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Determine the Various forms of business organizations
There are various forms of business organizations:
o Business-organization's objective is to earn a profit
o Sole Proprietorship-a business owned by one person
o Partnership-co-owned by two or more persons
o Corporation-owned by investors known as stockholders (Business-not owners-are responsible for company's obligations.)
o Limited liability company (LLC)-combines aspects of a corporation and a proprietorship
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An item of plant was purchased for $100,000 on 1 January 2009. At that time its estimated residual value was $5,000. At 31 December 2009 prices, the residual value was estimated at
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SURVIVORSHIP POLICY The partners may take out a survivorship policy to safeguard against future cashflow problems incase a partner dies or the business is dissolved. E.g. incas
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