Describe the advantages and the disadvantages of operating a business as a partnership rather than as a corporation.

Question

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Answer 1

Question

Chapter 9, Problem 1Q

To determine

Describe the advantages and the disadvantages of operating a business as a partnership rather than as a corporation.

Expert Solution & Answer

Explanation of Solution

The advantages of operating a business as a partnership rather than as a corporation are:

The ability to make virtually arrangements defining their relationship to each other that the partners desire.
Less hassle of forming a partnership.
Fixed oral agreement is required to form a partnership.
Operating costs are reduced and partners can make decisions which they desire.
Partnership can claim losses as tax and do not pay taxes.

The disadvantages of operating a business as a partnership rather than as a corporation are:

Partners have unlimited liability.
Every partner is liable to pay the debts incurred.

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Answer 2

Question

Chapter 9, Problem 1Q

To determine

Describe the advantages and the disadvantages of operating a business as a partnership rather than as a corporation.

Expert Solution & Answer

Explanation of Solution

The advantages of operating a business as a partnership rather than as a corporation are:

The ability to make virtually arrangements defining their relationship to each other that the partners desire.
Less hassle of forming a partnership.
Fixed oral agreement is required to form a partnership.
Operating costs are reduced and partners can make decisions which they desire.
Partnership can claim losses as tax and do not pay taxes.

The disadvantages of operating a business as a partnership rather than as a corporation are:

Partners have unlimited liability.
Every partner is liable to pay the debts incurred.

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Answer 3

Question

Chapter 9, Problem 1Q

To determine

Describe the advantages and the disadvantages of operating a business as a partnership rather than as a corporation.

Expert Solution & Answer

Explanation of Solution

The advantages of operating a business as a partnership rather than as a corporation are:

The ability to make virtually arrangements defining their relationship to each other that the partners desire.
Less hassle of forming a partnership.
Fixed oral agreement is required to form a partnership.
Operating costs are reduced and partners can make decisions which they desire.
Partnership can claim losses as tax and do not pay taxes.

The disadvantages of operating a business as a partnership rather than as a corporation are:

Partners have unlimited liability.
Every partner is liable to pay the debts incurred.

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Answer 4

Question

Chapter 9, Problem 1Q

To determine

Describe the advantages and the disadvantages of operating a business as a partnership rather than as a corporation.

Expert Solution & Answer

Explanation of Solution

The advantages of operating a business as a partnership rather than as a corporation are:

The ability to make virtually arrangements defining their relationship to each other that the partners desire.
Less hassle of forming a partnership.
Fixed oral agreement is required to form a partnership.
Operating costs are reduced and partners can make decisions which they desire.
Partnership can claim losses as tax and do not pay taxes.

The disadvantages of operating a business as a partnership rather than as a corporation are:

Partners have unlimited liability.
Every partner is liable to pay the debts incurred.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 9, Problem 1Q

To determine

Describe the advantages and the disadvantages of operating a business as a partnership rather than as a corporation.

Expert Solution & Answer

Explanation of Solution

The advantages of operating a business as a partnership rather than as a corporation are:

The ability to make virtually arrangements defining their relationship to each other that the partners desire.
Less hassle of forming a partnership.
Fixed oral agreement is required to form a partnership.
Operating costs are reduced and partners can make decisions which they desire.
Partnership can claim losses as tax and do not pay taxes.

The disadvantages of operating a business as a partnership rather than as a corporation are:

Partners have unlimited liability.
Every partner is liable to pay the debts incurred.

Answer 6

Chapter 9, Problem 1Q

To determine

Describe the advantages and the disadvantages of operating a business as a partnership rather than as a corporation.

Expert Solution & Answer

Explanation of Solution

The advantages of operating a business as a partnership rather than as a corporation are:

The ability to make virtually arrangements defining their relationship to each other that the partners desire.
Less hassle of forming a partnership.
Fixed oral agreement is required to form a partnership.
Operating costs are reduced and partners can make decisions which they desire.
Partnership can claim losses as tax and do not pay taxes.

The disadvantages of operating a business as a partnership rather than as a corporation are:

Partners have unlimited liability.
Every partner is liable to pay the debts incurred.

Answer 7

Chapter 9, Problem 1Q

To determine

Describe the advantages and the disadvantages of operating a business as a partnership rather than as a corporation.

Answer 8

Expert Solution & Answer

Explanation of Solution

The advantages of operating a business as a partnership rather than as a corporation are:

The ability to make virtually arrangements defining their relationship to each other that the partners desire.
Less hassle of forming a partnership.
Fixed oral agreement is required to form a partnership.
Operating costs are reduced and partners can make decisions which they desire.
Partnership can claim losses as tax and do not pay taxes.

The disadvantages of operating a business as a partnership rather than as a corporation are: