Nama: NATACIA LIE
NIM: 40011423620037
Prodi: Akuntansi Perpajakan/A
1. Identify three characteristics for each of the principal forms of business organizations.
Proprietorship
1.The sole proprietorship form of
business organization is owned and
governed by an individual owner.
2.Unlimited Liability.
The owner has unlimited personal
liability for the debts and obligations
of the business, risking personal assets.
3.The Owner is responsible and has
complete control over
finances,business,operations,and
profit.
4. Taxation.
Profits and losses are reported on the
owner's personal tax return,
simplifying tax
obligations.
5. A business can end
when the owner dies.
6. Decision-Making Autonomy . The
owner has complete control over
business decisions and
operations, allowing for quick
decision-making and flexibility.
7. Limited Capital.
Sole proprietors may face challenges
in raising capital, as they rely on
personal savings or loans.
2. Classify each of the following activities as a financing, investing, or operating facility.
1) Receiving a loan from a bank : Financing
Unit 7
Businnes Organization
Partnership
1.Shared Responsibility.
Partnerships involve two or more
individuals sharing the
responsibilities, decision-making,
and profits of the business. This
shared responsibility can provide
additional expertise and
resources.
2.Pass-Through Taxation: Like
sole proprietorships, partnerships
often have pass-through taxation.
Profits and losses pass through to
the individual partners' personal
income tax returns.
3.Flexibility in Management:
Partnerships can have a flexible
management structure. Depending
on the type of partnership
(general or limited), partners may
have equal or varied levels of
control and liability.
4. Mutual Agency : Each partner
can act on behalf of the
partnership, and their actions are
binding on the business.
5.Contractuactual relationship
6. More Capital. Partnerships may
find it easier to raise capital
compared to sole proprietorships
due to contributions from multiple
partners.
Corporation
1.Limited Liability. Shareholders are not
personally liable for the company's
debts,their liability is limited to the
amount invested in the company.
2.Separate Legal Entity. Corporations
are distinct legal entities, separate from
their owners, providing additional legal
protection.
3.Complex Formation.Corporations
require more formalities and paperwork
for formation, involving the issuance of
stock and adherence to regulatory
requirements.
4.ProfessionalManagement.
Corporations often have a clear
hierarchy with a board of directors
overseeing professional managers,
separating ownership from day-to-day
operations.
5.Transferable Ownership.Shares of a
corporation can be easily bought and
sold, providing liquidity for
shareholders.
6.Continuous Existence.The death or
departure of a shareholder does not
affect the corporation's existence.
7.Double Taxation: Corporations are
subject to corporate income tax, and
shareholders are also taxed on dividends
received, resulting in potential double
taxation.
2) Purchasing Raw materials : Operating
3) Selling products online : Operating
4) Issuing shares of stock in exchange of cash: Financing
5) Purchasing a delivery truck : Investing
6) Paying employee salaries : Operating