Reference no: EM132478542

Five independent situations follow:

Question (a) In each of the situations, explain what form of organization the business is likely to take: proprietorship, partnership, public corporation, or private corporation.

Question (b) Indicate which type of accounting standards-IFRS or ASPE-each of the business organizations you identified in (a) is most likely to use for external reporting purposes.

(a)(b)

Point 1. Three computer science professors have formed a business selling technology that enables digital monitoring of cardiac patients outside of hospital settings. Each has contributed an equal amount of cash and knowledge to the venture. While their plans look promising, they are concerned about the legal liabilities that their business might confront. Private corporationPartnershipProprietorshipPublic corporation

Point 2. Joseph LeBlanc, a student looking for summer work, has opened a bicycle rental shop in a small shed on the Trans Canada Trail system. PartnershipProprietorshipPublic corporationPrivate corporation

Point 3. Robert Steven and Tom Cheng each owned businesses manufacturing customized snowboards and have now decided to combine their businesses. They expect that in the coming year they will need to raise funds to expand their operations. Public corporationProprietorshipPrivate corporationPartnership

Point 4. Darcy Becker, Ellen Sweet, and Meg Dwyer recently completed their Chartered Professional Accountant training after articling with a public accounting firm. Friends since childhood, they have decided to start their own accounting practice. Private corporationProprietorshipPartnershipPublic corporation

Point 5. Hervé Gaudet wants to install and then rent storage lockers in airports across the country. His idea is that customers will be able to leave their luggage at the airport if they have a long layover so they can explore the local surroundings without being burdened with luggage. This will require the rental of space in each airport as well as the hiring of employees and other operating costs.