UNIT 5 Study Guide

UNIT 5 Study Guide - UNIT 5 1. Describe the Entity...

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UNIT 5 1. Describe the “Entity Principle”, and describe some of the ways that entities can come into existence. - Entity: Separate Existence - The entity does its own accounting and bookkeeping - Accounting is always from the perspective of the entity - the entity’s accounts are always kept separately (from the owners personal accounting) Formation: - Business license, registration (usually proprietorships and partnerships) -Partnership Agreement or Contract (partnerships) - by-laws, constitutions, charter (societies, associations, institutes, academies, governments) - articles of incorporation, corporate charter (corporations) 2. Differentiate between business entities and NFP’s, governments, and quasi- government entities. - Business entities o work for a profit - NFP o Not for profit - Governments o Takes care nationally - Quasi government o Government owned o Focuses within state, commercial things 3. List and describe the three forms of ownership of business entities. Proprietorship-
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UNIT 5 Study Guide - UNIT 5 1. Describe the Entity...

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