Accounting in Business

Accounting in
Business
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Accounting in Business 1
Contents
Introduction......................................................................................................................................2
Options of the forms of organisation...............................................................................................3
Sole proprietorship.......................................................................................................................3
Partnerships..................................................................................................................................3
Choice of organisation affects the availability of finance...............................................................4
Fund raising and security.................................................................................................................5
Accounting information and non-financial information assist Tim in making decisions in
purchasing business.........................................................................................................................6
Skills and/or accounting knowledge will he need to manage the business.....................................6
Conclusion and recommendations...................................................................................................8
References........................................................................................................................................9

Accounting in Business 2
Introduction
The aim of the assignment is to focus on the accounting principles as well as theories that are
related to the business. In this report, the scenario has been presented in which Tim, a friend
wants to start with a business. Tim is looking to purchase a delicatessen in Sydney. There is no
great success of the shop, which is already present in the market. Now, he does not have savings
and looking to borrow a large amount of money to finance. Being accounting student, the report
includes the advice for Tim.

Accounting in Business 3
Options of the forms of organisation
In the market, Tim can adopt wide range of options for the organisation, which are explained
along with the advantages, and disadvantages of every option for Tim.
Sole proprietorship
It is business form, in which business is owned by only one person; Tim can alone make
purchase of the delicatessen in Sydney.
Advantages
 Easiest and least expensive
 Profit of business is attained by single owner
 Complete control of business remains in one hand (Schroeder, Clark and Cathey, 2019)
Disadvantages
 Unlimited liability and remain responsible for all debt
 Disadvantage in raising funds
Partnerships
Tim can select for the partnership in which two or more people can share the ownership of one
business (Schroeder, Clark, and Cathey, 2019). In this, they can search for the right partners for
them to purchase the business together.
Advantages
 High ability to raise the funds