working capital management. B. debt management. C. equity management. D. capital budgeting. E. capital structure. 6. A business owned by a single individual is called a: A. corporation. B. sole proprietorship. C. general partnership. D. limited partnership. E. limited liability company. 7. A business formed by two or more individuals who each have unlimited liability for business debts is called a: A. corporation. B. sole proprietorship. C. general partnership. D. limited partnership. E. limited
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Question 1: What are the ideas behind the establishment of Malaysian Institute of Accountants (MIA)? (5marks) Answer: MIA is a statutory body established under the Accountants Act‚ 1967 to regulate and develop the accountancy professions in Malaysia. MIA’s responsibilities include education and quality assurance as well as enforcement which are carried out to ensure that the credibility to the profession
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to a general tax rule or an exception to the rule. For the various types of partnerships‚ added information regarding the extent to which the owners can participate in management of the entity. In discussion of types of partnerships‚ noted that most of the partnerships referenced in the examples are operating partnerships that would most likely be formed as LLCs in most states. In text examples‚ changed the type of entity from a “Partnership” to an “LLC” where an LLC would typically be used
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consequences of partnerships. The legal definition of a partnership is pretty simple. It is an association of two or more persons who have not incorporated; and carry on a business for profit as co-owners. A partnership exists if these conditions are met‚ even though the people involved may not know it or even intend that the business be a partnership--and even if they don’t actually make a profit. Partnerships can be flexible; the partners have the ability to make virtually any arrangements defining
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that may possibly occur in business operations with inherent uncertainty or risks. Overstatement in financial position or operating results led to business failures eventually and caused substantial losses to investors‚ creditors and other users. Responding to criticisms from the beneficiaries of financial statements‚ a conservative attitude emerged in practice and led to the conservatism accounting convention that has been widely accepted by accounting profession and business community since the 1930s
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liability companies increased rapidly throughout the past 10 years. These structures permit businesses to decrease federal tax liabilities by federal pass-through provisions (Bean & Bilyeu‚ 1997). Limited liability can apply to any non-corporate business‚ in any state‚ and provides characteristics of a corporation and a partnership. Individual states regulate the operations of the LLCs. However‚ companies with limited liability are different and distinct from a sole proprietorship‚ partnership
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Types of Business Business is any activity that seeks to provide goods and services to others while operating at a profit. Business is the solution of how to get money‚ although business can be very risky. Anyone in the world can open a business‚ but there are some steps before deciding how would they structure their business. They will need to know their options. There are many ways to organize a business; the five most common ways are sole proprietorship‚ partnership‚ limited partnership‚ Limited
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fresh graduate knew new trends‚ ideas and tactics beneficial to the company. He has lots of ideas and plans for the future which makes the company adaptive and globally competitive to the business world. -The company has no substantial liabilities. Thus the company has enough financial capability to run business. Having no liabilities means that all sales they have generate goes directly to their net income. -Equipments being a high quality and first hand use‚ will last long. With its equipments
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The Difference Between Jointly Liable & Joint & Several Liability by Ellis Roanhorse‚ Demand Media Joint and several liability is allowed in many states. This type of liability may apply to business partners who form a general partnership‚ or to two or more individuals when someone is injured due to negligence. Joint and several liability is different than when two or more individuals are jointly liable for an obligation. Joint and several liability gives an injured party a better chance of recovering
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disadvantages of changing the company organization from a sole proprietorship to a LLC? The McGee Cake Company‚ currently operating as a sole proprietorship‚ may benefit from forming a limited liability company (LLC). An LLC is a comparatively new type of business entity. With an LLC there are reduced legal formalities in comparison to setting up a corporation. In addition‚ unlike a corporation‚ the McGees could set up an LLC yet remain the sole owners of the company. Another advantage as the owners of an
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