Accounting

1. What are the advantages and disadvantages of a corporate ownership structure?

2. Why is a salary allowance used in the allocation of income in a partnership?

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3. Why is an interest allowance used in the allocation of income in a partnership?

1. Are salary and interest allowances considered partnership expenses? Why?

2. Why is it possible for a partner’s equity to increase when the partnership generates a loss?

3. Compare and contrast common stock versus preferred stock.

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