Question

What are the unique financial reporting implications of the Partnership entity in comparison with the Proprietorship and Corporate structures? How does the closing process differ for the Partnership?

Answer 1

Answ The financial reporting implications of every business type is different. It as it different in various terms for partnershirt P, sole proprietorship or for the business corporations. 1 terms of ownership: I partnership it is in the hands of the partners according to their accepted ratio of share. In Propoeietorship it is in hands of the single owner. The business corporations have very differ- ent process of ownership anthoms of ratio of sharing profits, shares etc. liability in both liability holders partnership and sole proprietorship is unlimited and the share diability as limited. Profits The profit is shared according to

terms and ratio decided between the Partners. OO no corporations they provide dividende to the shareholders, to bring stability hiquidation are evoiron o erogging Procedures are different for every business organization in Proprietorship as there is single owner he need to set off the liabilities and fölé a tax return !" 1 ! In partnership tion , they need to open a account ie, realization as and transfer all the funds generated from sale of a total assets and they have to pay off the di abilities. The balance is shared between partners according to teams. in case of corporations its totally opposite here a liquidator os appointed to complete and liquidation the all procedures of funds are Owner paid off as outside liabilit shut "y. There are various reasons for down and liquidation such as bankruptcy losses, etc. borne 2 11.087 0 CNC