Identify whether the given statement is true or false.

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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 20, Problem 1TF

To determine

Identify whether the given statement is true or false.

Expert Solution & Answer

Answer to Problem 1TF

The given statement “Corporations do more dollar volume of business than sole proprietorships and partnerships combined” is true.

Explanation of Solution

Corporation:

Corporation is the form of organization that has legal existence that is owned and controlled as a single organization which is Separate from its owners.

Corporate form of business offers certain advantages while comparing to sole proprietorship and partnerships and they are listed as follows:

Limited liability of owners:

The liability of the corporation is limited to the extent of the face value of shares. Thus, the members of the corporation are not asked to contribute more than the face value of shares which are held by them in order to pay the liabilities of the Corporation.

No Mutual agency:

Each owner has the right to act as agents and can engage in contracts for the business in a mutual agency. But, in a corporation individual owners do not have the power to negotiate contracts unless the other owners grant for it.

Transferable ownership units:

In a corporation, capital stock is divided into shares which represent the ownership rights of its member. The ownership of shares can be transferred from one person to another person without any conditions and without troubling the normal activities of corporation.

Indefinite life:

The existence of the Corporation remains unaffected even if there is any insolvency, death, retirement among the members. Thus, the corporation has indefinite life and it continues to operate its business irrespective of any circumstances.

Ease of raising capital:

Corporation acquires capital by selling its additional shares of stock because transferable ownership units and limited liability act as an attractive characteristic for people to make investment in corporation.

Corporation plays a vital role in the economy. The goods and services sold by Corporations are more in total than sole proprietorship and partnership combined together. Therefore, according to the above explanation the given statement “Corporations do more dollar volume of business than sole proprietorships and partnerships combined” is true.

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Coronado Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher. The home model is a high-volume (54,000 units), half-gallon cylinder that holds 2 1/2 pounds of multi- purpose dry chemical at 480 PSI. The commercial model is a low-volume (10,200 units), two-gallon cylinder that holds 10 pounds of multi-purpose dry chemical at 390 PSI. Both products require 1.5 hours of direct labor for completion. Therefore, total annual direct labor hours are 96,300 or [1.5 hours x (54,000+10,200)]. Estimated annual manufacturing overhead is $1,566,090. Thus, the predetermined overhead rate is $16.26 or ($1,566,090 ÷ 96,300) per direct labor hour. The direct materials cost per unit is $18.50 for the home model and $26.50 for the commercial model. The direct labor cost is $19 per unit for both the home and the commercial models. The company's managers identified six activity cost pools and related…

Coronado Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher. The home model is a high-volume (54,000 units), half-gallon cylinder that holds 2 1/2 pounds of multi- purpose dry chemical at 480 PSI. The commercial model is a low-volume (10,200 units), two-gallon cylinder that holds 10 pounds of multi-purpose dry chemical at 390 PSI. Both products require 1.5 hours of direct labor for completion. Therefore, total annual direct labor hours are 96,300 or [1.5 hours x (54,000+ 10,200)]. Estimated annual manufacturing overhead is $1,566,090. Thus, the predetermined overhead rate is $16.26 or ($1,566,090 ÷ 96,300) per direct labor hour. The direct materials cost per unit is $18.50 for the home model and $26.50 for the commercial model. The direct labor cost is $19 per unit for both the home and the commercial models. The company's managers identified six activity cost pools and related…

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 20, Problem 1TF

To determine

Identify whether the given statement is true or false.

Expert Solution & Answer

Answer to Problem 1TF

The given statement “Corporations do more dollar volume of business than sole proprietorships and partnerships combined” is true.

Explanation of Solution

Corporation:

Corporation is the form of organization that has legal existence that is owned and controlled as a single organization which is Separate from its owners.

Corporate form of business offers certain advantages while comparing to sole proprietorship and partnerships and they are listed as follows:

Limited liability of owners:

The liability of the corporation is limited to the extent of the face value of shares. Thus, the members of the corporation are not asked to contribute more than the face value of shares which are held by them in order to pay the liabilities of the Corporation.

No Mutual agency:

Each owner has the right to act as agents and can engage in contracts for the business in a mutual agency. But, in a corporation individual owners do not have the power to negotiate contracts unless the other owners grant for it.

Transferable ownership units:

In a corporation, capital stock is divided into shares which represent the ownership rights of its member. The ownership of shares can be transferred from one person to another person without any conditions and without troubling the normal activities of corporation.

Indefinite life:

The existence of the Corporation remains unaffected even if there is any insolvency, death, retirement among the members. Thus, the corporation has indefinite life and it continues to operate its business irrespective of any circumstances.

