FINANCIAL ACCOUNTING: TOOLS FOR BUSINES
FINANCIAL ACCOUNTING: TOOLS FOR BUSINES
9th Edition
ISBN: 9781119595649
Author: Kimmel
Publisher: WILEY
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Chapter 1, Problem 1.1BE
To determine

Introduction:

The business organization consists of three basic forms of business organizations as shown in the below figure:

Forms of Business Organization

FINANCIAL ACCOUNTING: TOOLS FOR BUSINES, Chapter 1, Problem 1.1BE

Figure (1)

To match: The forms of basic business organization and the set of characteristics related to basic forms of business organization.

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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.
For the three major forms of business, LLC, partnership, and corporation, discuss two advantages and two disadvantages of each on taxation, equity owner's legal liability, and relative voice in day-to-day business management.
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
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