Person D decided to start a new business. Person K initially loaned $ 50,000 to person D for an online project on a personal level for the establishment of the business. Person K also provided personal loans for other business expenses and the total of the series of personal loans amounted to $ 2,20,000. D repaid only $ 9000 against the outstanding debt and the petition for bankruptcy was filed by him. D kept no record of the business transaction. The court denied the petition filed by D for the discharge of the debt. To find: The ways by which the individuals seeking funds for online projects avoid personal liability.

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Answer 1

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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 1CT

Summary Introduction

Case summary: Person D decided to start a new business. Person K initially loaned $ 50,000 to person D for an online project on a personal level for the establishment of the business. Person K also provided personal loans for other business expenses and the total of the series of personal loans amounted to $2,20,000. D repaid only $9000 against the outstanding debt and the petition for bankruptcy was filed by him. D kept no record of the business transaction. The court denied the petition filed by D for the discharge of the debt.

To find: The ways by which the individuals seeking funds for online projects avoid personal liability.

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Financial Accounting Question

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Parsons Company is planning to produce 2, 100 units of product in 2017. Each unit requires 2.20 pounds of materials at $6.20 per pound and a half-hour of labor at $12.00 per hour. The overhead rate is 40% of direct labor. (a) Compute the budgeted amounts for 2017 for direct materials to be used, direct labor, and applied overhead. (b) Compute the standard cost of one unit of product.

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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 1CT

Summary Introduction

Case summary: Person D decided to start a new business. Person K initially loaned $ 50,000 to person D for an online project on a personal level for the establishment of the business. Person K also provided personal loans for other business expenses and the total of the series of personal loans amounted to $2,20,000. D repaid only $9000 against the outstanding debt and the petition for bankruptcy was filed by him. D kept no record of the business transaction. The court denied the petition filed by D for the discharge of the debt.

To find: The ways by which the individuals seeking funds for online projects avoid personal liability.

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Answer 3

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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 1CT

Summary Introduction

Case summary: Person D decided to start a new business. Person K initially loaned $ 50,000 to person D for an online project on a personal level for the establishment of the business. Person K also provided personal loans for other business expenses and the total of the series of personal loans amounted to $2,20,000. D repaid only $9000 against the outstanding debt and the petition for bankruptcy was filed by him. D kept no record of the business transaction. The court denied the petition filed by D for the discharge of the debt.

To find: The ways by which the individuals seeking funds for online projects avoid personal liability.

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 1CT

Summary Introduction