Ease of raising capital:

Corporation acquires capital by selling its additional shares of stock because transferable ownership units and limited liability act as an attractive characteristic for people to make investment in corporation.

Corporation plays a vital role in the economy. The goods and services sold by Corporations are more in total than sole proprietorship and partnership combined together. Therefore, according to the above explanation the given statement “Corporations do more dollar volume of business than sole proprietorships and partnerships combined” is true.

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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 20, Problem 1TF

To determine

Identify whether the given statement is true or false.

Expert Solution & Answer

Answer to Problem 1TF

The given statement “Corporations do more dollar volume of business than sole proprietorships and partnerships combined” is true.

Explanation of Solution

Corporation:

Corporation is the form of organization that has legal existence that is owned and controlled as a single organization which is Separate from its owners.

Corporate form of business offers certain advantages while comparing to sole proprietorship and partnerships and they are listed as follows:

Limited liability of owners:

The liability of the corporation is limited to the extent of the face value of shares. Thus, the members of the corporation are not asked to contribute more than the face value of shares which are held by them in order to pay the liabilities of the Corporation.

No Mutual agency:

Each owner has the right to act as agents and can engage in contracts for the business in a mutual agency. But, in a corporation individual owners do not have the power to negotiate contracts unless the other owners grant for it.

Transferable ownership units:

In a corporation, capital stock is divided into shares which represent the ownership rights of its member. The ownership of shares can be transferred from one person to another person without any conditions and without troubling the normal activities of corporation.

Indefinite life:

The existence of the Corporation remains unaffected even if there is any insolvency, death, retirement among the members. Thus, the corporation has indefinite life and it continues to operate its business irrespective of any circumstances.

Ease of raising capital:

Corporation acquires capital by selling its additional shares of stock because transferable ownership units and limited liability act as an attractive characteristic for people to make investment in corporation.

Corporation plays a vital role in the economy. The goods and services sold by Corporations are more in total than sole proprietorship and partnership combined together. Therefore, according to the above explanation the given statement “Corporations do more dollar volume of business than sole proprietorships and partnerships combined” is true.

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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 20, Problem 1TF

To determine

Identify whether the given statement is true or false.

Expert Solution & Answer

Answer to Problem 1TF

The given statement “Corporations do more dollar volume of business than sole proprietorships and partnerships combined” is true.

Explanation of Solution

Corporation:

Corporation is the form of organization that has legal existence that is owned and controlled as a single organization which is Separate from its owners.

Corporate form of business offers certain advantages while comparing to sole proprietorship and partnerships and they are listed as follows:

Limited liability of owners:

The liability of the corporation is limited to the extent of the face value of shares. Thus, the members of the corporation are not asked to contribute more than the face value of shares which are held by them in order to pay the liabilities of the Corporation.

No Mutual agency:

Each owner has the right to act as agents and can engage in contracts for the business in a mutual agency. But, in a corporation individual owners do not have the power to negotiate contracts unless the other owners grant for it.

Transferable ownership units:

In a corporation, capital stock is divided into shares which represent the ownership rights of its member. The ownership of shares can be transferred from one person to another person without any conditions and without troubling the normal activities of corporation.

Indefinite life:

The existence of the Corporation remains unaffected even if there is any insolvency, death, retirement among the members. Thus, the corporation has indefinite life and it continues to operate its business irrespective of any circumstances.

Ease of raising capital:

Corporation acquires capital by selling its additional shares of stock because transferable ownership units and limited liability act as an attractive characteristic for people to make investment in corporation.

Corporation plays a vital role in the economy. The goods and services sold by Corporations are more in total than sole proprietorship and partnership combined together. Therefore, according to the above explanation the given statement “Corporations do more dollar volume of business than sole proprietorships and partnerships combined” is true.

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 20, Problem 1TF

To determine

Identify whether the given statement is true or false.

Expert Solution & Answer

Answer to Problem 1TF

The given statement “Corporations do more dollar volume of business than sole proprietorships and partnerships combined” is true.

Explanation of Solution

Corporation:

Corporation is the form of organization that has legal existence that is owned and controlled as a single organization which is Separate from its owners.

Corporate form of business offers certain advantages while comparing to sole proprietorship and partnerships and they are listed as follows:

Limited liability of owners:

The liability of the corporation is limited to the extent of the face value of shares. Thus, the members of the corporation are not asked to contribute more than the face value of shares which are held by them in order to pay the liabilities of the Corporation.

No Mutual agency:

Each owner has the right to act as agents and can engage in contracts for the business in a mutual agency. But, in a corporation individual owners do not have the power to negotiate contracts unless the other owners grant for it.

Transferable ownership units:

In a corporation, capital stock is divided into shares which represent the ownership rights of its member. The ownership of shares can be transferred from one person to another person without any conditions and without troubling the normal activities of corporation.

