Accounting for Business: Types of Business Enterprise and Long Term Sources of Finance for Listed Companies

ACCOUNTING FOR
BUSINESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Explaining reason for three different types of business enterprise along with example.............3
Evaluating difference between two form share capital and debt for long term source of finance
for listed companies.....................................................................................................................4
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Accounting is measurement, processing and communication of financial & non-monetary
information which leads to take strategic decision. In the current era, there is higher competition
which require firm to pay attention on developing effective accounting system in business so that
effectiveness can be derived. Current report will highlight tree different types of business along
with example. Recent study will include difference between two forms share capital and debt in
long term sources of finance of listed public companies.
MAIN BODY
Explaining reason for three different types of business enterprise along with example
There are different types of business which operates on distinct scale for the purpose of
gaining various benefits (Cohen, 2017). The different types of business involve solve proprietor,
partnership and companies.
Sole proprietor is one of the business form which is concerned with managing and
controlling operational practices individually (Akan and Tevfik, 2020). It is one of the simplest
form of business type in accounting in which sole proprietor owns and manages business by
himself. There is no interference of third party in respect to managing, controlling, organizing,
etc. business practices. The main reason behind its existence involves distinct benefits that can be
achieved by applying this form of business. It includes easy establishment, no asset's bifurcation,
full control & ownership stake, higher confidentiality, minimal reporting requirements, tax
advantages, etc. from the evaluation it can be articulated that for obtaining these kinds of benefits
entrepreneur choose to sole proprietorship in turn higher profitability can be derived
(Akhmetshin and et.al., 2018). It can lead businessman to take independent decisions for
overcoming prevailing challenges.
Partnership refers to forming business by involving two or more partners who indulge
into agreements for clarifying sharing of profits and losses (Murthy, Roll and Colin-Jones, 2021).
The agreement in which partners enter are called as partnership deep that helps in making clarity
among partners regarding roles, responsibilities, etc. it helps in overcoming conflict, disputes,
etc. that aids in gaining distinct skills, abilities and experience for accomplishing business
objectives (McCartney, 2021). The reason underlying the fact behind selection of this particular
form of business includes combined capital, availability of expertise & knowledge, cost saving,
more business opportunities, better collaboration, moral supports, new perspectives, potential tax