40 PLR Accounting Articles - Accounting PLR Articles
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The Accounting PLR articles are titled:
What Is Accounting Anyway
Basic Accounting Principles
Profit and Loss
Making a Profit
Assets and Liabilities
Gains and Losses
Revenue and Receivables
Inventory and Expenses
Investing and Financing
Building a Cash Cushion
Managing the Bottom Line
What Is the FASB
What Are Auditors
What Is Forensic Accounting
Who Uses Forensic Accountants
What is the Sarbanes-Oxley Act
What Happened at Enron
What Happened in Corporate Accounting Scandals
What Is Financial Windowdressing
What Is a Corporation
What Are Partnerships and Limited Liability Companies
What Is the Sole Proprietorship
Types of Costs
Parts of an Income Statement # 1
Parts of an Income Statement #2
Parts of an Income Statement #3
How to Analyze Financial Statements
What Is Price Earnings Ratio
Pvt. Versus Public Reporting
What Are the Other Ratios
What Is Acid Test Ratio and Roa Ratio
What Our Independent Auditors
What Is Accounting Fraud
What Does an Audit Do
What Does an Audit Report Contained
How Is Accounting Used in Business
Accounting PLR Example:
What are partnerships and limited liability companies?
Some business owners choose to create partnerships or limited liability companies instead of a corporation. A partnership can also be called a firm, and refers to an association of a group of individuals working together in a business or professional practice.
While corporations have rigid rules about how they are structured, partnerships and limited liability companies allow the division of management authority, profit sharing and ownership rights among the owners to be very flexible.
Partnerships fall into two categories. General partners are subject to unlimited liability. If a business can't pay its debts, its creditors can demand payment from the general partners' personal assets. General partners have the authority and responsibility to manage the business. They're analogous to the president and other officers of a corporation.
Limited partners escape the unlimited liability that the general partners have. They are not responsible as individuals, for the liabilities of the partnership. These are junior partners who have ownership rights to the profits of the business, but they don't generally participate in the high-level management of the business. A partnership must have one or more general partners.
A limited liability company (LLC) is becoming more prevalent among smaller businesses. An LLC is like a corporation regarding limited liability and it's like a partnership regarding the flexibility of dividing profit among the owners. Its advantage over other types of ownership is its flexibility in how profit and management authority are determined. This can have a downside. The owners must enter into very detailed agreements about how the profits and management responsibilities are divided. It can get very complicated and generally requires the services of a lawyer to draw up the agreement.
A partnership or LLC agreement specifies how profits will be divided among the owners. While stockholders of a corporation receive a share of profit that's directly related to how many shares they own, a partnership or LLC does not have to divide profit according to how much each partner invested. Invested capital is only of the factors that are used in allocating and distributing profits.
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