2. Forms of business organizations Aa Aa Businesses can be classified into the f

Question

2. Forms of business organizations Aa Aa Businesses can be classified into the following forms: a proprietorship, a partnership, a company (LLC), and a limited liability partnership (LLP). a limited liability Different forms of businesses have different characteristics. Which of the following characteristics would apply to a corporation? Check all that apply owned by single individual Easier to transfer ownership in the form of stock Exempt from double taxation chartered by a state and is its own entity separate from its owners Owners have limited liability Has unlimited life You come across different kinds of businesses every day. The following table describes some businesses. Using the description of each business, classify it as a proprietorship, a partnership, a corporation, or a limited liability company/limited liability partnership. Business Scenario Type of Business Aakash, the CEO of a beverage company, is required to file the company's quarterly and annual employment, financial, and tax reports with the state and federal authorities. Ethan is self-employed and reports all of his income and expenses in his personal income-tax return. Radford and his friend Shirley run a carpet cleaning business. They distribute the profits proportionately and file their individual taxes. Selena and Mario run a law firm in Chicago. The firm has debt of $100,000, but Selena and Mario will not be held personally liable for the law firm's debt. s offer their owners several advantages, but the benefits come at a price. For Businesses in the form of instance, corporations are required to create a charter, set bylaws, and file mandatory reports with state and federal authorities, which can get expensive and time consuming. The filing document, which requires the company to state: (1) the name of the proposed corporation, (2) types of activities the company will be involved in, (3) amount of capital stock, (4) number of directors, and (5) names and addresses of the directors, is called the corporate Player WIN 19 0 qJ J.JJ © 2004-2015 Apli. All rightsreserved. © 2013 Cengage Learning except as noted. All rights reserved. e It Now

Explanation / Answer

Characterstics that would apply to Corporation are: 1 Easier to transfer wonership in the form of stock 2 Exampt from double taxation 3 Characters by a state and its own entity separate from its owners 4 Owners have limited liabilities 5 Has Unlimited life. Classification of business Akash submit quarterly and annual report relating to Companies financial, annual employment,and tax report Corporation Ethan is self employed submits his income and expenses in his personal income Propritership Radford and his friends run a business Partnership Selena and Mario run a lawfull firm in Chicago Limited Liability Partnership

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