Proprietorship: When single person start a business it is sole proprietorship kind of business. This is one of the common form of business organization. In this type of business organization all the decision related to sale, purchase, expenses, distribution of goods and many more business activity are conducted by the owner of sole proprietorship firm.
Corporation: A corporation is a company or group of company to perform business activity The corporation may be profit making or nonprofit making but most of the attributes are same. A corporation has to be registered under the law of the country.
To identify: The given attributes are related to which form of business.
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FINANCIAL ACCOUNTING FUNDAMENTALS
- Q3) Which of the following legal forms of business is owned and usually operated by a person who is responsible for its debts? Select one: a. Corporation b. Cartel c. Sole proprietorship d. General partnership e. Limited partnership This multiple choice question from BUSINESS MATHEMATICS course.just write for me the final answer.arrow_forwardRefer to Chapter 11-1A, page 619: Characteristics of sole proprietorships, partnerships, and corporations Required The three primary types of business organization are proprietorship, partnership, and corporation. Each type has characteristics that distinguish it from the other types. In the left column of the following table write the name of the type of business organization that is most likely to possess the characteristic that is described in the right column of the table. The first item is shown as an example. Business Type Characteristic Proprietorship Owned and operated by a single individual Subject to double taxation Has a retained earnings account on its balance sheet One owner may be held personally liable for actions taken on behalf of the business by different owner Profits benefit a single individual Frequently uses legal agreements to define profit distribution for two or more owners Most highly regulated form of business The business dissolves with the death of its only…arrow_forwardQ1. When the management of a business is conducted by individuals other than the owners, the business is more likely to be a: partnership. sole proprietorship. general partner. corporation.arrow_forward
- Is a mutiple question: Question : Accounting for the day-to-day activities for a Partnership or Limited Liability Corporation (LLC) is generally: Group of answer choices 1. the same as the accounting for a sole proprietorship only 2. the same as the accounting for any other form of business 3. is not the same as the accounting for any other form of business 4. the same as the accounting for a corporation onlyarrow_forwardWhat is a business owned by one individual called and the easiest legal form of business to organize that we are studying in this course? Group of answer choices limited liability company partnership sole proprietorship corporationarrow_forwardWhich type of business organization is owned by only one owner? a. Corporation b. Partnership c. Sole proprietorship d. Items a, b, and c are all correcarrow_forward
- Question 1: Define and discuss each of the following by providing at least 2 practical examples: a) Limited Partnership; Limited Liability partnership; Professional corporation? b) A friend asked you to reveal important financial information of the company,being a finance manager of the company what would you do? Justify by considering ethics in finance. c) Describemechanisms that motivate managers to act in stockholders’ best interests, and to overcome agency problem?arrow_forward1. What is a Statement of Changes in Equity? 2. What are the elements of an SCE? 3. Differentiate the SCE of a sole proprietorship, a partnership and a corporation.arrow_forwardB. 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 liabilityarrow_forward
- MCQS: External reporting is the result of? (a) Financial accounting (b) Management accounting (c) Cost accounting (d) Social accounting Which of the following business entity is collectively known as firm? (a) Sole trader-ship (b) Partnership (c) Co-operative society (d) Companyarrow_forwardWhich 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. corporationarrow_forwardBased 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 Companyarrow_forward