The Characteristics Below Apply to at Least One of the Forms

question 18

Essay

The characteristics below apply to at least one of the forms of business organization.
a. Is a separate legal entity?
b. Is allowed to be owned by one person only?
c. Owner or owners are personally liable for debts of the business.
d. Is a taxable entity?
e. Is a business entity?
f. May have a contract specifying the division of profits among the owners?
g. Has an unlimited life.
Use the following format to indicate (with a yes or no) whether or not a characteristic applies to each type of business organization.
$\begin{array}{|l|l|l|l|}\hline & \text { Proprietorship } & \text { Partnership } & \text { Corporation } \\\hline \text { a } & & & \\\hline \text { b } & & & \\\hline \text { c } & & & \\\hline \text { d } & & & \\\hline \text { e } & & & \\\hline \text { f } & & & \\\hline \text { g } & & & \\\hline\end{array}$

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Definitions:

Business Combination

A transaction or event where a company acquires control over one or more businesses, often through a merger or acquisition.

Common Stock

A type of equity ownership in a corporation, representing a claim on a portion of the profits and assets, with voting rights.

Fair Value

The estimated market price of an asset or liability, reflecting the amount for which it could be exchanged in a current transaction between willing parties.

Par Value

A nominal or face value assigned to a share of stock by the issuing company, which has legal and accounting implications but often little relation to the market value.