One advantage of operating as a partnership would include: O a. Access to a larger amount of initial capital b. Greater power than a sole trader for decision making O c. Limited liability for all partners O d. Being able to raise capital through share issues Clear my choice
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A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
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Q: Interest on capital
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Q: Which one of the following is a gain to the partnership firm? a.Interest on drawings b.Interest on…
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A: It makes it easier for the firm to raise additional capital
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Q: 7. Which are advantages of a partnership? (Check all that apply) more flexibility with time than a…
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Q: One advantage of operating as a partnership would include: O a. Access to a larger amount of initial…
A: Partnership refers to an agreement where two or more people come together for a common goal. The…
Q: Which one of the following is a gain to the partnership firm? a. Interest on drawings b.
A: Solution: "Interest on drawings" is a gain to the partnership firm.
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A: The final account of the partnership firm includes statements of partners capital to report the…
Q: , one of the partners in the ABC Partnership, decided to buy the share of B in the partnership.…
A: Solution: A, one of the partners in the ABC Partnership, decided to buy the share of B in the…
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A: Partnership is one of the form of business in which two or more partners are involved who made an…
Q: Which one of the following is a gain to the partnership firm? a. Withdrawal of capital b. Interest…
A: Solution: "Interest on drawings" Interest on drawings. This is because drawing are withdrawn by the…
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- TOPIC: LUMPSUM LIDUATION (PARTNERSHIP) SHOW YOUR COMPUTATION, 1. Jack, Jill, Dick and Jane are partners with capitals of P 22,000, P 20,600, P 27,400 and P 18,000 respectively. Jack has a loan balance of P 4,000. Profits and losses are shared 40%; 30%; 20%; 10% by Jack, Jill, Dick and Jane respectively. Assuming assets were sold and liabilities paid and the balance of cash showed P 24,000. Prepare a schedule showing how the P 24,000 will be distributed to the partners. 2. The partnership accounts of Guess, Jag and Levis are shown below as of December 31, 2019. Profits and losses are shared 50%; 30%; and 20%, respectively. Guess, Drawing (debit balance) P (32,000) Levis, Drawing (debit balance) (12,000) Jag, Loan 40,000 Guess, Capital 164,000 Jag, Capital 134,000 Levis, Capital 144,000 Total assets amounted to P 638,000, including cash of P 70,000, and P 200,000 worth of liabilities. On January 2019, the partnership was liquidated, and Jag…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 sentence is not true? Select one: a. In Partnership, the ownership divided into shares of stock. b. Profit or loss has an effect on the owner's equity. c. Companies usually prepare 4 financial statements. d. Assets are resources for providing future services or benefits.
- 4. In the partnership books, there are as many capital and drawing accounts as there are partners. 5. A partner's contribution in the form of noncash asset should be recorded at its fair market value even if there is agreed capital. 6. A partnership is much easier and less expensive to organize than a corporation.What is the liability of partners in a partnership firm? Select one: A.Limited B. No Liability C. Unlimited D. Limited to the capital of business10- Which one of the following is a gain to the partnership firm? a. Withdrawal of capital b. Interest on drawings c. Interest on loan from bank d. Interest on capital
- What of the following is NOT a typical term in the contract between GPs and LPs (LPA: limited partnership agreement)? Group of answer choices a. LPA is designed to align the interests of the GP with the limited partners (LPs) using a profit-sharing agreement of private equity. b. At the exit, the LPs receive the capital that was invested in the company and the profits are split. c. The LPs typically receive 20 percent and the GPs 80 percent of the capital gain.1.Identify which of these statements regarding real estate limited partnerships (RELPs) and real estate investment trusts (REITs) is CORRECT. One-REITs are generally liquid and actively traded on national and regional stock exchanges, as well as over the counter. Two-A REIT shareholder may sell as few or as many shares as he or she deems appropriate, whereas a RELP investor must generally sell the entire interest.1.Discuss the advantages and disadvantages of creating a partnership and say why the company format was chosen instead. 2.Discuss whether or not the creation of a partnership could hamper their ability to borrow to fund their operations. 3.Discuss he advantages and disadvantages of forming a company. 4.Discuss whether they should form a public or private company and whether the company should be unlimited or limited. If you suggest that the company should be unlimited, should the company be limited by shares or by guarantee. Give reasons for the type of company chosen. 5.Discuss how the creation of a company may impact the ability of MM, AA, BB and SS to borrow money to fund their operations. 6.Describe and discuss two (2) corporate governance theories that may assist MM, AA, BB and SS in running their business. 7.Discuss how MM, AA, BB and SS may approach the appointment of Directors to their company and whether or not any or all of them should become Directors given their…
- Ma1. Please give only typed answer. All of the following are true about limited partners except: Review Later Limited partners share profits of the business. Limited partners are only liable for up to the amount of contribution they made to the firm's capital. Limited partners contribute capital in the form of cash or other assets. Limited partners take part in the management of the company.In a partnership ABC, engaged in the flowershop business, the liabilities of the partners are as follows: A – P20, 0000 B – P50, 000 C – P30, 000.i. Can B engage in the same business? Why or why not? ii. How shall any profit and loss be divided among the partners? iii. Suppose D is an industrial partner. What shall be his share?Question 1: For Das to obtain a 1/3 interest in the partnership, how much must his cash investment be? Qeustion 2: How much is the capital of Adee upon partnership formation? PLEASE SHOW THE ANSWERS WITH COMPLETE SOLUTION IN A GOOD ACCOUNTING FORM.