Ask Question
BusinessBusiness
4 February, 21:50

The following are some business scenarios. Using the description of each business, classify it as a sole proprietorship, a partnership, a corporation, or a limited liability company/limited liability partnership.

1. Jacob founded and operated a wedding planning agency, which specialized in celebrity weddings. When he died, his business was dissolved because there was no plan for control after his death.

2. Wilson started a business, based in a different state, with his uncle. Due to the business's underperformance, they had to close the business. Wilson, however, ended up losing his house due to a litigation claim.

3. DDX Co. is a shipping company. David owned 1,000 shares of DDX stock. He found better opportunities and sold his entire stake in DDX to another investor. 4. Selena and Mario run a law firm in Chicago. The firm has a debt of $100,000, but Selena and Mario will not be held personally liable for the law firm's debt.

+5
Answers (1)
  1. 5 February, 00:31
    0
    The correct answer for 1 is Proprietorship, 2 is partnership, 3 is corporation and 4 is LLC/LLP.

    Explanation:

    The following type of business can be defined as:

    Proprietorship: This type of business owned by a single person and he has unlimited liability for it. Partnership: This type of business owned by two or more peoples and all partners has unlimited liability for it. Corporation: This type of business owned by a group of peoples, known as the board of directors and there are many shareholders in the company. LLC/LLP: This type of business can be owned by a minimum of two directors who have limited or no personal liability for the company.

    Accordingly, the answer is as follows:

    1. As Jacob is the only owner of the business and the business dissolved when he dies shows the proprietorship type of business.

    2. Wilson and his uncle are the owners of business and Wilson have to pay liability by losing his home shows the partnership type of business.

    3. As David is a shareholder in DDX Co. it shows the Corporation type of business.

    4. As Selena and Mario are two owners of the company and they are not liable for the debt of the company shows the LLC/LLP type of business.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The following are some business scenarios. Using the description of each business, classify it as a sole proprietorship, a partnership, a ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
In which case can we be sure aggregate demand shifts left overall? a. people want to save more for retirement and the Fed increases the money supply. b. people want to save more for retirement and the Fed decreases the money supply. c.
Answers (1)
Peter Ittig's department store, Ittig Brothers, is Amherst's largest independent clothier. The store receives an average of 8 returns per day. Using z = 3, the control chart limits are: what are UCL and LCL?
Answers (1)
Gomez Inc.'s charter authorizes 1,000 shares of stock at a par value of $1 per share. Gomez sells 200 shares of stock at its initial offering for $1 per share. The journal entry to record this transaction will include which of the following entries
Answers (1)
Which of the following mechanical principles must be adopted by organizations creating a lean production system? a. Implementing smooth production to support efficient operation. b. Acquiring a large stock of inventory to avoid stock out. c.
Answers (1)
A local company makes athletic clothing and they are preparing aggregate production plans on a quarterly basis for the coming year for their line of women's wear.
Answers (1)
New Questions in Business
Digby has a roe of 0.24 (roe = net income/equity). that means:
Answers (1)
If a bank depositor withdraws $1000 of currency from an account, what happens to bank reserves, checkable deposits, and the monetary base? Assume that the required reserve ratio on checkable deposits is 10% and banks do not hold any excess reserves.
Answers (1)
During the Great Depression, consumer spending was higher than ever in history. Question 10 options: True False
Answers (2)
A property is being appraised by the cost approach. The appraiser estimates that the land is worth $17,000 and the replacement cost of the improvements is $235,000. Total depreciation from all causes is $23,000.
Answers (1)
NorthWest Corp. obtained the following information from its accounting records: Sales $70,000 Beginning Finished Goods Inventory $10,000 Ending Finished Goods Inventory $46,000 Cost of Goods Sold $22,000 Ending Work-in-Process Inventory $30,000
Answers (1)
Home » Business » The following are some business scenarios. Using the description of each business, classify it as a sole proprietorship, a partnership, a corporation, or a limited liability company/limited liability partnership. 1.
Sign Up Forgot Password?