The form of a business indicates its legal status and identification. Some forms of a business are proprietorship, partnership , and corporation. Each form of the business has different characteristics and form of business used as per the need of the business. A partnership is a form of the business in which two or more persons join the business as partners. To indicate: the priority of partnership liabilities at the time of its liquidation.

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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 16, Problem 16.2Q

To determine

Concept Introduction:

The form of a business indicates its legal status and identification. Some forms of a business are proprietorship, partnership, and corporation. Each form of the business has different characteristics and form of business used as per the need of the business. A partnership is a form of the business in which two or more persons join the business as partners.

To indicate: the priority of partnership liabilities at the time of its liquidation.

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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 16, Problem 16.2Q

To determine

Concept Introduction:

The form of a business indicates its legal status and identification. Some forms of a business are proprietorship, partnership, and corporation. Each form of the business has different characteristics and form of business used as per the need of the business. A partnership is a form of the business in which two or more persons join the business as partners.

To indicate: the priority of partnership liabilities at the time of its liquidation.

Expert Solution & Answer

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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 16, Problem 16.2Q

To determine

Concept Introduction:

The form of a business indicates its legal status and identification. Some forms of a business are proprietorship, partnership, and corporation. Each form of the business has different characteristics and form of business used as per the need of the business. A partnership is a form of the business in which two or more persons join the business as partners.

To indicate: the priority of partnership liabilities at the time of its liquidation.

Expert Solution & Answer

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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 16, Problem 16.2Q

To determine