability: The Corporate form of business has its own legal identity and hence it is separately taxed. Hence owners are not liable for the tax liability of the company.

Limited liability of shareholders: Shareholders or owners of the company have limited liability. They are not personally liable for the debts of the company.

Easy transfer of ownership: In the case of a company the ownership is transferred only by the transferring the shares of the company.

To identify:

The true statements about Characteristic of a corporate form of organization

Expert Solution & Answer

Explanation of Solution

The true statements about Characteristic of a corporate form of organization are following:

1. Ownership rights cannot be easily transferred.

4. Corporate income that is usually taxed twice.

5. It is a separate legal entity.

7. Owners are not agents of the corporation

Following other statements are false for the corporate form of organization:

2. Owners have unlimited liability for corporate debts.

3. Capital is more easily accumulated than with most other forms of organization

6. It has a limited life.

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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 1QS

To determine

Concept Introduction:

The Corporate form of organization:

There are several forms of business organizations like proprietorship, partnership, limited liability partnership, Corporation etc. The 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.

Characteristic of a corporation are as follows:

Separate legal entity: The Corporate form of business has its own legal identity and owners are personally liable for the debt of the corporation.

Easy availability of funds: As compared with other business form, a corporate form of business can easily raise find by making public issues of its shares.

Separate taxability: The Corporate form of business has its own legal identity and hence it is separately taxed. Hence owners are not liable for the tax liability of the company.

Limited liability of shareholders: Shareholders or owners of the company have limited liability. They are not personally liable for the debts of the company.

Easy transfer of ownership: In the case of a company the ownership is transferred only by the transferring the shares of the company.

To identify:

The true statements about Characteristic of a corporate form of organization

Expert Solution & Answer

Explanation of Solution

The true statements about Characteristic of a corporate form of organization are following:

1. Ownership rights cannot be easily transferred.

4. Corporate income that is usually taxed twice.

5. It is a separate legal entity.

7. Owners are not agents of the corporation

Following other statements are false for the corporate form of organization:

2. Owners have unlimited liability for corporate debts.

3. Capital is more easily accumulated than with most other forms of organization

6. It has a limited life.

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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 13, Problem 1QS

To determine

Concept Introduction:

The Corporate form of organization:

There are several forms of business organizations like proprietorship, partnership, limited liability partnership, Corporation etc. The 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.

Characteristic of a corporation are as follows:

Separate legal entity: The Corporate form of business has its own legal identity and owners are personally liable for the debt of the corporation.

Easy availability of funds: As compared with other business form, a corporate form of business can easily raise find by making public issues of its shares.

Separate taxability: The Corporate form of business has its own legal identity and hence it is separately taxed. Hence owners are not liable for the tax liability of the company.

Limited liability of shareholders: Shareholders or owners of the company have limited liability. They are not personally liable for the debts of the company.

Easy transfer of ownership: In the case of a company the ownership is transferred only by the transferring the shares of the company.

To identify:

The true statements about Characteristic of a corporate form of organization

Expert Solution & Answer

Explanation of Solution

The true statements about Characteristic of a corporate form of organization are following:

1. Ownership rights cannot be easily transferred.

4. Corporate income that is usually taxed twice.

5. It is a separate legal entity.

7. Owners are not agents of the corporation

Following other statements are false for the corporate form of organization:

2. Owners have unlimited liability for corporate debts.

3. Capital is more easily accumulated than with most other forms of organization

6. It has a limited life.

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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 1QS

To determine

Concept Introduction:

The Corporate form of organization:

There are several forms of business organizations like proprietorship, partnership, limited liability partnership, Corporation etc. The 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.

Characteristic of a corporation are as follows:

Separate legal entity: The Corporate form of business has its own legal identity and owners are personally liable for the debt of the corporation.

Easy availability of funds: As compared with other business form, a corporate form of business can easily raise find by making public issues of its shares.

Separate taxability: The Corporate form of business has its own legal identity and hence it is separately taxed. Hence owners are not liable for the tax liability of the company.

Limited liability of shareholders: Shareholders or owners of the company have limited liability. They are not personally liable for the debts of the company.

Easy transfer of ownership: In the case of a company the ownership is transferred only by the transferring the shares of the company.

To identify:

The true statements about Characteristic of a corporate form of organization

Expert Solution & Answer

Explanation of Solution

The true statements about Characteristic of a corporate form of organization are following:

1. Ownership rights cannot be easily transferred.

4. Corporate income that is usually taxed twice.

5. It is a separate legal entity.

7. Owners are not agents of the corporation

Following other statements are false for the corporate form of organization:

2. Owners have unlimited liability for corporate debts.

3. Capital is more easily accumulated than with most other forms of organization

6. It has a limited life.

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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 1QS

To determine

Concept Introduction:

The Corporate form of organization:

There are several forms of business organizations like proprietorship, partnership, limited liability partnership, Corporation etc. The 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.

