Describe the advantages and the disadvantages of operating a business as a partnership rather than as a corporation.

Question

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Answer 1

Question

Chapter 14, Problem 1Q

To determine

Describe the advantages and the disadvantages of operating a business as a partnership rather than as a corporation.

Expert Solution & Answer

Explanation of Solution

The advantages of operating a business as a partnership rather than as a corporation are:

The ability to make virtually arrangements defining their relationship to each other that the partners desire.
Less hassle of forming a partnership.
Fixed oral agreement is required to form a partnership.
Operating costs are reduced and partners can make decisions which they desire.
Partnership can claim losses as tax and do not pay taxes.

The disadvantages of operating a business as a partnership rather than as a corporation are:

Partners have unlimited liability.
Every partner is liable to pay the debts incurred.

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Students have asked these similar questions

How does running a company as a partnership as opposed to a corporation benefit the parties involved? What are the drawbacks of this approach?

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What are the benefits of the corporation in comparison with the partnership and proprietorship structures? How is equity treated and reported differently in this structure?

Answer 2

Question

Chapter 14, Problem 1Q

To determine

Describe the advantages and the disadvantages of operating a business as a partnership rather than as a corporation.

Expert Solution & Answer

Explanation of Solution

The advantages of operating a business as a partnership rather than as a corporation are:

The ability to make virtually arrangements defining their relationship to each other that the partners desire.
Less hassle of forming a partnership.
Fixed oral agreement is required to form a partnership.
Operating costs are reduced and partners can make decisions which they desire.
Partnership can claim losses as tax and do not pay taxes.

The disadvantages of operating a business as a partnership rather than as a corporation are:

Partners have unlimited liability.
Every partner is liable to pay the debts incurred.

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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

Chapter 14, Problem 1Q

To determine

Describe the advantages and the disadvantages of operating a business as a partnership rather than as a corporation.

Expert Solution & Answer

Explanation of Solution

The advantages of operating a business as a partnership rather than as a corporation are:

The ability to make virtually arrangements defining their relationship to each other that the partners desire.
Less hassle of forming a partnership.
Fixed oral agreement is required to form a partnership.
Operating costs are reduced and partners can make decisions which they desire.
Partnership can claim losses as tax and do not pay taxes.

The disadvantages of operating a business as a partnership rather than as a corporation are:

Partners have unlimited liability.
Every partner is liable to pay the debts incurred.

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Answer 4

Question

Chapter 14, Problem 1Q

To determine

Describe the advantages and the disadvantages of operating a business as a partnership rather than as a corporation.

Expert Solution & Answer

Explanation of Solution

The advantages of operating a business as a partnership rather than as a corporation are:

The ability to make virtually arrangements defining their relationship to each other that the partners desire.
Less hassle of forming a partnership.
Fixed oral agreement is required to form a partnership.
Operating costs are reduced and partners can make decisions which they desire.
Partnership can claim losses as tax and do not pay taxes.

The disadvantages of operating a business as a partnership rather than as a corporation are:

Partners have unlimited liability.
Every partner is liable to pay the debts incurred.

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Answer 5

Chapter 14, Problem 1Q

To determine

Describe the advantages and the disadvantages of operating a business as a partnership rather than as a corporation.

Expert Solution & Answer

Explanation of Solution

The advantages of operating a business as a partnership rather than as a corporation are:

The ability to make virtually arrangements defining their relationship to each other that the partners desire.
Less hassle of forming a partnership.
Fixed oral agreement is required to form a partnership.
Operating costs are reduced and partners can make decisions which they desire.
Partnership can claim losses as tax and do not pay taxes.

The disadvantages of operating a business as a partnership rather than as a corporation are:

Partners have unlimited liability.
Every partner is liable to pay the debts incurred.

Answer 6

Chapter 14, Problem 1Q

To determine

Describe the advantages and the disadvantages of operating a business as a partnership rather than as a corporation.

Expert Solution & Answer

Explanation of Solution

The advantages of operating a business as a partnership rather than as a corporation are:

The ability to make virtually arrangements defining their relationship to each other that the partners desire.
Less hassle of forming a partnership.
Fixed oral agreement is required to form a partnership.
Operating costs are reduced and partners can make decisions which they desire.
Partnership can claim losses as tax and do not pay taxes.

The disadvantages of operating a business as a partnership rather than as a corporation are:

Partners have unlimited liability.
Every partner is liable to pay the debts incurred.

Answer 7

Chapter 14, Problem 1Q

To determine

Describe the advantages and the disadvantages of operating a business as a partnership rather than as a corporation.

Answer 8

Expert Solution & Answer

Explanation of Solution

The advantages of operating a business as a partnership rather than as a corporation are:

The ability to make virtually arrangements defining their relationship to each other that the partners desire.
Less hassle of forming a partnership.
Fixed oral agreement is required to form a partnership.
Operating costs are reduced and partners can make decisions which they desire.
Partnership can claim losses as tax and do not pay taxes.

The disadvantages of operating a business as a partnership rather than as a corporation are:

Partners have unlimited liability.
Every partner is liable to pay the debts incurred.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 14 - Prob. 1Q Ch. 14 - Prob. 2Q Ch. 14 - Prob. 3Q Ch. 14 - Prob. 4Q Ch. 14 - Prob. 5Q Ch. 14 - Prob. 6Q Ch. 14 - Prob. 7Q Ch. 14 - Prob. 8Q Ch. 14 - Prob. 9Q Ch. 14 - Prob. 10Q

Describe the advantages and the disadvantages of operating a business as a partnership rather than as a corporation.

Describe the advantages and the disadvantages of operating a business as a partnership rather than as a corporation.

Explanation of Solution

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Chapter 14 Solutions