To discuss: The four main disadvantages of the partnership and sole proprietorship forms of business organization.
Introduction:
The Business organization is a process of organizing, planning, monitoring, and controlling of resources in an entity to attain its objectives. There are three various types of business organization. They are as follows:
- Sole proprietorship
- Partnership
- Corporation
To think critically about: The advantages of the partnership and sole proprietorship forms of business organization in contrast to the corporation.
Introduction:
The Business organization is a process of organizing, planning, monitoring, and controlling of resources in an entity to attain its objectives. There are three various types of business organization. They are as follows:
- Sole proprietorship
- Partnership
- Corporation
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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.arrow_forwardNo plagiarism please Q1. Limited liability is a weakness of sole proprietorship and partnership. Why? Explain.arrow_forwardA6) Finance The OIC Fiqh Academy has ruled that preference shares are not permissible. Below are among the reasons why preference shares are not permissible, except: A. Priority in liquidation, violates principle that losses should be borne by partners in proportion to their capital contribution B. Fixed rate of dividend C. Higher payout is acceptable D. The issues regarding a hierarchy of capital suppliers is not in the spirit of Islamic partnershiparrow_forward
- 3. Which one of the following situation a partnership firm will have goodwill? a.The firm is availing a loan from a bank b.The firm is earning a normal profit c.The firm is incurring a loss d.The firm is earning a super profitarrow_forwardQuestion # 1: Which of the following statements is CORRECT? a. One of the disadvantages of incorporating a business is that the owners then become subject to liabilities in the event the firm goes bankrupt. b. Sole proprietorships are subject to more regulations than corporations. c. In any type of partnership, every partner has the same rights, privileges, and liability exposure as every other partner. d. Sole proprietorships and partnerships generally have a tax advantage over many corporations. e. Corporations of all types are subject to the corporate income tax.arrow_forward
- Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT