Question

QUESTION 13 Listed below are various situations relating to business organizations: 1. Paul's Woodworking does not have a separate legal existence apart from the one person who owns it. 2. Luke and Sheri own Wise Financial Inc., a financial and personal taxation services provider. Neither Luke nor Sheri has personal responsibility of the debts of Wise Financial Inc. 3. Lucky Snacks is owned by Ray Umber, who is personally liable for the debts of the business. 4. Ownership of Tractor and Wheels is divided into thousands of shares. 5. Chris and Melissa own Chris' Curiosity, a restaurant. Both Chris and Melissa are personally liable for the debts of the business. 6 Torby Technologies has two owners and does not pay income taxes. Instructions Determine whether the situation described above refers to a proprietorship, partnership, or corporation. TT T Arial 3 (12pt) v T v Click Save and submitted and guard Seras anstraat ન હોય Save A

Answer 1

1) Sole proprietorship as there is separate legak entity.

2) Corporation as the owners don't have there personal liability and moreover itis Inc i.e incorporation.

3) Sole Proprietorship as Ray Umber is personally liable for all debts

4) Corporation as there are number of shareholders and only corporate firm ccan issue shares neither Sole Proprietorship nor partnership

5) Partnership Firm as both owner's jointly and personally liable for the debts taken by therr firm tractor and wheels

6) Partnership Firm as there are two owners paying the taxes on there share of profits in there personal tax return.

If you have any query regarding this just add in comments ??