The features of 4 types of ownership in a business.

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Answer 1

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 6, Problem 1LO

Summary Introduction

To discuss: The features of 4 types of ownership in a business.

Expert Solution & Answer

Explanation of Solution

The four types of ownership in a business are sole proprietorship, partnership, corporation, and general partnership. The features are as follows:

Sole proprietorship will have a characteristic of single owner, who always manages the business.
Partnership is an intentional agreement in which more than 2 people acts as the owners of the business to gain profit.
The general partnership includes all the partners, who participate actively in managing the business and has unlimited liability in the firm.
Under corporation, the business is a legal entity, which is distinct and separate from its owners.

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Answer 2

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 6, Problem 1LO

Summary Introduction

To discuss: The features of 4 types of ownership in a business.

Expert Solution & Answer

Explanation of Solution

The four types of ownership in a business are sole proprietorship, partnership, corporation, and general partnership. The features are as follows:

Sole proprietorship will have a characteristic of single owner, who always manages the business.
Partnership is an intentional agreement in which more than 2 people acts as the owners of the business to gain profit.
The general partnership includes all the partners, who participate actively in managing the business and has unlimited liability in the firm.
Under corporation, the business is a legal entity, which is distinct and separate from its owners.

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Answer 3

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 6, Problem 1LO

Summary Introduction

To discuss: The features of 4 types of ownership in a business.

Expert Solution & Answer

Explanation of Solution

The four types of ownership in a business are sole proprietorship, partnership, corporation, and general partnership. The features are as follows:

Sole proprietorship will have a characteristic of single owner, who always manages the business.
Partnership is an intentional agreement in which more than 2 people acts as the owners of the business to gain profit.
The general partnership includes all the partners, who participate actively in managing the business and has unlimited liability in the firm.
Under corporation, the business is a legal entity, which is distinct and separate from its owners.

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Answer 4

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 6, Problem 1LO

Summary Introduction

To discuss: The features of 4 types of ownership in a business.

Expert Solution & Answer

Explanation of Solution

The four types of ownership in a business are sole proprietorship, partnership, corporation, and general partnership. The features are as follows:

Sole proprietorship will have a characteristic of single owner, who always manages the business.
Partnership is an intentional agreement in which more than 2 people acts as the owners of the business to gain profit.
The general partnership includes all the partners, who participate actively in managing the business and has unlimited liability in the firm.
Under corporation, the business is a legal entity, which is distinct and separate from its owners.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 6, Problem 1LO

Summary Introduction

To discuss: The features of 4 types of ownership in a business.

Expert Solution & Answer

Explanation of Solution

The four types of ownership in a business are sole proprietorship, partnership, corporation, and general partnership. The features are as follows:

Sole proprietorship will have a characteristic of single owner, who always manages the business.
Partnership is an intentional agreement in which more than 2 people acts as the owners of the business to gain profit.
The general partnership includes all the partners, who participate actively in managing the business and has unlimited liability in the firm.
Under corporation, the business is a legal entity, which is distinct and separate from its owners.

Answer 6

Chapter 6, Problem 1LO

Summary Introduction

To discuss: The features of 4 types of ownership in a business.

Expert Solution & Answer

Explanation of Solution

The four types of ownership in a business are sole proprietorship, partnership, corporation, and general partnership. The features are as follows:

Sole proprietorship will have a characteristic of single owner, who always manages the business.
Partnership is an intentional agreement in which more than 2 people acts as the owners of the business to gain profit.
The general partnership includes all the partners, who participate actively in managing the business and has unlimited liability in the firm.
Under corporation, the business is a legal entity, which is distinct and separate from its owners.

Answer 7

Chapter 6, Problem 1LO

Summary Introduction

To discuss: The features of 4 types of ownership in a business.

Answer 8

Expert Solution & Answer

Explanation of Solution

The four types of ownership in a business are sole proprietorship, partnership, corporation, and general partnership. The features are as follows:

Sole proprietorship will have a characteristic of single owner, who always manages the business.
Partnership is an intentional agreement in which more than 2 people acts as the owners of the business to gain profit.
The general partnership includes all the partners, who participate actively in managing the business and has unlimited liability in the firm.
Under corporation, the business is a legal entity, which is distinct and separate from its owners.