Describe the three major forms of business organizations.

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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 8, Problem 1Q

To determine

Describe the three major forms of business organizations.

Expert Solution & Answer

Explanation of Solution

Forms of business organizations:

Survey Of Accounting, Chapter 8, Problem 1Q

Sole proprietorship: It is one form of simple business that is owned and maintained by a single person. Obtaining business licence from the local government is required to setup the sole proprietorship. Government provides tax advantages for these firms.

Partnership: Partnership firms are started by two or more individuals joining together. This form of partnership is very easy to form and there is a shared control. The duties and formalities of the concern are formalized by making a partnership agreement. In this type of business organization, individuals with similar interest join together and start-up a business. As previously stated for sole proprietorship, partnership firms too enjoy tax advantages.

Corporation: Corporation is a form of business organization which is created and organized as per the laws of the state. There is a separate legal entity in this form of business organization that means, it is owned by shareholders and managed by a board of directors. The transfer of ownership and raising funds are easy in this form of organization. No personal legal liability exists among the shareholders.

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The stockholders' equity accounts of Grouper Corp. on January 1, 2025, were as follows. Preferred Stock (7%, $100 par noncumulative, 8,500 shares authorized) $510,000 Common Stock ($4 stated value, 510,000 shares authorized) 1,700,000 Paid-in Capital in Excess of Par-Preferred Stock 25,500 Paid-in Capital in Excess of Stated Value-Common Stock 816,000 Retained Earnings 1,169,600 Treasury Stock (8,500 common shares) 68,000 During 2025, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Issued 8,500 shares of common stock for $51,000. Mar. 20 Purchased 1,700 additional shares of common treasury stock at $7 per share. Oct. 1 Nov. 1 Dec. 1 Declared a 7% cash dividend on preferred stock, payable November 1. Paid the dividend declared on October 1. Declared a $0.50 per share cash dividend to common stockholders of record on December 15, payable December 31, 2 Dec. 31 Determined that net income for the year was $477,000. Paid the dividend…

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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 8, Problem 1Q

To determine

Describe the three major forms of business organizations.

Expert Solution & Answer

Explanation of Solution

Forms of business organizations:

Survey Of Accounting, Chapter 8, Problem 1Q

Sole proprietorship: It is one form of simple business that is owned and maintained by a single person. Obtaining business licence from the local government is required to setup the sole proprietorship. Government provides tax advantages for these firms.

Partnership: Partnership firms are started by two or more individuals joining together. This form of partnership is very easy to form and there is a shared control. The duties and formalities of the concern are formalized by making a partnership agreement. In this type of business organization, individuals with similar interest join together and start-up a business. As previously stated for sole proprietorship, partnership firms too enjoy tax advantages.

Corporation: Corporation is a form of business organization which is created and organized as per the laws of the state. There is a separate legal entity in this form of business organization that means, it is owned by shareholders and managed by a board of directors. The transfer of ownership and raising funds are easy in this form of organization. No personal legal liability exists among the shareholders.

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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 8, Problem 1Q

To determine

Describe the three major forms of business organizations.

Expert Solution & Answer

Explanation of Solution

Forms of business organizations:

Survey Of Accounting, Chapter 8, Problem 1Q

Sole proprietorship: It is one form of simple business that is owned and maintained by a single person. Obtaining business licence from the local government is required to setup the sole proprietorship. Government provides tax advantages for these firms.

Partnership: Partnership firms are started by two or more individuals joining together. This form of partnership is very easy to form and there is a shared control. The duties and formalities of the concern are formalized by making a partnership agreement. In this type of business organization, individuals with similar interest join together and start-up a business. As previously stated for sole proprietorship, partnership firms too enjoy tax advantages.

Corporation: Corporation is a form of business organization which is created and organized as per the laws of the state. There is a separate legal entity in this form of business organization that means, it is owned by shareholders and managed by a board of directors. The transfer of ownership and raising funds are easy in this form of organization. No personal legal liability exists among the shareholders.

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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 8, Problem 1Q

To determine

Describe the three major forms of business organizations.

Expert Solution & Answer

Explanation of Solution

Forms of business organizations:

Survey Of Accounting, Chapter 8, Problem 1Q

Sole proprietorship: It is one form of simple business that is owned and maintained by a single person. Obtaining business licence from the local government is required to setup the sole proprietorship. Government provides tax advantages for these firms.

