Determine whether each description best refers to a sole proprietorship, partnership, corporation, or limited liability company (LLC). Description Business Organization a. Trent Company is owned by Trent Malone, who is personally liable for the company's debts. Sole proprietorship b. Micah and Nancy own Financial Services, which pays a business income tax. Micah and Nancy do not have personal responsibility for the debts of Financial Services. Corporation c. Vera is the sole owner of Tech Solutions. The business is a separate legal entity and does not pay an additional business income tax. d. Jeffy Auto is a separate legal entity from its owner, but it does not pay a business income tax. Limited liability company e. Harvey and Louis own NYC Law. Harvey and Louis are jointly liable for partnership debts. f. Physio Products does not pay a business income tax and has one owner. The owner has unlimited liability for business debt. Sole proprietorship g. Oscar, Angela, and Kevin own Accounting Solutions. The business has an indefinite life and pays an additional business income tax. h. IBC Services does not have separate legal existence apart from the one person who owns it. Sole proprietorship
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Trent Company is owned by Trent Malone, who is personally liable for the company's debts. This description best refers to a sole proprietorship. In a sole proprietorship, the owner is personally liable for the company's debts. b. Micah and Nancy own Financial Show more…
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Distinguishing business organizations. The following describes several different business organizations. Determine whether each description best refers to sole proprietorship (SP), partnership (P), corporation (C), limited liability company (LLC). Micah and Nancy own Financial Services, which pays business income tax. Micah and Nancy do not have personal responsibility for the debts of Financial Services. Riley and Kay own Speedy Packages courier service. Both are personally liable for the delivery of the business. IBC Services does not have a separate legal existence apart from the one person who owns it. Trent Company is owned by Trent Malone, who is personally liable for the company's debts. Ownership of Zander Company is divided into 1000 shares of stock. The company pays business income tax. Physio Products does not pay income taxes and has one owner. The owner has unlimited liability for business debt.
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Businesses can be classified into the following forms: proprietorship, partnership, corporation, limited liability company (LLC), and limited liability partnership (LLP). Different forms of businesses have different characteristics. Which of the following characteristics belong to a limited liability company? Check all that apply. - Profits taxed only at the individual level, not at the business level - Ends when the owners die - Not subject to double taxation - Might be an S corporation (a special case with a limited number of shareholders)
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Problem #1 Instructions: Identify the form of business organization(s) to which the following characteristics apply: (a) Owner(s) are personally liable for debts of the business. (b) Is not a taxable entity. (c) Is not created by a charter from a provincial or the federal government. (d) Keeps the accounting of its transactions separate from the owner's(s') personal transactions. (e) May have a contract specifying the division of profits among the owners. (f) Owner or owners are not personally liable for debts of the business. Use the following format to indicate whether or not a characteristic applies to each type of business organization. Note: Just place "Yes" or "No" in the appropriate boxes when answering this problem.
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