Scribd Logo
Upload

Welcome to Scribd!

  • 2 views

    Accounting II

    Uploaded by

    sososoverymuch
    Accounting II.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Accounting II

    Uploaded by

    sososoverymuch
    2 views3 pages
    Accounting II.

    Original Title

    accounting II

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Accounting II.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    2 views3 pages

    Accounting II

    Uploaded by

    sososoverymuch
    Accounting II.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    ADDIS ABABA UNIVERSITY

    COLLEGE OF BUSINESS & ECONOMICS

    Department of Accounting and Finance

    Fundamentals of Accounting II
    (AcFn2012)

    Individual Assignment

    Name: Mehret Samson


    ID No: UGR/9577/15
    Section: 4
    Date: June, 2024
    Partnership & Corporation

    A partnership is created by a written agreement of association between


    individuals who pool resources in order to jointly engage in economic activity and
    split the profits is known as a business organization. A partnership business
    organization should fulfill the following at the minimum:

    - Legal personality upon registration, unless it’s a joint venture


    - Name and address of the partnership as well as of the partners
    - Date of commencement and duration
    - Any contributions made, both in-cash and in-kind by the partners
    - Agreement ratio for splitting the profit, loss, and salary
    - Mode of settlement incase of unfavorable events

    The common types of business organizations are as follows:

    1. General Partnership: Consists of partners who are each jointly and severally liable
    with the partnership itself for the obligations of the partnership. Any agreement
    to the contrary may not be invoked against third parties.
    2. Limited liability partnership: Consists of partners who render professional services
    and have active roles in the partnership. The partnership is legally distinct from
    that of the partners, which implies in case of any unfavorable events on a partner
    the partnership will still continue on.
    3. Limited partnership: Consists of both general partners and limited partners. The
    general partners assume liability both jointly and individually for the
    organization’s debts, whereas limited partners are only liable for their respective
    contributions.

    In a partnership, each partner have obligations and rights to savor. Their rights
    include voting, participation, profit share, inquire reports, share assets in case of
    dissolution, and many more as of the agreement. Their obligations contain paying
    contribution in due time, work diligently, unlimited liability, refrain from being
    prejudiced to the partnership, and any other obligations stated in the memorandum.
    A business organization can be dissolved under the right grounds for many
    reasons. For instance, if the goal for the foundation of the partnership seems
    unreachable or it has been fulfilled; if the partners mutually agree to disband the
    business organization, or if the business organization's term ends and they willingly
    don’t renew it. Moreover, if a court declares the business organization bankrupt; a
    partner dies; or there occurs a major dispute among members that prevents the
    organization from achieving its goals. Although disagreements among members shall
    not be a reason to dissolve a business, it should rather be solved by arbitration.

    A corporation is a legal entity, commonly known as a share company with a fixed


    capital and limited liability met only with the company’s assets. The shareholders are
    the contribution maker individuals, who buy stocks in exchange for shares in the
    company. A corporation business organization should fulfill the following at the
    minimum:

    - Company name that doesn’t negatively affect others


    - Minimum capital of 50,000 ETB and Par value 100 ETB
    - Type and number of stocks
    - Manner of distributing profits
    - Number of people in charge respective with their powers
    - The subscribed capital and the amount paid-up
    - Purpose and sector of engagement

    In a corporation there are a few common characteristics. For instance, the share
    holders are limited liable, which suggests that any creditor claims are satisfied only
    by the corporation’s assets. The company is distinct from the owners as well as have
    a long continuous life, easy transferability of shares, and board of directors that
    manage the corporation. On the hind side, there are strict government regulations
    and double taxations once on the corporate level, and then individually on cash
    dividends of stocks.

    You might also like