Business Accounting

  two or more paragraph, MLA Style

Business types are generally classified as either service, merchandising, or manufacturing entities. Oftentimes, however, a business may be involved in more than one endeavor such as providing a service and selling a product at the same time. As far as ownership, a business may be owned by one individual (proprietorship), by two or more persons (partnership), or by many investors (corporation).

1. Assume      that you want to start a business; what would it be? Describe the type of      business you would like to start. Would it be classified as a service, a      merchandiser, a manufacturer, or a hybrid (more than one) type of      business? Conduct research as needed and explain your classification. What      form of ownership would you prefer? Proprietorship, partnership, or      corporation? If a corporation, what type of corporation? What factors      would you consider in making your determination? Research the benefits and      potential drawbacks of your chosen form of ownership beyond the      information.
2. Additionally,      list at least 3 asset accounts and 3 liabilities accounts you would expect      your new business to have.
3. Lastly,      assume you were to invest $50,000 into your new business venture. How      would your ownership interest be presented in the equity section of the      business balance sheet, specifically?