New Due In 1 Hour: Minimum 70 Words Each With References

New Due In1 Hour Minimum70 Words Each With Referenceforms Of Busines

What are the three forms of business organization and their advantages and disadvantages and if you were to form your own business which organizational form would you choose and why? uses of accounting info 2. Describe the way manager's use accounting information to create value in organizations. How do you use it in your personal life?

Paper For Above instruction

The three primary forms of business organization are sole proprietorships, partnerships, and corporations. Each structure offers distinct advantages and disadvantages that influence entrepreneurs' decisions depending on their specific needs and goals.

Firstly, sole proprietorships are the simplest form of business, characterized by complete control by an individual. The advantages include ease of formation, straightforward taxation (business income is reported on the owner’s personal tax return), and minimal regulatory requirements. However, disadvantages encompass unlimited personal liability, limited ability to raise capital, and the business's continuation is tied directly to the owner, making succession planning difficult (Scarborough & Cornwall, 2014).

Secondly, partnerships involve two or more individuals sharing ownership and responsibilities. Advantages include pooled resources, shared responsibility, and easier access to capital. Disadvantages include joint and individual liability, potential for conflicts among partners, and shared profits (Brigham & Houston, 2019). Partnerships can be either general or limited, with different liability implications.

Thirdly, corporations are legal entities separate from their owners, offering limited liability, easier access to capital markets, and perpetual existence. The disadvantages are increased regulatory complexity, double taxation of corporate profits, and potential conflicts between shareholders and management (Ross, Westerfield, & Jaffe, 2018). Selecting the appropriate organizational form depends on factors like size, scope, funding needs, and liability concerns. For example, a start-up aiming for rapid growth might prefer incorporating to attract investment, whereas a small local enterprise might opt for a sole proprietorship.

If I were to start my own business, I would choose a corporation. The limited liability protection would safeguard my personal assets from business debts and legal actions. Additionally, the ability to raise capital through issuing stock would facilitate expansion and growth. Moreover, the perpetual succession of a corporation ensures business continuity regardless of ownership changes (Kieso, Weygandt, & Warfield, 2019). The formal structure and transparency required by corporate governance also promote accountability and operational efficiency.

Regarding the use of accounting information, managers employ financial data to make strategic decisions that create organizational value. This includes budgeting, financial analysis, performance evaluation, and resource allocation. Accurate accounting information helps managers identify profitable domains, control expenses, and plan for future growth (Garrison, Noreen, & Brewer, 2018). For example, managerial accounting enables setting performance benchmarks and measuring progress, ensuring efficient operation.

On a personal level, I utilize accounting principles in everyday life by maintaining budgets, tracking expenses, and setting financial goals. For instance, I analyze my monthly income versus expenditures to identify savings opportunities and prepare for future investments. Understanding basic accounting concepts helps me make informed decisions about employment, investments, and personal financial planning, ensuring I am better prepared for financial stability and growth.

References

• Brigham, E. F., & Houston, J. F. (2019). Fundamentals of Financial Management (15th ed.). Cengage Learning.
• Garrison, R. H., Noreen, E. W., & Brewer, P. C. (2018). Managerial Accounting (16th ed.). McGraw-Hill Education.
• Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2019). Intermediate Accounting (16th ed.). Wiley.
• Ross, S. A., Westerfield, R. W., & Jaffe, J. (2018). Corporate Finance (12th ed.). McGraw-Hill Education.
• Scarborough, N. M., & Cornwall, J. R. (2014). Essentials of Entrepreneurship and Small Business Management (8th ed.). Pearson.