Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Question
Chapter 14, Problem 5Q
To determine
The advantages and disadvantages of these legal forms which a company is being created and the owners are trying to decide whether to form a general partnership, a limited liability partnership or a limited liability company.
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How does running a company as a partnership as opposed to a corporation benefit the parties involved? What are the drawbacks of this approach?
What does it mean to be a company? Instead of forming a partnership, why would the founders of the company choose to do so instead? What are the benefits and drawbacks of forming a company?
1.What are the main advantages of proprietorships, partnerships, and limited liability companies?
2.What are the disadvantages of a partnership over a limited liability company form of organization for a profit-making business?
Chapter 14 Solutions
Advanced Accounting
Ch. 14 - Prob. 1QCh. 14 - Prob. 2QCh. 14 - Prob. 3QCh. 14 - Prob. 4QCh. 14 - Prob. 5QCh. 14 - Prob. 6QCh. 14 - Prob. 7QCh. 14 - Prob. 8QCh. 14 - Prob. 9QCh. 14 - Prob. 10Q
Ch. 14 - Prob. 11QCh. 14 - Prob. 12QCh. 14 - What is a partnership dissolution? Does...Ch. 14 - Prob. 14QCh. 14 - Prob. 15QCh. 14 - Prob. 16QCh. 14 - Prob. 17QCh. 14 - When a partner withdraws from a partnership, why...Ch. 14 - Prob. 1PCh. 14 - Prob. 2PCh. 14 - Prob. 3PCh. 14 - Prob. 4PCh. 14 - Prob. 5PCh. 14 - Prob. 6PCh. 14 - Prob. 7PCh. 14 - Prob. 8PCh. 14 - Prob. 9PCh. 14 - Prob. 10PCh. 14 - Prob. 11PCh. 14 - Prob. 12PCh. 14 - Prob. 13PCh. 14 - Prob. 14PCh. 14 - Prob. 15PCh. 14 - Prob. 16PCh. 14 - Prob. 17PCh. 14 - Prob. 18PCh. 14 - Prob. 19P
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Similar questions
- Two of the business organizational forms your book talks about are limited liability company (LLC) and partnership. What is a limited liability company (LLC)? And how does it differ from partnership? Identify three ways in which they differ, Be brief and to the point.arrow_forwardExplain the advantages and disadvantages of the partnership versus the corporate form of business.arrow_forwardWhat are the main advantages of a company compared to a sole trader and a partnership?arrow_forward
- What are the major features of a partnership agreement for a partnership or an operating agreement for a limited liability company?arrow_forwardWhich form of business structure typically has the greatest potential for agency problems? Limited partnership General partnership Sole proprietorship Limited liability company Corporationarrow_forwardselect the form to organize your business: partnership, Limited Liability Company (LLC), S-Corporation, or regular corporation. What’s your final decision, and why you choose what you selected, and why you didn’t choose what you didn’t select.arrow_forward
- How do you distinguish a partnership from a corporation? How do you distinguish a public partnership from a public corporation? If you were starting a business with a friend and only had a choice between a partnership and corporation, which would you choose and why?arrow_forwardWhat is the primary difference between forming a real estate endeavor as a company and forming a general partnership in real estate? In what ways does a limited partnership have some of the features of both types of organizations?arrow_forwardWhat is a corporation? Why might founders have chosen to form a corporation rather than a partnership? What are the advantages and disadvantages of incorporation?arrow_forward
- Explain and enumerate the differences between a Partnership and a Corporation.arrow_forwardWhich of the following is a reason to use a partnership as the legal form of a business? A. Partnerships avoid the difficulty of raising capital. B. Partnerships avoid the issue of mutual agency. C. Partnerships avoid the issue of double-taxation faced by corporations. D. Partnerships avoid the issue of unlimited liability.arrow_forwardBusinesses can be classified into the following forms: sole proprietorship, partnership, corporation, limited liability company (LLC), and limited liability partnership (LLP). Different forms of businesses have different characteristics. Which of the following characteristics would apply to a limited liability company and a limited liability partnership? Check all that apply. LLPs are not suitable for professional firms such as accounting, law, and architecture Limited financial liability Taxed as a partnership Have corporate ownership structure Owned by single individual Owners have limited liability and right to votearrow_forward
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