• Partners bears the unlimited financial obligation. • Each partner accepts obligation for the mistakes of his or her partners. • Partners must equally share profits. A corporation is considered a legitimate entity that is governed by law. As a artificial person‚ a corporation can perform every one of the errands that a genuine person can do‚ similar to pay expenses‚ collect obligation‚ go into contracts‚ be considered responsible for carelessness and make a
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INVESTIGATE TWO SEPARATE BUSINESSES‚ ONE A PROFIT ORGANISATION AND THE OTHER A NON PROFIT ORGANISATION DESCRIBE THE TYPES OF BUSINESSES‚ PURPOSE AND OWNERSHIP. INCLUDE IN THE DESCRIPTION‚ THE LIABILITY OF THAT BUSINESS. BUSINESS 1: RIVER ISLAND BUSINESS 2: OXFAM RIVER ISLAND: PROFIT ORGANISATION ‘With over 60 years of fashion retailing experience‚ River Island is one of the most successful companies on the High Street. River Island has nearly 300 stores across the UK‚ Ireland and
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owner. General Partnership - • LIABILITY – Partners are personally liable for all of the business debts and obligations. This also includes court judgments. • INCOME TAXES – A partnership is not a separate tax entity from the business owners. The IRS treats this as a pass through entity. This means the business does not pay any income taxes on profits; rather this is passed through to the partners. • LONGEVITY/CONTINUITY – Typically when one partnership wants to leave the company the business is
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Selecting A Form of Business Ownership Outline Introduction A. The Learning Goals of this chapter are to: 1. Describe the advantages and disadvantages of a sole proprietorship. 2. Describe the advantages and disadvantages of a partnership. 3. Desribe the advantages and disadvantages of a corporation. 4. Explain how the potential return and risk of a business are affected by its form of ownership. 5. Describe methods of owning existing businesses. B. One of the most important decisions
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influence over the other party in making financial and/or operating decisions” and Related Party transaction means “a transfer of resources or obligations between related parties‚ regardless of whether or not a price is charged.” Under AS-18‚ following entities are treated as Related Party: • Holding Companies‚ subsidiaries and fellow subsidiaries • Associates and joint ventures • Individuals (incl. their relatives) – having
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tradeoff 8. The goal of profit maximization ignores the timing of profit. ANSWER: True DIFFICULTY: Moderate KEYWORDS: goal of firm‚ profit maximization‚ timing of cash flows 9. The sole proprietorship can be described as the absence of any legal business structure. ANSWER: True DIFFICULTY: Moderate KEYWORDS: sole proprietorship 10. In a general partnership‚ all partners have unlimited liability for the actions of any one partner when that partner is conducting business for the firm
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Learning Activity 1 Question 1: As a sole proprietor‚ there is no difference between Owen and Owen’s Pets Store. As such‚ all income from the business is considered personal income by Owen and will be taxed accordingly (The legal and ethical environment of business‚ 2014‚ pg. 350). Learning Activity 1 Question 2: Dissociation occurs when a party ceases to be associated with the business‚ giving up authority to act and participate in the activities of the business (Clarkson‚ K.‚ Miller‚ R.‚ & Cross
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Important notice: ASX has published this abridged guide to assist listed entities and their officers to understand and comply with their continuous disclosure obligations under the Listing Rules. Nothing in this guide necessarily binds ASX in the application of the Listing Rules in a particular case. In issuing this guide‚ ASX is not providing legal advice. Listed entities and their officers should obtain their own advice from a qualified professional person in respect of their obligations. ASX may
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Business entity concept This concept assumes that‚ for accounting purposes‚ the business enterprise and its owners are two separate independent entities. Thus‚ the business and personal transactions of its owner are separate. For example‚ when the owner invests money in the business‚ it is recorded as liability of the business to the owner. Similarly‚ when the owner takes away from the business cash/goods for his/her personal use‚ it is not treated as business expense. Thus‚ the accounting records
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developed and divided into two which are legal ownership and beneficial ownership: “The legal ownership of the trust-property is in the trustee‚ but he holds it not for his own benefit but for that of the cestui que trustent or the beneficiaries. On the creation of a trust in the strict sense as it was developed by equity‚ the full ownership in the trust property was split into two constituent elements‚ which became vested in different persons: the “legal ownership” in the trustees‚ and what became
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