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the main difference is that the earnings of the partnership pass directly to the owners/partners of the business. A corporation is a seperate legal entity and are taxed seperately and the earnings are only passed to the owners/shareholders when dividends are paid.
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∙ 12y ago
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Which is an advantage of corporations over strong partnerships?
Corporations can last longer. Corporations have limited liability.
What are some ways in which accounting for health care organizations especially not-for-profit ones tends to differ from accounting in other industries?
accounting for healthcare organizations in not-for-profit ,tend to differ from accounting in other industries.
Why is the accounting entity concept so fundamental that it pervades all of accounting?
The type of entity dictates the entries to be made for certain transactions. For instance "withdrawals" from sole proprietorships, partnerhips and corporations are recorded (and taxed) differently. That's boiling the issue down to an absolute minimum, and perhaps oversimplyfying it, as there are tax regulation differences between (within) various types of corporations and partnerships that affect the recording of transactions even more.
How does the accounting treatment of a partner's salary differ from that of an employee's salary in a partnership?
How does the accounting treatment of a partner's salary differ from that of an employee's salary in a partnership?
Who pays the utility bills in a corporation?
Bills to companies and corporations are usually sent to the accounting department; a segment of accounting is 'accounts payable'.
Advantage corporations enjoy over partnerships?
Corporations are protected from liability. Partnerships aren't. If a partnerships is sued, the partners are responsible. It is better to incorporate if you are dealing with the public.
Which is an advantage of corporations over strong partnerships?
Corporations can last longer. Corporations have limited liability.
What is the advantage of corporations?
S corporations' major benefit is that they are taxed like partnerships.
What is the major advantages of corporations?
S corporations' major benefit is that they are taxed like partnerships.
What were the advantages of corporations over partnerships and Why were they good for investors and partners?
Corporations have limited liability.
What were the advantages of corporations over partnerships Why were they good for investors and partners?
Corporations have limited liability.
What is the Most Common Forms of Business?
partnerships, corporations, and sole proprietorships
What is true about corporations in the 1800s?
They could grow faster than partnerships.
Compare and contrast partnerships and corporations?
compare and contras partnership and corporation
Why is it usually safer to invest in corporate stocks than to become a partner in business?
Partnerships have unlimited liability, while corporations have limited liability.
Which types of businesses can be converted to an LLC?
General partnerships, limited partnerships, and corporations may be converted to LLCs, provided they comply with certain requirements.
Why were corporations better for large businesses than partnerships?
Corporations could continue to exist after managers died. Corporations could quickly raise money by selling shares of stock. Corporations can grow much faster.
