Answer: Partnership
A partnership is a from of business ownership who come together with mutual consent in order to manage the business and share its profits.
The terms and conditions of this agreement and the quantum of profit for each partner is clearly stated in a document called the partnership agreement.
All the partners who actively manage the business and share the profits are called General Partners. The general partners are jointly and severally liable for the debts incurred by the partnership.
The form of business ownership was a partnership.
Further Explanation:
Partnership:
Partnership refers to the formal agreement between two or more parties for carrying out the business activities and participates in the profit and loss sharing of the business. There are many types of partnerships. In partnership, the liabilities of the partners are unlimited. However, in the case of limited liability partnership, the liabilities of the partners are limited.
Determine the form of business ownership:
In the given case, Troy formed a business relationship with Charlie Pappe. Earlier, the Sonic brand was managed and operated by Troy alone. Therefore, it was a sole proprietorship before the introduction of Charlie Pappe. After the introduction of Charlie Pappe, there are two members in the business ownership. The business form of two people is classified as a partnership.
Thus, the form of business ownership was a partnership.
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Answer Details:
Grade: Middle school
Chapter: Partnership
Subject: Business studies
Keywords: sonic, brand, grew, troy, smith, formed, business, relationship, Charlie, Pappe, form, business, ownership, unlimited partnership, company, two or more, members.
Answer:
Rate of return = 6.5%
Explanation:
Given:
Initial investment = $6,000
Current market price = $15 per share
Number of stock = 400
Missing Growth rate = 8%
Find:
Rate of return
Computation:
Increase in investment = $6,000 x 8%
Increase in investment = $480
Interest paid = $3,000 x 9.5%
Interest paid = $285
Rate of return = [480 - 285]/3,000
Rate of return = 6.5%
Answer:
You could use the internet to make ads for your business and you can also make a website for your business, and focus on customer service and you can make social media to share what you do.
b. Cost-benefit.
c. Reliability.
d. Faithful representation.
Answer:
B. Cost-Benefit
Explanation:
According to the Financial Accounting Standard Board (FASB) framework, it is important to estimate the cost and benefit of information before deciding the relevance of the information. It decides when to disclose and whether to disclose the information
Once, the cost of such information outweighs the benefits of its disclosure then FASB framework terms it as not relevant.
Cost of Information
Financial reporting through the preparation of financial statements has a cost, these costs include provision, preparation as well as the audit of the information provided. The cost-benefit constraint basically intends to ensure that financial statements are most-effectively and most-efficiently prepared.