Characteristic of a corporation are as follows:

Separate legal entity: The Corporate form of business has its own legal identity and owners are personally liable for the debt of the corporation.

Easy availability of funds: As compared with other business form, a corporate form of business can easily raise find by making public issues of its shares.

Separate taxability: The Corporate form of business has its own legal identity and hence it is separately taxed. Hence owners are not liable for the tax liability of the company.

Limited liability of shareholders: Shareholders or owners of the company have limited liability. They are not personally liable for the debts of the company.

Easy transfer of ownership: In the case of a company the ownership is transferred only by the transferring the shares of the company.

To identify:

The true statements about Characteristic of a corporate form of organization

Expert Solution & Answer

Explanation of Solution

The true statements about Characteristic of a corporate form of organization are following:

1. Ownership rights cannot be easily transferred.

4. Corporate income that is usually taxed twice.

5. It is a separate legal entity.

7. Owners are not agents of the corporation

Following other statements are false for the corporate form of organization:

2. Owners have unlimited liability for corporate debts.

3. Capital is more easily accumulated than with most other forms of organization

6. It has a limited life.

Answer 6

Chapter 13, Problem 1QS

To determine

Concept Introduction:

The Corporate form of organization:

There are several forms of business organizations like proprietorship, partnership, limited liability partnership, Corporation etc. The 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.

Characteristic of a corporation are as follows:

Separate legal entity: The Corporate form of business has its own legal identity and owners are personally liable for the debt of the corporation.

Easy availability of funds: As compared with other business form, a corporate form of business can easily raise find by making public issues of its shares.

Separate taxability: The Corporate form of business has its own legal identity and hence it is separately taxed. Hence owners are not liable for the tax liability of the company.

Limited liability of shareholders: Shareholders or owners of the company have limited liability. They are not personally liable for the debts of the company.

Easy transfer of ownership: In the case of a company the ownership is transferred only by the transferring the shares of the company.

To identify:

The true statements about Characteristic of a corporate form of organization

Expert Solution & Answer

Explanation of Solution

The true statements about Characteristic of a corporate form of organization are following:

1. Ownership rights cannot be easily transferred.

4. Corporate income that is usually taxed twice.

5. It is a separate legal entity.

7. Owners are not agents of the corporation

Following other statements are false for the corporate form of organization:

2. Owners have unlimited liability for corporate debts.

3. Capital is more easily accumulated than with most other forms of organization

6. It has a limited life.

Answer 7

Chapter 13, Problem 1QS

To determine

Concept Introduction:

The Corporate form of organization:

There are several forms of business organizations like proprietorship, partnership, limited liability partnership, Corporation etc. The 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.

Characteristic of a corporation are as follows:

Separate legal entity: The Corporate form of business has its own legal identity and owners are personally liable for the debt of the corporation.

Easy availability of funds: As compared with other business form, a corporate form of business can easily raise find by making public issues of its shares.

Separate taxability: The Corporate form of business has its own legal identity and hence it is separately taxed. Hence owners are not liable for the tax liability of the company.

Limited liability of shareholders: Shareholders or owners of the company have limited liability. They are not personally liable for the debts of the company.

Easy transfer of ownership: In the case of a company the ownership is transferred only by the transferring the shares of the company.

To identify:

The true statements about Characteristic of a corporate form of organization

Answer 8

Expert Solution & Answer

Explanation of Solution

The true statements about Characteristic of a corporate form of organization are following:

1. Ownership rights cannot be easily transferred.

4. Corporate income that is usually taxed twice.

5. It is a separate legal entity.

7. Owners are not agents of the corporation

Following other statements are false for the corporate form of organization:

2. Owners have unlimited liability for corporate debts.

3. Capital is more easily accumulated than with most other forms of organization

6. It has a limited life.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 13 - Prob. 1QS Ch. 13 - Prob. 2QS Ch. 13 - Prob. 3QS Ch. 13 - Prob. 4QS Ch. 13 - Prob. 5QS Ch. 13 - Prob. 6QS Ch. 13 - Prob. 7QS Ch. 13 - Prob. 8QS Ch. 13 - Prob. 9QS Ch. 13 - Prob. 10QS

Explanation of Solution

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Chapter 13 Solutions