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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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

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1: An employer in Cleveland, OH, employs two individuals, whose taxable earnings to date (prior to the current pay period) are $5,000 and $12,000. During the current pay period, these employees earn $1,800 and $2,000, respectively. FUTA tax = $ 126.66 2: An employer in Nesconset, NY, employs three individuals, whose taxable earnings to date (prior to the current pay period) are $6,900, $1,000, and $24,200. During the current pay period, these employees earn $2,400, $1,750, and $3,000, respectively. FUTA tax = $ 235.50 × 3: An employer in The U.S. Virgin Islands employs two individuals, whose taxable earnings to date (prior to the current pay period) are $8,500, and $3,400. During the current pay period, these employees earn $880 and $675, respectively. FUTA tax = $ 664.50 × 4: An employer in Cary, NC, employs three individuals, whose taxable earnings to date (prior to the current pay period) are $5,900, $8,900, and $6,600. During the current pay period, these employees earn $940,…

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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 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

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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 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

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 13, Problem 1QS

To determine