Partnership: Partnership firms are started by two or more individuals joining together. This form of partnership is very easy to form and there is a shared control. The duties and formalities of the concern are formalized by making a partnership agreement. In this type of business organization, individuals with similar interest join together and start-up a business. As previously stated for sole proprietorship, partnership firms too enjoy tax advantages.

Corporation: Corporation is a form of business organization which is created and organized as per the laws of the state. There is a separate legal entity in this form of business organization that means, it is owned by shareholders and managed by a board of directors. The transfer of ownership and raising funds are easy in this form of organization. No personal legal liability exists among the shareholders.

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Answer 5

Chapter 8, Problem 1Q

To determine

Describe the three major forms of business organizations.

Expert Solution & Answer

Explanation of Solution

Forms of business organizations:

Survey Of Accounting, Chapter 8, Problem 1Q

Sole proprietorship: It is one form of simple business that is owned and maintained by a single person. Obtaining business licence from the local government is required to setup the sole proprietorship. Government provides tax advantages for these firms.

Partnership: Partnership firms are started by two or more individuals joining together. This form of partnership is very easy to form and there is a shared control. The duties and formalities of the concern are formalized by making a partnership agreement. In this type of business organization, individuals with similar interest join together and start-up a business. As previously stated for sole proprietorship, partnership firms too enjoy tax advantages.

Corporation: Corporation is a form of business organization which is created and organized as per the laws of the state. There is a separate legal entity in this form of business organization that means, it is owned by shareholders and managed by a board of directors. The transfer of ownership and raising funds are easy in this form of organization. No personal legal liability exists among the shareholders.

Answer 6

Chapter 8, Problem 1Q

To determine

Describe the three major forms of business organizations.

Expert Solution & Answer

Explanation of Solution

Forms of business organizations:

Survey Of Accounting, Chapter 8, Problem 1Q

Sole proprietorship: It is one form of simple business that is owned and maintained by a single person. Obtaining business licence from the local government is required to setup the sole proprietorship. Government provides tax advantages for these firms.

Partnership: Partnership firms are started by two or more individuals joining together. This form of partnership is very easy to form and there is a shared control. The duties and formalities of the concern are formalized by making a partnership agreement. In this type of business organization, individuals with similar interest join together and start-up a business. As previously stated for sole proprietorship, partnership firms too enjoy tax advantages.

Corporation: Corporation is a form of business organization which is created and organized as per the laws of the state. There is a separate legal entity in this form of business organization that means, it is owned by shareholders and managed by a board of directors. The transfer of ownership and raising funds are easy in this form of organization. No personal legal liability exists among the shareholders.

Answer 7

Chapter 8, Problem 1Q

To determine

Describe the three major forms of business organizations.

Answer 8

Expert Solution & Answer

Explanation of Solution

Forms of business organizations:

Survey Of Accounting, Chapter 8, Problem 1Q

Sole proprietorship: It is one form of simple business that is owned and maintained by a single person. Obtaining business licence from the local government is required to setup the sole proprietorship. Government provides tax advantages for these firms.

Partnership: Partnership firms are started by two or more individuals joining together. This form of partnership is very easy to form and there is a shared control. The duties and formalities of the concern are formalized by making a partnership agreement. In this type of business organization, individuals with similar interest join together and start-up a business. As previously stated for sole proprietorship, partnership firms too enjoy tax advantages.

Corporation: Corporation is a form of business organization which is created and organized as per the laws of the state. There is a separate legal entity in this form of business organization that means, it is owned by shareholders and managed by a board of directors. The transfer of ownership and raising funds are easy in this form of organization. No personal legal liability exists among the shareholders.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 8 - Prob. 1Q Ch. 8 - Prob. 2Q Ch. 8 - Prob. 3Q Ch. 8 - Prob. 4Q Ch. 8 - 5. What is the purpose of the articles of...Ch. 8 - 6. What is the function of the stock certificate?Ch. 8 - Prob. 7Q Ch. 8 - Prob. 8Q Ch. 8 - 9. What is a limited liability company? Discuss...Ch. 8 - Prob. 10Q

Describe the three major forms of business organizations.

Describe the three major forms of business organizations.

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