State whether the given statement is true or false.
Answer to Problem 1TF
The given statement “When two or more individuals engage in an enterprise as co-owners, the organization is known as a proprietorship” is false.
Explanation of Solution
A partnership is an unincorporated form of business which is formed by an agreement, owned and managed mutually by two or more individuals, who invest their assets in the business and share the liabilities and profits among themselves.
“When two or more individuals engage in an enterprise as co-owners, the organization is known as a partnership”. It is a form of organization which is common to all types of enterprises. However, this form of organization is prevalent in personal service enterprises rather than merchandising businesses.
Therefore, from the above explanation, the given statement “When two or more individuals engage in an enterprise as co-owners, the organization is known as a proprietorship” is false.
Want to see more full solutions like this?
Chapter 19 Solutions
College Accounting, Chapters 1-27
- The concept of an "artificial being" refers to which form of business organization? a. Partnership * O Partnership O Sole proprietorship O Corporation O Limited partnershiparrow_forwardWhich business organization has the most legal formality requirements? a. Corporation b. Partnership c. Joint Ventures d. Sole proprietorshiparrow_forwardThe concept of separate legal entity is applicable to which of the following types of businesses? Sole Proprietorship Partnership Corporation All of the abovearrow_forward
- Association of two or more persons to carry on, as co-owners, a business for profit is known as: a. Limited liability Partnership. b. Proprietorship firm. c. Parent company. d. Corporation.arrow_forwardWhat are the key differences among proprietorships, partnerships, and corporations?arrow_forwardWhich type of business organization is owned by only one owner? a. Corporation b. Partnership c. Sole proprietorship d. Items a, b, and c are all correcarrow_forward
- Which forms of business organization, ownership is readily transferable? a. Corporation b. Sole Proprietorship c. Limited Liability Company d. Partnershiparrow_forward3. Explain the concept of the following Business Ownerships: Sole Proprietorship, Partnership, Corporation, and Cooperation. Describe the advantages and disadvantages of each business.arrow_forwardWhat are the different benefits of being a corporation compared to a sole proprietorship or in a general partnershiparrow_forward
- Which of the following is NOT a form of ownership that the entrepreneur should consider? a. Sole proprietorship b. Limited partnership c. Corporation d. General partnershiparrow_forwardWhich type of financial structure primarily involves one person owning a business? Group of answer choices Partnership Corporations Sole Proprietorship Limited Partnershiparrow_forwardWhich of the following business organization is owned by two or more persons? O a. Company O b. Sole proprietorship O c. Partnership O d. Corporation.arrow_forward
- College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College