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

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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 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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Required Information [The following Information applies to the questions displayed below.] Sparrow Company uses the retail Inventory method to estimate ending Inventory and cost of goods sold. Data for 2024 are as follows: Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns Cost 97,000 Retail $ 187,000 363,000 587,000 9,700 7,700 11,700 16,700 12,700 3,700 5,546 8,700 547,000 10,700 The company records sales net of employee discounts. Employee discounts for 2024 totaled $4,700. 2. Estimate Sparrow's ending Inventory and cost of goods sold for the year using the retail Inventory method and the conventional application. Note: Round Cost-to-retall percentage to 2 decimal places and final answers to the nearest whole dollar amount. Answer is complete but not entirely correct. Conventional application Estimated ending inventory at retail $ 705,200 x Estimated ending inventory at cost S 417,878 x Estimated…

I am looking for the correct answer to this general accounting question with appropriate explanations.

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 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 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 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.

Want to see more full solutions like this?

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

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 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.

Want to see more full solutions like this?

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

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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