Partnership two or more owners controlled apart from

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: porated. • Partnership: two or more owners, controlled apart from the partners personal interests but not a separate legal entity, is not incorporated. • Corporation: a business unit that is granted a state charter and is recognized as a separate legal entity, owners are stockholders but do not generally run the day to day operations Comparative Features of the Forms of Business Organizations Sole Proprietorship Partnership Corporation Not a separate entity Not a separate entity Separate entity Risk of ownership Owner's personal resources at stake Partner's personal resources at stake Limited to investment by the corporation Duration of life Limited by choice or death of owner Limited by choice or death of any partner Indefinite life Transferability of Ownership Sale of owner establishes a new company Changes in any partner's percentage ownership requires new partnership Transferable by sale of stock; no impact on the company's books Accounting treatment Separate Separate Separate Legal status Types of Business Activities: Operating Activities: Includes all cash inflows and outflows related to the normal operations of a business (Ex. Selling g...
View Full Document

This note was uploaded on 01/22/2014 for the course ACG 2021 taught by Professor Linkovich during the Spring '08 term at University of South Florida - Tampa.

Ask a homework question - tutors are online