Define terms proprietorship partnership and corporations, Financial Management

Assignment Help:

Briefly define the terms proprietorship, partnership, and corporation.

A proprietorship is a business possessed by one person.

Two or more people who unite together to form a business make up a partnership. This can be done on an informal foundation without a written partnership agreement, or a contract can spell out the responsibilities and rights of each partner.

A restricted liability company is a hybrid between a corporation and a partnership.  Profits and losses pass through to the members.  Members generally enjoy limited liability.

Corporations are legal entities that are separate from their owners. To form a corporation the owners stipulate the governing rules for the running of the business in a contract known as the articles of incorporation. They propose the articles to the government of the state in which the corporation is formed, and the mention issues a charter that creates the separate legal entity.

 

 


Related Discussions:- Define terms proprietorship partnership and corporations

Put provision, An issue with a put provision included in the ag...

An issue with a put provision included in the agreement grants the bondholder the right to sell bonds back to the issuer at a pre-specified rate

Cost of capital.., your firm is considering its household products division...

your firm is considering its household products division. you identify John Lewis as a firm with comparable investments. suppose J.L. equity has a market capitalization of 150 bill

What is sustainable growth, Does the expected value of the sales and of the...

Does the expected value of the sales and of the net income of Spanish companies have anything to do with sustainable growth? No. Sustainable growth it is just a number that sho

Measure a project’s risk as the change in the cv, Define why we measure a p...

Define why we measure a project’s risk as the change in the CV. We calculate a project’s risk as the change in the coefficient of variation since this focuses on the change in

Downgrade risk, Market participants' measure the default risk of an i...

Market participants' measure the default risk of an issue on the basis of the credit ratings that the credit rating agencies assign to the issues. Once rating is

Why is the coefficient of variation a better risk measure, Why is the coeff...

Why is the coefficient of variation a better risk measure to use than the standard deviation when evaluating the risk of capital budgeting projects? The coefficient of variatio

Example on walters dividend model, Q. Example on Walters dividend model? ...

Q. Example on Walters dividend model? Example: - The following information is obtainable in respect of a firm: Capitalisation Rate (Ke)                     = 10% Earning

Difference between transaction and translation risk, Question: You have...

Question: You have been appointed as the head of the treasury of Platza International, an automobile firm with many subsidiaries abroad. The management of Platza International

Debentures, A 16% debenture of R5 000 is redeemable at a premium of 10% aft...

A 16% debenture of R5 000 is redeemable at a premium of 10% after 5 years. The fair rate of return on similar debentures is 14% before tax. Calculate the present value of the capit

Cash management and inventory management, I am facing some problems in my a...

I am facing some problems in my assignment of Cash Management and Inventory Management. Can anybody suggest me the proper explanation for it?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd