ACCTG 231 Study Guide - Final Guide: Legal Personality, Accounts Payable, Uniform Partnership Act
14 Dec 2016
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Business organization forms: sole proprietorship: one person ownership. Most common form, about 72% of all businesses; 22,614,000; transact. Usually small due to limited resource availability. Not taxed as a spate legal entity; the person is the business and the business is the person. Taxes paid on the individual(cid:495)s personal tax return. Unlimited liability; can lose everything you own to satisfy creditors. Limited life; owner quits or dies, so does the business: partnership: two or more owners. About 9% of all businesses; 3,146,000; transact ,963,000,000. Need a partnership agreement; without a partnership agreement, the court can dictate outcome disputes under the uniform partnership act (generally the court just splits the assets) Unlimited liability; creditors can seize personal assets to satisfy a debt. Mutual agency; each partner is responsible for actions of other partners. Limited life; death of any one of the partners dissolves the partnerships. Not taxed as a separate legal entity.
