People start their own business and select the form of organisation depend upon their need and kind of their business. Over the other form of organisation, partnership have some different advantages. To Explain: The major characteristics of a partnership firm that might influence the people decision.

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 1UTI

To determine

Concept Introduction:

People start their own business and select the form of organisation depend upon their need and kind of their business. Over the other form of organisation, partnership have some different advantages.

To Explain:

The major characteristics of a partnership firm that might influence the people decision.

Expert Solution & Answer

Answer to Problem 1UTI

People choose the partnership form of organization as it has distinct advantages.

Explanation of Solution

The characteristics of partnership form of organization are as follows:

The process for formation of partnership firm is simple and convenient.
Partnership is an association between the persons who has a good faith with each other and has a good knowledge of conducting business and have a common objective of achieving a financial goal.
All the partners of the partnership firm are the joint owner of the business property.
One partner act will bind the other partners and partnership firm also, even in any wrongful act.
The partners are jointly and severally liable for the partnership firm if partnership deed is made of general liability. And if partnership deed is made of limited liability than each partners liability is limited to the extend of his investment only.
Currently, Limited Liability Partnership (LLP) form of partnership has developed, in this partners liability is limited yet they can participate in the management. In LLP, any obligation created by one partner cannot be recovered from the other partners.

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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 1UTI

To determine

Concept Introduction:

People start their own business and select the form of organisation depend upon their need and kind of their business. Over the other form of organisation, partnership have some different advantages.

To Explain:

The major characteristics of a partnership firm that might influence the people decision.

Expert Solution & Answer

Answer to Problem 1UTI

People choose the partnership form of organization as it has distinct advantages.

Explanation of Solution

The characteristics of partnership form of organization are as follows:

The process for formation of partnership firm is simple and convenient.
Partnership is an association between the persons who has a good faith with each other and has a good knowledge of conducting business and have a common objective of achieving a financial goal.
All the partners of the partnership firm are the joint owner of the business property.
One partner act will bind the other partners and partnership firm also, even in any wrongful act.
The partners are jointly and severally liable for the partnership firm if partnership deed is made of general liability. And if partnership deed is made of limited liability than each partners liability is limited to the extend of his investment only.
Currently, Limited Liability Partnership (LLP) form of partnership has developed, in this partners liability is limited yet they can participate in the management. In LLP, any obligation created by one partner cannot be recovered from the other partners.

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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 1UTI

To determine

Concept Introduction:

People start their own business and select the form of organisation depend upon their need and kind of their business. Over the other form of organisation, partnership have some different advantages.

To Explain:

The major characteristics of a partnership firm that might influence the people decision.

Expert Solution & Answer

Answer to Problem 1UTI

People choose the partnership form of organization as it has distinct advantages.

Explanation of Solution

The characteristics of partnership form of organization are as follows:

The process for formation of partnership firm is simple and convenient.
Partnership is an association between the persons who has a good faith with each other and has a good knowledge of conducting business and have a common objective of achieving a financial goal.
All the partners of the partnership firm are the joint owner of the business property.
One partner act will bind the other partners and partnership firm also, even in any wrongful act.
The partners are jointly and severally liable for the partnership firm if partnership deed is made of general liability. And if partnership deed is made of limited liability than each partners liability is limited to the extend of his investment only.
Currently, Limited Liability Partnership (LLP) form of partnership has developed, in this partners liability is limited yet they can participate in the management. In LLP, any obligation created by one partner cannot be recovered from the other partners.

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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 1UTI

To determine

Concept Introduction:

People start their own business and select the form of organisation depend upon their need and kind of their business. Over the other form of organisation, partnership have some different advantages.

To Explain:

The major characteristics of a partnership firm that might influence the people decision.

Expert Solution & Answer

Answer to Problem 1UTI

People choose the partnership form of organization as it has distinct advantages.

Explanation of Solution

The characteristics of partnership form of organization are as follows:

The process for formation of partnership firm is simple and convenient.
Partnership is an association between the persons who has a good faith with each other and has a good knowledge of conducting business and have a common objective of achieving a financial goal.
All the partners of the partnership firm are the joint owner of the business property.
One partner act will bind the other partners and partnership firm also, even in any wrongful act.
The partners are jointly and severally liable for the partnership firm if partnership deed is made of general liability. And if partnership deed is made of limited liability than each partners liability is limited to the extend of his investment only.
Currently, Limited Liability Partnership (LLP) form of partnership has developed, in this partners liability is limited yet they can participate in the management. In LLP, any obligation created by one partner cannot be recovered from the other partners.

