C. Identify the Form of Business Organization being described. (FOMI ONpusiness organization with unlimited lives and the gean ol withdrawal of anownerOcessability.4. It involves a contractual agreement between all the partners that set the terms andconditions of their business relationship, including the distribution of ownership, responsibilities,and profits and losses.5. This form of business organization generally enjoys fewer options to raise capital.

Business Organisation is something in which some commercial activity like sales or goods and…

Answered: C. Identify the Form of Business…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter18: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 12P

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LO.1 Sylvia and Trang want to enter into business together and are unsure what type of entity to form (if any). They are concerned about the complexity of the paperwork required, the protection of personal assets from business creditors, and flexibility of sharing income and losses. Explain to Sylvia and Trang how a corporation, a partnership, or no entity at all may differ with respect to their areas of concern.
1.The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless evidence shows that it will not continue, is the:Going-concern assumption.Business entity assumption.Objectivity principle.Cost Principle.Monetary unit assumption. 2.A partnership:Is also called a sole proprietorship.Has unlimited liability for its partners.Has to have a written agreement in order to be legal.Is a legal organization separate from its owners.Has owners called shareholders. 3.The difference between a company’s assets and its liabilities, or net assets is:Net income.Expense.Equity.Revenue.Net loss. 4.Which of the following accounting principles prescribes that a company record its expenses incurred to generate the revenue reported?Going-concern assumption.Matching principle.Cost principle.Business entity assumption.Consideration assumption. 5.The primary objective of financial accounting is:To serve the decision-making…
B. Analysis of Information. Presented below are possible advantages and disadvantages. You are to determine in the first column whether the item pertains to an advantage or disadvantage. On the second column, you are to determine the related business organization. Item 1 has been done for you.Information Advantage or DisadvantageBusiness Organization1. In the event of bankruptcy, business creditors can run after the personal assets of the owners.Disadvantage Sole Proprietorship Partnership2. Involvement of more persons in the business, hence more sources of expertise as compared to the most simple business organization.3. Transferability of ownership4. Limited life5. Business organization as a juridical or separate person6. Corporate existence of 50 years, renewable7. Most limited source of funding8. Most regulated business organization9. Double taxation10. Limited liability11. Unlimited liability
Which type of business will most likely have problems with insufficient funds for business? A)Partnerships B)LLCs C)Corporations D)Sole proprietorship
What term is used to describe the characteristic of a business entity where an individual(s) associated with an entity can not only lose all of his/her investment in the firm but personal assets can be taken to pay the debts of the firm if necessary? Group of answer choices unlimited liability limited liability dissolution mutual agency
Which form of business organization is characterized by having the shortest start-up time and lowest legal costs? Select one: a. partnership b. S-corporation c. proprietorship d. corporation
Listed below are several statements regarding different forms of business organization. For each statement, indicate if that statement is true or false for each proprietorship and partnership.(a)Owners have limited liability.(b)Records of the business are combined with the personal records of the owner or owners.(c)Required to follow IFRS.(d)Pays income taxes on its profits.(e)Owners are called "shareholders."(f)Will have more than one owner.(g)Has a limited life.(h)Has a separate legal existence from its owners.
Bank Muscat LLC is an example of which of the following forms of business organization? a. Corporation b. Sole Proprietor c. Partnership d. All the options are wrong
1. For the risk-return principle implies that the riskier a given course of action, the higherthe expected return must be. (T) (F)2. General partners have unrestricted transferability of ownership, while limited partnersmust have the consent of all partners to transfer their ownership. (T) (F)3. Owners must register and pay yearly fees to their State of residence when establishinga sole proprietorship. (T) (F)4. The purpose of financial markets is to bring borrowers and savers together. (T) (F)5. In Financial markets, borrowers and lenders most both be located in the same country. (T) (F)6. Beginning cash balance + cash flow from operations + cash flow from investingactivities + cash flow from financing activities = ending cash balance. (T) (F)7. On a common size balance sheet, total assets are equal to 100%. (T) (F)8. The income statement shows a company's earnings since it has been in business. (T) (F)9. The balance includes information about the company's assets and liabilities. (T)…
Which of the following is NOT the weaknesses of sole proprietorship? Manakah di antara berikut BUKAN kelemahan perniagaan milikan tunggal? Select one: A. Limited skills and capability /Keupayaan dan kemahiran terhad B. Do not have proper financial record /Tidak memiliki rekod kewangan yang baik C. Unlimited liability /Liabiliti tidak terhad D. Business information can be kept confidential /Maklumat perniagaan tidak perlu didedahkan
Which of the following is true? a. Owner in sole proprietorship has less responsibility in running his business compared to partnership b. The liability for sole proprietorship is limited compared to partnership c. The sole proprietorship business has unlimited growth potential compared to partnership d. The owner of sole proprietorship has less available capital compared to partnership
Based on the advantages and disadvantages of each of the following forms of businesses, give an example of a business that would be best suited to that particular form. Be sure to explain why that is the best option for the particular business. (1) Sole proprietorship (2) Limited partnership (3) Corporation (4) Limited Liability Company

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