Three major types of firms that exist in the United States.

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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 6, Problem 6.1.1RQ

To determine

Three major types of firms that exist in the United States.

Expert Solution & Answer

Explanation of Solution

Following are the three major types of the firms that exist in the United States.

Sole proprietorship: This type of firm is basically owned by the single individuals. In general, they are small firms, and in some cases, some firms employ many workers in order to earn high profits. These firms have unlimited liability.

Partnership: This type of firm is owned by two or more individuals. In some cases, these firms are very large. These firms have unlimited liability.

Corporation: This type of firm is a legal form of business. It provides protections to the owners from losing more than the investment, if the business fails. These firms are generally large and organized. These firms have limited liability.

Economics Concept Introduction

Concept introduction:

Firms: Firms are the business organizations that sell goods and services in order to earn profits.

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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 6, Problem 6.1.1RQ

To determine

Three major types of firms that exist in the United States.

Expert Solution & Answer

Explanation of Solution

Following are the three major types of the firms that exist in the United States.

Sole proprietorship: This type of firm is basically owned by the single individuals. In general, they are small firms, and in some cases, some firms employ many workers in order to earn high profits. These firms have unlimited liability.

Partnership: This type of firm is owned by two or more individuals. In some cases, these firms are very large. These firms have unlimited liability.

Corporation: This type of firm is a legal form of business. It provides protections to the owners from losing more than the investment, if the business fails. These firms are generally large and organized. These firms have limited liability.

Economics Concept Introduction

Concept introduction:

Firms: Firms are the business organizations that sell goods and services in order to earn profits.

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 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 6, Problem 6.1.1RQ

To determine

Three major types of firms that exist in the United States.

Expert Solution & Answer

Explanation of Solution

Following are the three major types of the firms that exist in the United States.

Sole proprietorship: This type of firm is basically owned by the single individuals. In general, they are small firms, and in some cases, some firms employ many workers in order to earn high profits. These firms have unlimited liability.

Partnership: This type of firm is owned by two or more individuals. In some cases, these firms are very large. These firms have unlimited liability.

Corporation: This type of firm is a legal form of business. It provides protections to the owners from losing more than the investment, if the business fails. These firms are generally large and organized. These firms have limited liability.

Economics Concept Introduction

Concept introduction:

Firms: Firms are the business organizations that sell goods and services in order to earn profits.

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 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 6, Problem 6.1.1RQ

To determine

Three major types of firms that exist in the United States.

Expert Solution & Answer

Explanation of Solution

Following are the three major types of the firms that exist in the United States.

Sole proprietorship: This type of firm is basically owned by the single individuals. In general, they are small firms, and in some cases, some firms employ many workers in order to earn high profits. These firms have unlimited liability.

Partnership: This type of firm is owned by two or more individuals. In some cases, these firms are very large. These firms have unlimited liability.

Corporation: This type of firm is a legal form of business. It provides protections to the owners from losing more than the investment, if the business fails. These firms are generally large and organized. These firms have limited liability.

Economics Concept Introduction

Concept introduction:

Firms: Firms are the business organizations that sell goods and services in order to earn profits.

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 6, Problem 6.1.1RQ

To determine

Three major types of firms that exist in the United States.

Expert Solution & Answer

Explanation of Solution

Following are the three major types of the firms that exist in the United States.

Sole proprietorship: This type of firm is basically owned by the single individuals. In general, they are small firms, and in some cases, some firms employ many workers in order to earn high profits. These firms have unlimited liability.

Partnership: This type of firm is owned by two or more individuals. In some cases, these firms are very large. These firms have unlimited liability.

Corporation: This type of firm is a legal form of business. It provides protections to the owners from losing more than the investment, if the business fails. These firms are generally large and organized. These firms have limited liability.

Economics Concept Introduction

Concept introduction:

Firms: Firms are the business organizations that sell goods and services in order to earn profits.

Answer 6

Chapter 6, Problem 6.1.1RQ

To determine

Three major types of firms that exist in the United States.

Expert Solution & Answer

Explanation of Solution

Following are the three major types of the firms that exist in the United States.

Sole proprietorship: This type of firm is basically owned by the single individuals. In general, they are small firms, and in some cases, some firms employ many workers in order to earn high profits. These firms have unlimited liability.

Partnership: This type of firm is owned by two or more individuals. In some cases, these firms are very large. These firms have unlimited liability.

Corporation: This type of firm is a legal form of business. It provides protections to the owners from losing more than the investment, if the business fails. These firms are generally large and organized. These firms have limited liability.

Economics Concept Introduction

Concept introduction:

Firms: Firms are the business organizations that sell goods and services in order to earn profits.

Answer 7

Chapter 6, Problem 6.1.1RQ

To determine

Three major types of firms that exist in the United States.

Answer 8

Expert Solution & Answer

Explanation of Solution

Following are the three major types of the firms that exist in the United States.

Sole proprietorship: This type of firm is basically owned by the single individuals. In general, they are small firms, and in some cases, some firms employ many workers in order to earn high profits. These firms have unlimited liability.

Partnership: This type of firm is owned by two or more individuals. In some cases, these firms are very large. These firms have unlimited liability.

Corporation: This type of firm is a legal form of business. It provides protections to the owners from losing more than the investment, if the business fails. These firms are generally large and organized. These firms have limited liability.