Why would a partner receive a salary from a partnership?  What is a disadvantage of receiving a large salary as part of a partner’s distribution?

Q: If the income of a partnership is not sufficient enough to satisfy all of the provisions of the…

A: When partnership business income is not sufficient to satisfy all the provision of partnership…

Q: By what methods can a new partner gain admittance into a partnership?

A: A new partner can join a partnership by acquiring part or all of the interest of one or more of the…

Q: What causes the after-tax IRR (ATIRRe) for the general partner to differ from that of the limited…

A: Introduction: ATIRR referred as After-tax Cash Flows from Operations and Reversion. This return for…

Q: Discuss the nature of partnership?

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: What will be the effects of Partnership Allocations and Substantial Economic?

A: Substantial Economic Effect The partnership allocation might not be fulfilled and complete if the…

Q: insolvent partner

A: A deficient and insolvent partner will still have a chance to receive cash from the partnership if…

Q: partnership

A: Partnership is a relationship between the two or more persons who are agreed to share profit of the…

Q: If you decide to join a partnership, which type of admission would you choose and why?

A: Solution Partnership means a business that has two or more owners who agree to share profits and are…

Q: Is the contract of partnership binding even without the stipulation of how to divide profit and…

A: There are many forms of organization which can be formed to run business. Each form of organization…

Q: What is the legal provision of Profit sharing ratio if nothing is given in ‘Partnership Deed”?

A: The partnership comes into existence when two or more persons agree to do the business and share the…

Q: How does a limited partnership differ from a general partnership?

A: Partnership: The form of business entity which is formed by an agreement, owned and managed mutually…

Q: profit in the absence of a partnership agreement?

A: In absence of partnership agreement the thumb rule is that any profit or losses should be divided…

Q: Being in a business of partnership: O a. Increases Individual risk O b. None of these O c. Does not…

A: Partnership : In general sense, partnership is defined as the two or more persons joined together to…

Q: True or False The salary to partners and/or interest on their capital is still distributed in…

A: Partnership means where two or more person comes together to do some common business activity and…

Q: A partner's interest in a partnership is decreased by

A: Partner's basis in partnership interest means the basis of the contributed property by a partner.…

Q: indicate why you would or would not want to be involved in a Limited Partnership investment

A: A limited partnership (LP), as opposed to a limited partnership (LLP), is a partnership formed by…

Q: wo people want to form a partnership and want to transfer business assets into the partnership. They…

A: Partnership:- Partnership is defined as the firm in which more than two persons come together to…

Q: What is meant by ‘Gaining Ratio’ on retirement of a partner ?

A: Gaining ratio is usually calculated at the time of retirement or death of a partner. It is the ratio…

Q: How can the general partner–syndicator structure the partnership to offer incentives to limited…

A: There are various forms of partnership firm & limited liability is one such type. In this form…

Q: Which of the following items may be subject to the self-employment tax? a.Dividend income b.Interest…

A: Introduction Self-employment tax: Self-employment tax is the tax which is imposed on business owners…

Q: This characteristic explains why partners have a right to choose or refuse who they want to be…

A: A partnership is a form of business that agrees to carry a business and share the profits according…

Q: A capitalist partner is not allowed to enter into a new partnership if it is a competing business.…

A: Diligence – The obligation of the partner is to act diligently in her decisions on behalf of the…

Q: Discuss the advantages and disadvantages of forming a partnership as opposed to a sole proprietor.

A: In partnership there are 2 or more persons working as a partners and sharing profit or loss among…

Q: What form of partnership allows some of the investors to limit their liability?

A: A limited liability company is a type of business structure for private companies. Limited liability…

Q: How does the risk associated with investment in a partnership differ for the general partner versus…

A: A partnership is a form of business where two or more persons are agreed to work together for a…

Q: What is hidden goodwill? How is it adjusted on the admission of a partner?

A: Hidden Goodwill means the value of goodwill that is not specified at the time of admission of a…

Q: If no agreement exists in a partnership as to the allocation of income, what method is appropriate?

A: Partnership  It is that form of organization which is owned and managed by two or more persons who…

Q: What provisions in a partnership agreement can be used to establish an equitable allocation of…

A: Partnership: A partnership is an unincorporated form of business which is formed by an agreement,…

Q: What increases a partner's interest in a partnership?

A: A partnership is a legally binding agreement among two or more persons to manage & operate a…

Q: A partnership * O has only one owner. O pays taxes on partnership income.

A: Introduction: Partnership: Its an agreement between two or more partners for forming a business and…

Q: If a bonus is traceable to the old partners rather than to a new partner, it is allocated among the…

A: If a Bonus is traceable to the old partners rather than to a new partner, than such an bonus will be…

Q: How can a partner retire from the firm?

A: Partnership: It is an agreement where two or more persons agree to the conditions specified in the…

Q: Why is it regarded advantageous to have a written partnership agreement

A: "partnership" refers to when two or more persons decide to operate together as partners in any…

Q: What are the advantages and disadvantages of partnership type of business over sole Proprietorship?

A: partnership: it is business owned by two or more persons. sole proprietorship: business oned by…

Q: In a partnership, a capital deficiency occurs for a partner when   Options: • His share in the…

A: Solution: Capital deficiency means debit balance of one or more partner at the time of final cash…

Q: Explain the difference between a general partner and a limited partner?

A: Most of the partnerships formed either by General partnership or by limited Partnership. Both…

Q: Why might a partnership pay a bonus to a newly admitted partner?

A: Partnership: A partnership is a firm structure whereby multiple people own the firm together. These…

Q: Partners are taxed on their withdrawals, not on their share of partnership income. True or False

A: A partnership is a form of business in which two or more two individuals agree to operate a…

Q: What are some of the advantages and disadvantages of forming a partnership?

A: Partnership is defined as an arrangement, which is between the two or more people for overseeing the…