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3 years ago

LO 2.1Identify the three primary classifications of businesses and explain the differences among the three.

Business

1 answer:

cricket20 [7]3 years ago

8 0

Three Primary Classifications of Businesses

We can classify businesses into following three types

1: Sole Proprietorship

2: Partnership

3: Corporation

Explanation of the Differences Among Them

Sole Proprietorship

It is also known as the sole ownership, it is run by one single person who works as the owner, this type does not fall under any legal entity title. It is most simplest form of business where one man, the owner bears all the profits, losses and responsibilities like local grocery corner shop etc.

Partnership

Here in partnership, there are two or more than two persons who open a businesses on profit and loss sharing basis which could be different as per their agreement. They all are equally responsible for the responsibilities and liabilities of that business.

Corporation

Corporation can defined as a legal entity which has nothing to do with owners, it is totally a separated being from its owners. It has its own liability, functions and rules. Corporation can sign any contract by its own even without interference from its owners. It has board of governors who basically run them independently. Walmart, Apple, Microsoft, Samsung, Nokia are the best examples of Corporation

Therefore, these are basic differences between these three primary types of businesses.

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International issues of social responsibility and ethical behavior are: difficult and not as clear-cut as U.S. firms would like

Arlecino [84]

Answer: difficult and not as clear-cut as U.S. firms would like them to be

Explanation:

The issues associated with social responsibility and ethical problems doesn't pertain to a particular income level or economic system.

Even though businesses in the United States always demand socially responsible behavior and good ethics from their international suppliers, the issues of social responsibility and ethical behavior are still difficult and not as clear-cut as they want them to be.

This is really a bothering issue as.it has even been suggested in the past whether the international suppliers should be made to adhere to the laws I the United States.

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3 years ago

Miramar Industries manufactures two products, A and B. The manufacturing operation involves three overhead activities - producti

PolarNik [594]

Answer:

General overhead= $3.81 per direct labor hour

Explanation:

Given the following information:

General Overhead $80,000 Number of direct labor hours

Number of direct labor hours 9,000 12,000= 21,000

<u>To calculate the activity rate, we need to use the following formula:</u>

Activity rate= estimated costs / total amount of allocation rate

General Overhead= 80,000 / 21,000

General overhead= $3.81 per direct labor hour

8 0

2 years ago

What is the proper adjusting entry at December 31, the end of the accounting period, if the balance in the prepaid insurance acc

Darina [25.2K]

Answer:

Insurance $4,800 (debit)

prepaid insurance $4,800 (credit)

Explanation:

In order to find out adjusting entries. firstly, we need to calculate the difference between prepaid insurance account and Insurance account.

That could be done by subtracting $3,550 from $8,350.

Difference = 8350-3550= 4800

6 0

3 years ago

If an agent injures a third party during the course of employment, to what extent should the employer be held liable? Under what

postnew [5]

Answer:

The employer will be held liable.

Explanation:

If the external agent brings harm or injury to a third party in the course of an employment, the employer is held liable. When a principal directs an agent to commit for a tort or if the principal is aware of the consequences of carrying the instructions of the agent could cause harm or injure the person, then the principal is liable.

It is called direct liability.

The liability for the intentional tort which is imputed to the principal when the agent acts to further the business of the principal.

The agent is personally liable under the following circumstances :

Foreign principal
Agent signs the contract in his own name
Non-existent principal
Principal cannot be sued:
Undisclosed principal

Example :

A credit card company hires a sales person and offers a company van to make sales in that area. The sales person uses the office van to official purposes. But one night, he drove the car to a friend's party and while coming he drove over a pedestrian. In this case, the owner of the company will not be held liable as the sales person uses the company van for his personal use while going out for party with his friends. While causing the accident, the sales person was not not using the office van for official purposes and was not tendering official duties at that time.

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3 years ago

The business arrangement in the newspaper industry in which two separately owned papers in the same city are permitted to combin

musickatia [10]

Answer: Joint operating agreement

Explanation:

The joint operating agreement is one of the concept that helps in protecting the business or the industry from the failure that helps in governing the partnership between any two organization.

In this type of agreement any two organization are basically contributing their power and the resources for producing the effective result.

According to the given question, the newspaper industry is one of the example of joint operating agreement in which two companies are permitted for combining their business. Therefore, Joint operating agreement is the correct answer.

8 0

3 years ago