Types of Business Enterprise and Difference between Share Capital and Long-term Debt Public Limited Companies

Accounting for Business

TABLE OF CONTENTS
TABLE OF CONTENTS..............................................................................................................2
INTRODUCTION...........................................................................................................................3
1.Different types of business enterprise......................................................................................3
2. Difference between two forms share capital and long-term debt public limited companies.. 4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Business accounting is the systematic process in which the company perform activities
like recording of financial information. The case study will describe about accounting and types
of business enterprise. financial accounting is the reports of finance which provide detailed
information about company's performance and its market position.
1.Different types of business enterprise.
There are various types of business enterprise, each company has its own rules, policies
and legal structure. Before deciding to create business or establish a company, entrepreneurs and
owner should carefully consider which type of structure is suitable for them.
Sole traders
A sole proprietorship is a company that is run by single person only. This is the simplest
type of business which offers the least amount of financial protection for the entrepreneurs. They
do not create a separate legal identity thus; the company's owner shares the same identification.
So, the company's owner is liable for any and all debts and liabilities incurred by the
organization. If the entrepreneur wants to retain and make profits with full control of the
company then they must choose this option effectively. According to experts, it is noted that it is
easy and low expensive process. Moreover, the income is considered the personal income of the
owner, so there are also tax benefits for them.
Partnership firm
In this type of company, two or more member can come together in order to form
business. The company is required to draft a document called partnership deed; it should be
signed by all the partners which also includes detailed information about them. This document
must clearly mention the names of firm, partners identity and profit-sharing ratio among them.
Also, the deed must clearly specify duties, policies, obligation and rights of each and every
partner. The documents must mention salaries and other allowances. All the partners are liable
for any liabilities and gains incurred by firm. In limited partnership, the company must have at
least one general partner. On the other hand, limited liability partnership firm is the company
where partners are responsible for the business operations equally.
Company