All categories

3 years ago

Unlike a general partnership, in a limited partnership

Business

1 answer:

Trava [24]3 years ago

7 0

In a limited partnership:

The inactive partner has limited liability for the business's debts

Explanation:

In a general partnership all partners share equal financial responsibility for the firm's decisions.

This means that all partners are supposed to have equal liabilities but hat is not the case for limited ones.

In limited partnerships there is a general partner who owns most of the business and has most of the availability and the limited partner has pooled resources for the business but has very little personal responsibility to it.

This model is usually there when the firm needs some investors and the person running business is usually the owner only.

You might be interested in

Dowd, Elgar, Frost, and Grant formed a general partnership. Their written partnership agreement provided that the profits would

goblinko [34]

Answer:

The answer is: Edgar will receive $37,000

Explanation:

Dowd's share of the company's losses is $80,000
Edgar's share of the company's losses is $60,000
Frost's share of the company's losses is $40,000
Grant's share of the company's losses is $20,000

But since Grant is not willing to give more money to the partnership to cover his losses, the $9,000 difference must be divided by the remaining three partners. So they will divide Grant's losses as follows:

Dowd's share of the Grant's losses is $3,600

Edgar's share of the Grant's losses is $2,700

Frost's share of the Grant's losses is $1,800

Then you add up all the losses the three remaining partners had:

Dowd' total losses $83,600
Edgar's total losses $62,700
Frost's total losses $21,800

So when the partnership was dissolved, Edgar should have received $100,000 (capital) - $62,700 (total losses) = $37,200

I selected answer A since they probably rounded down Edgar's share to $37,000 (nearest possible choice).

6 0

3 years ago

In the Month of March, Chester Corporation received orders of 154 units at a price of $15.00 for their product Clack. Chester us

julsineya [31]

Answer:

March revenue:

102 units x 15 dollar each = 1,530

April revenue

51 units x 15 dollars each = 765

Explanation:

We recognize based on the delivery of the goods which is the point at which the trasnfer of ownership occurs. Once the good are delvierired; the customer is the owner of them and can use them as see fit, is responsabile for their condition and wellbeing.

8 0

3 years ago

Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at rd = 11%, and its common sto

ANTONII [103]

Answer:

16.30%

Explanation:

Calculation for what the percentage of the company's capital structure consists of debt

Using this formula

rs=D1/P0+g

First step is to find the D1 using this formula

D1=(1+Dividend expected grow constant rate) *+Dividend per share

Let plug in the formula

D1=(1+0.07)*$2.00

D1=1.07*$2.00

D1=$2.14

Now let find the percentage of the company's capital structure Using this formula

rs=D1/P0+g

Let plug in the formula

rs=$2.14/$23.00+0.07

rs=0.09304947+0.07

rs=0.1630*100

rs=16.30%

Therefore the percentage of the company's capital structure consists of debt will be 16.30%

5 0

3 years ago

The following expenditures relating to plant assets were made by Prather Company during the first 2 months of 2020. Opposite eac

hammer [34]

Answer: Please refer to Explanation

Explanation:

1.Paid $5,000 of accrued taxes at time plant site was acquired.

LAND ACCOUNT because it is to be capitalized as it was part of the Acquisition Cost.

2.Paid $200 insurance to cover possible accident loss on new factory machinery while the machinery was in transit.

EQUIPMENT ACCOUNT as it is part of Acquisition Cost.

3.Paid $850 sales taxes on new delivery truck.

EQUIPMENT ACCOUNT as it is again part of Acquisition Cost.

4.Paid $17,500 for parking lots and driveways on new plant site.

LAND IMPROVEMENT ACCOUNT

5.Paid $250 to have company name and advertising slogan painted on new delivery truck.

EQUIPMENT ACCOUNT as it is a cost of setting the PPE up.

6.Paid $8,000 for installation of new factory machinery.

EQUIPMENT ACCOUNT as this expense is again part of setting the equipment up.

7.Paid $900 for one-year accident insurance policy on new delivery truck.

PREPAID INSURANCE because this is a periodic cost and those are not capitalized as they provide only a short term benefit.

8.Paid $75 motor vehicle license fee on the new truck.

LICENSE EXPENSE because it is also a period cost.

6 0

3 years ago

A limited liability company is best thought of as a cross between a partnership and a:

8_murik_8 [283]

An LLC is a cross between a partnership and a corporation, because you have the flexibility of a partnership but more of the legal and financial protections that a corporation has.

7 0

3 years ago