Advanced Accounting
12th Edition
ISBN: 9781305084858
Author: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 13, Problem 1UTI
To determine
Concept Introduction:
People start their own business and select the form of organisation depend upon their need and kind of their business. Over the other form of organisation,
To Explain:
The major characteristics of a partnership firm that might influence the people decision.
Expert Solution & Answer
Answer to Problem 1UTI
People choose the partnership form of organization as it has distinct advantages.
Explanation of Solution
The characteristics of partnership form of organization are as follows:
- The process for formation of partnership firm is simple and convenient.
- Partnership is an association between the persons who has a good faith with each other and has a good knowledge of conducting business and have a common objective of achieving a financial goal.
- All the partners of the partnership firm are the joint owner of the business property.
- One partner act will bind the other partners and partnership firm also, even in any wrongful act.
- The partners are jointly and severally liable for the partnership firm if partnership deed is made of general liability. And if partnership deed is made of limited liability than each partners liability is limited to the extend of his investment only.
- Currently, Limited Liability Partnership (LLP) form of partnership has developed, in this partners liability is limited yet they can participate in the management. In LLP, any obligation created by one partner cannot be recovered from the other partners.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
A major issue faced by people who are starting their own business is the form of organization they should select. What are some major characteristics of a partnership that might influence their decision?
What choices are available to a group of persons creating a business? Why is it possible that a partnership is not the optimal company structure? What additional possibilities do they have?
A significant difficulty that entrepreneurs encounter is determining the kind of organization to create. What are some significant aspects of a partnership that might sway their decision?
Knowledge Booster
Similar questions
What options does a group of people have when forming a business? Why might a partnership not be the best form of business organization? What other options might they have?
arrow_forward
The owner of an accounting practice is considering establishing a partnership with two other persons to carry on the business. What are the major disadvantages of a partnership form that she should consider in making her decision?
arrow_forward
What are some of the legal risks associated with organizing a business as a partnership? In your opinion, would you want to enter into a partnership? Under what circumstances? Explain.
arrow_forward
Which business vehicle(Company or partnership) you will adopt if you are to set up a business and give reasons to support your choice.
arrow_forward
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
arrow_forward
Write the introduction and prepare the partnership deed of the company by your creativity?
arrow_forward
A friend who recently graduated from university is planning to form a partnership. He is planning to carry out his new business with utmost integrity. What reminders can you give your friend to ensure that he can select partners with the same business perspective?
arrow_forward
Describe the Advantages and Disadvantages of Organizing as a Partnership from an accounting view
arrow_forward
which type of organization should be formed. Jackie and Susie are starting an accounting firm. They are deciding between a general partnership and a limited liability partnership. It is crucial to Jackie that she has limited liability and is not personally liable if Susie is negligent.
arrow_forward
4. Suppose A, B, and C are accounting professionals who decided to start a partnership. What type of partnership will they establish? Explain.
arrow_forward
Define the difference between a proprietorship and a partnership. What are the advantages and disadvantages of a proprietorship and a partnership? (PLEASE DONT PROVIDE PICTURES FOR ANSWER THANK YOU)
arrow_forward
A.What is partnership accounts and what are the necessary components ofpartnership accounts that a company should consider when preparingpartnership accounts and why?B. How can you differentiate the company’s accounts from partnership accounts and on what grounds?
arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,