Question

The following describe several different business organizations. Determine whether each description best refers to a sole proprietorship (SP), partnership (P), or corporation (C).

a. Micah and Nancy own Financial Services, a financial services provider. Neither Micah nor Nancy has personal responsibility for the debts of Financial Services.

b. Riley and Kay own Speedy Packages, a courier service. Both are personally liable for the debts of the business.

c. IBC Services does not have separate legal existence apart from the one person who owns it.

d. Trent Company is owned by Trent Malone, who is personally liable for the company’s debts.

e. Ownership of Zander Company is divided into 1,000 shares of stock.

f. Physio Products does not pay income taxes and has one owner.

g. AJ Company pays its own income taxes and has two owners.

Short answer

A partnership is when two or more people carry out business. The different business organization is matched to the description.

Step-by-step solution

Definition of Partnership

A partnership is defined as the agreement between two or more people who come together to carry out a business activity and share its profit and losses

Description of different business organizations

S. no	Different Business Organization
1.	Corporation (C)
2.	Partnership (P)
3.	Sole proprietorship (SP)
4.	Sole proprietorship (SP)
5.	Corporation (C)
6.	Sole proprietorship (SP)
7.	Corporation (C)