Indefinite life:

The existence of the Corporation remains unaffected even if there is any insolvency, death, retirement among the members. Thus, the corporation has indefinite life and it continues to operate its business irrespective of any circumstances.

Ease of raising capital:

Corporation acquires capital by selling its additional shares of stock because transferable ownership units and limited liability act as an attractive characteristic for people to make investment in corporation.

Corporation plays a vital role in the economy. The goods and services sold by Corporations are more in total than sole proprietorship and partnership combined together. Therefore, according to the above explanation the given statement “Corporations do more dollar volume of business than sole proprietorships and partnerships combined” is true.

Answer 6

Chapter 20, Problem 1TF

To determine

Identify whether the given statement is true or false.

Expert Solution & Answer

Answer to Problem 1TF

The given statement “Corporations do more dollar volume of business than sole proprietorships and partnerships combined” is true.

Explanation of Solution

Corporation:

Corporation is the form of organization that has legal existence that is owned and controlled as a single organization which is Separate from its owners.

Corporate form of business offers certain advantages while comparing to sole proprietorship and partnerships and they are listed as follows:

Limited liability of owners:

The liability of the corporation is limited to the extent of the face value of shares. Thus, the members of the corporation are not asked to contribute more than the face value of shares which are held by them in order to pay the liabilities of the Corporation.

No Mutual agency:

Each owner has the right to act as agents and can engage in contracts for the business in a mutual agency. But, in a corporation individual owners do not have the power to negotiate contracts unless the other owners grant for it.

Transferable ownership units:

In a corporation, capital stock is divided into shares which represent the ownership rights of its member. The ownership of shares can be transferred from one person to another person without any conditions and without troubling the normal activities of corporation.

Indefinite life:

The existence of the Corporation remains unaffected even if there is any insolvency, death, retirement among the members. Thus, the corporation has indefinite life and it continues to operate its business irrespective of any circumstances.

Ease of raising capital:

Corporation acquires capital by selling its additional shares of stock because transferable ownership units and limited liability act as an attractive characteristic for people to make investment in corporation.

Corporation plays a vital role in the economy. The goods and services sold by Corporations are more in total than sole proprietorship and partnership combined together. Therefore, according to the above explanation the given statement “Corporations do more dollar volume of business than sole proprietorships and partnerships combined” is true.

Answer 7

Chapter 20, Problem 1TF

To determine

Identify whether the given statement is true or false.

Answer 8

Expert Solution & Answer

Answer to Problem 1TF

The given statement “Corporations do more dollar volume of business than sole proprietorships and partnerships combined” is true.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Corporation:

Corporation is the form of organization that has legal existence that is owned and controlled as a single organization which is Separate from its owners.

Corporate form of business offers certain advantages while comparing to sole proprietorship and partnerships and they are listed as follows:

Limited liability of owners:

The liability of the corporation is limited to the extent of the face value of shares. Thus, the members of the corporation are not asked to contribute more than the face value of shares which are held by them in order to pay the liabilities of the Corporation.

No Mutual agency:

Each owner has the right to act as agents and can engage in contracts for the business in a mutual agency. But, in a corporation individual owners do not have the power to negotiate contracts unless the other owners grant for it.

Transferable ownership units:

In a corporation, capital stock is divided into shares which represent the ownership rights of its member. The ownership of shares can be transferred from one person to another person without any conditions and without troubling the normal activities of corporation.

Indefinite life:

The existence of the Corporation remains unaffected even if there is any insolvency, death, retirement among the members. Thus, the corporation has indefinite life and it continues to operate its business irrespective of any circumstances.

Ease of raising capital:

Corporation acquires capital by selling its additional shares of stock because transferable ownership units and limited liability act as an attractive characteristic for people to make investment in corporation.

Corporation plays a vital role in the economy. The goods and services sold by Corporations are more in total than sole proprietorship and partnership combined together. Therefore, according to the above explanation the given statement “Corporations do more dollar volume of business than sole proprietorships and partnerships combined” is true.

Answer 12

Ch. 20 - Prob. 1TF Ch. 20 - Prob. 2TF Ch. 20 - Dividends are not taxable because these earnings...Ch. 20 - Prob. 4TF Ch. 20 - Prob. 5TF Ch. 20 - Prob. 1MC Ch. 20 - Prob. 2MC Ch. 20 - Prob. 3MC Ch. 20 - Stock subscriptions receivable are listed as...Ch. 20 - Treasury stock is listed as a(n) __________ on the...

Identify whether the given statement is true or false.

Identify whether the given statement is true or false.

Answer to Problem 1TF

Explanation of Solution

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Chapter 20 Solutions