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Answer 5

Chapter 13, Problem 1UTI

To determine

Concept Introduction:

People start their own business and select the form of organisation depend upon their need and kind of their business. Over the other form of organisation, partnership have some different advantages.

To Explain:

The major characteristics of a partnership firm that might influence the people decision.

Expert Solution & Answer

Answer to Problem 1UTI

People choose the partnership form of organization as it has distinct advantages.

Explanation of Solution

The characteristics of partnership form of organization are as follows:

The process for formation of partnership firm is simple and convenient.
Partnership is an association between the persons who has a good faith with each other and has a good knowledge of conducting business and have a common objective of achieving a financial goal.
All the partners of the partnership firm are the joint owner of the business property.
One partner act will bind the other partners and partnership firm also, even in any wrongful act.
The partners are jointly and severally liable for the partnership firm if partnership deed is made of general liability. And if partnership deed is made of limited liability than each partners liability is limited to the extend of his investment only.
Currently, Limited Liability Partnership (LLP) form of partnership has developed, in this partners liability is limited yet they can participate in the management. In LLP, any obligation created by one partner cannot be recovered from the other partners.

Answer 6

Chapter 13, Problem 1UTI

To determine

Concept Introduction:

People start their own business and select the form of organisation depend upon their need and kind of their business. Over the other form of organisation, partnership have some different advantages.

To Explain:

The major characteristics of a partnership firm that might influence the people decision.

Expert Solution & Answer

Answer to Problem 1UTI

People choose the partnership form of organization as it has distinct advantages.

Explanation of Solution

The characteristics of partnership form of organization are as follows:

The process for formation of partnership firm is simple and convenient.
Partnership is an association between the persons who has a good faith with each other and has a good knowledge of conducting business and have a common objective of achieving a financial goal.
All the partners of the partnership firm are the joint owner of the business property.
One partner act will bind the other partners and partnership firm also, even in any wrongful act.
The partners are jointly and severally liable for the partnership firm if partnership deed is made of general liability. And if partnership deed is made of limited liability than each partners liability is limited to the extend of his investment only.
Currently, Limited Liability Partnership (LLP) form of partnership has developed, in this partners liability is limited yet they can participate in the management. In LLP, any obligation created by one partner cannot be recovered from the other partners.

Answer 7

Chapter 13, Problem 1UTI

To determine

Concept Introduction:

People start their own business and select the form of organisation depend upon their need and kind of their business. Over the other form of organisation, partnership have some different advantages.

To Explain:

The major characteristics of a partnership firm that might influence the people decision.

Answer 8

Expert Solution & Answer

Answer to Problem 1UTI

People choose the partnership form of organization as it has distinct advantages.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

The characteristics of partnership form of organization are as follows:

The process for formation of partnership firm is simple and convenient.
Partnership is an association between the persons who has a good faith with each other and has a good knowledge of conducting business and have a common objective of achieving a financial goal.
All the partners of the partnership firm are the joint owner of the business property.
One partner act will bind the other partners and partnership firm also, even in any wrongful act.
The partners are jointly and severally liable for the partnership firm if partnership deed is made of general liability. And if partnership deed is made of limited liability than each partners liability is limited to the extend of his investment only.
Currently, Limited Liability Partnership (LLP) form of partnership has developed, in this partners liability is limited yet they can participate in the management. In LLP, any obligation created by one partner cannot be recovered from the other partners.

Answer 12

Ch. 13 - Prob. 1UTI Ch. 13 - Under what circumstances might a salary or bonus...Ch. 13 - Prob. 3UTI Ch. 13 - Prob. 4UTI Ch. 13 - Prob. 1E Ch. 13 - Prob. 2E Ch. 13 - Prob. 3.1E Ch. 13 - Prob. 3.2E Ch. 13 - Prob. 3.3E Ch. 13 - Prob. 4E

Answer to Problem 1UTI

Explanation of Solution

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Chapter 13 Solutions