Holmes Institute T3 2019 HC1010: Accounting for Business Presentation

This presentation focuses on accounting for business, specifically aiding a friend, Rob, in purchasing a bakery store in Melbourne. It begins by comparing the advantages and disadvantages of two business organization forms: partnership and sole proprietorship. The presentation then explores fund-raising strategies under each form, including sources of funds and required securities, emphasizing how the choice of business form impacts fund availability. It also details the accounting and non-financial information Rob needs, highlighting the importance of financial statement analysis and accounting skills. The presentation concludes by recommending a partnership to effectively utilize available funds and secure additional investment.

Hello Everyone,
My topic for today’s presentation is Accounting for Business.
This presentation is all about provide a support to friend that is Rob in purchasing a bakery
store in Melbourne by making different decisions related to business.
In the initial part, the presentation is discussing about two forms of business organization that
Rob can select to start. The two forms that Rob can select is Partnership and Sole
Proprietorship and their advantages and disadvantages.
Partnership – Under this form of organization, the partners has unlimited liability for the
actions performed in the business. Besides this, the partners in this share some proportion of
profit and losses. It works as a source of funds in the form of a new business partner and
provide benefit of specialized skill require to run a business. However, the disadvantage of
this is that this is a instable form of organization.
Sole Proprietorship - This form of organization is also called as sole trading business in
which there is only owner who owns and handles the business. Along with this, the owner
also takes the benefit of all the profit earned but also face the critics at the time of losses. In
this the advantage is that the owner gets complete ownership of the business, but the
disadvantage is that it has unlimited liability for the owner.
The second part of the presentation is discussing about how Rob can raise funds under both
the forms of organization and security required to arrange the funds.
There are different sources of funds that can be used by Rob for starting a business.
Partnership – Retained Profits, working capital, etc.
Sole Proprietorship – Sale of assets, support from family and friends for funds, bank loan,
etc.

The security required to arrange funds are collateral assets and detailed business plan.
Along with this, this section is also discussing about the effect of choice of form of business
on the availability of the funds.
In a business setting it has been believed that the choice of form of business organization
impacts the availability of funds or finance. It could be explained in detail with the use of
example of Rob. As it is known that Rob wants to purchase a shop in Melbourne but he has
limited funds. In this case, if he plans to adopt sole proprietorship then with these limited
funds, he cannot work with so he has to borrow funds from bank or any over source. This will
increase his liability and will impact availability of funds. But, if he will adopt partnership,
then partner can bring funds to invest in the business due to which Rob do not have to borrow
the funds. Besides this, the available funds will also be sufficient from his part of investment
in the business.
This is the third part of the presentation which is discussing about the accounting and non-
financial information required by Rob to purchase business and the accounting skills required
for the business.
The understanding of financial statement is required in order to interpretate clearly the
growth and failure of the business. Besides this, it is essential to learn about ratios otherwise,
Rob will not be able to judge the profitability and liquidity position of the business. In the
end, the accounting skills required is detailed analysis of the financial statements and the
knowledge of the accounting software for quick calculation and data mining process.
In the fourth part of the presentation, has presented the conclusion which says that Rob must
adopt partnership as the form of business organization in order to effectively use his available
funds and ask business partners to also invest in the business.