Given scenario: It is given that Person X and his three friends would like to open a restaurant, in which Person X has 20 years of experience. Person X thought that he can make some good money if he offered good food. However, they did not have enough amount. They need at least $100,000 to survive until the business earns a profit. To determine: The form of ownership for the new restaurant.

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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 3, Problem 3.18TE

Summary Introduction

Given scenario:

It is given that Person X and his three friends would like to open a restaurant, in which Person X has 20 years of experience. Person X thought that he can make some good money if he offered good food. However, they did not have enough amount. They need at least $100,000 to survive until the business earns a profit.

To determine: The form of ownership for the new restaurant.

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Students have asked these similar questions

What are the different forms of ownership that a business can adopt, and what are the advantages and disadvantages of each form? Additionally, how can an organization select the most appropriate form of ownership for its specific needs and objectives, and what are some of the key factors that should be considered in making this decision?

If you were to open a small business, such as a local landscaping business, what form of ownership would be most appropriate and why? Provide rational for your choice.

The needs of the businessperson starting a new business are a major consideration when deciding the best form of business ownership. The kind of business being started is also important to consider when deciding to make your new business a sole proprietorship, partnership, or corporation. Look at the list of new businesses below. , indicate the form of ownership you think would be best for each business and give the reasoning for your selection.

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 3, Problem 3.18TE

Summary Introduction

Given scenario:

It is given that Person X and his three friends would like to open a restaurant, in which Person X has 20 years of experience. Person X thought that he can make some good money if he offered good food. However, they did not have enough amount. They need at least $100,000 to survive until the business earns a profit.

To determine: The form of ownership for the new restaurant.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

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 3, Problem 3.18TE

Summary Introduction

Given scenario:

It is given that Person X and his three friends would like to open a restaurant, in which Person X has 20 years of experience. Person X thought that he can make some good money if he offered good food. However, they did not have enough amount. They need at least $100,000 to survive until the business earns a profit.

To determine: The form of ownership for the new restaurant.

Expert Solution & Answer

Want to see the full answer?

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 3, Problem 3.18TE

Summary Introduction