Professional Documents
Culture Documents
ACCOUNTING
INFORMATION
Sole/single proprietorship - A
form of business is owned by one person;
the simplest, and the most common form
of business organization
Advantages
• The owner keeps all the profits.
• The owner makes all the decisions.
• It is easy to form and operate.
Disadvantages of sole/single
proprietorship.
The life of the business is limited
to the life of the owner. Once the
owner dies, the business will
cease to operate under the name
of the proprietor.
The amount of capital is limited
only by the wealth of the
proprietor.
Partnerships
A form of business owned by two or
more persons. The details of the
arrangement between the partners
are outlined in a written document
called articles of partnership.
Profits are divided among partners
based on their agreed sharing.
The owner is called a partner.
Advantages of a partnership
Disadvantages of a Cooperative
Limited distribution of surplus
Requires continuous education
programs for members.
The members have active and direct
participation in the business of the
cooperative.
User Example of Example of
decision to information
make needed
1. External User Existing Audited
(Investor) Investor- Financial
Wether to statements of
hold or sell the business
investments to aid in
in stocks analysing the
Potential value of the
Investor – company.
Wether or not (general
to buy shares purpose)
of stocks.
User Example of Example of
decision to information
make needed
2. External User Lender- Audited
(Lender or wether or not Financial
supplier) to extend a statements of
loan to a the business
business to aid in
Supplier- analyzing the
wether or not company’s
to extend ability to pay
credit to the its debts.
company. (general
purpose)
User Example of Example of
decision to information
make needed
3. Internal User Wether or not Analysis of
(Manager) to increase the the effects of
sale price of a sales volume
product. and sales
prices to
earnings.
(special
purpose)
User Example of Example of
decision to information
make needed
3. Internal User How much Budget report
(Manager) capital is (special
needed to purpose
manufacture a information)
new product.
Points Indicators
25 Shows eagerness and cooperation to do
the task, participation actively, do great
help to the group