Exercise Accounting and Business Organizations

Exercise Accounting and Business Organizations - person who...

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Exercise 1-1 1. Ownership of Spirit Company is divided into 1,000 shares of stock. This is a corporation 2. Delta is owned by Sarah Gomez, who is personally liable for the debts of the business. This is a sole proprietorship 3. Jo Chen and Al Fitch own Financial Services, a financial services provider. Neither Chen nor Fitch has personal responsibility for the debts of Financial Services. This is a corporation 4. Sung Kwon and Frank Heflin own Get-It-There, a courier service. Both are personally liable for the debts the debts of the business. This is a partnership 5. XLT Services does not have separate legal existence apart from the one
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Unformatted text preview: person who owns it. This is a sole proprietorship 6. BioProducts does not pay income taxes and has one owner. This is a sole proprietorship 7. Tampa Biz pays its own income taxes and has two owners. This is a corporation Exercise 1-4 Three external users of accounting information are entrepreneur, retailers, and business owners. The questions that they would seek an answer to could be: How will I know if my business is profitable? How can I track the money I am bringing in and the money that is going out of the business?...
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Exercise Accounting and Business Organizations - person who...

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