Business Organization Types Infographic|My homework helper
Posted: February 16th, 2023
Starting a business requires planning, projecting what you want for your business today, and determining what your business plan is for the future. A successful business must plan for future growth, which requires making choices today about the type of business to be created. Understanding the different business types, as well as the advantages and disadvantages of each, will assist in making the decision.
In addition, you must be familiar with the key roles involved in each type of business, as well as how they utilize financial information to make operational decisions. The first step is researching the 3 types of business organizations. This research process will allow you the opportunity to explain the fundamental concepts of accounting in the health care environment and showcase your growing accounting skills.
Preparing for the Assignment:
As head of your department, you are responsible for disseminating information to your staff. You have decided to create an infographic handout about the 3 types of business organizations to help them learn about the 3 types of business organizations, understand the key users’ roles, and recognize how the different types of business organizations utilize financial information in the day-to-day business operations.
Assignment Directions:
Use the information from Ch. 1, “Introduction to Financial Statements,” of Accounting to create an infographic in which you:
- Describe the following 3 types of business organizations: sole proprietorships, partnerships, and corporations.
- Describe 1 advantage and disadvantage for each of the 3 types of business organizations.
- Describe the key users (i.e., sole proprietor, partnership, board of directors, CEO, COO, CFO, managers, etc.) of financial information.
- Explain the types of day-to-day business decisions made by using financial statements.
Format any references used according to APA guidelines.
Submit your assignment.
Resources
- Infographic page on the Microsoft® website
SOLUTION
The three main types of business organizations are:
- Sole Proprietorship: A sole proprietorship is an unincorporated business owned and operated by one person. The owner has unlimited liability for all debts and obligations of the business, and all profits are taxed as personal income. This type of business is relatively easy to start and operate, but it can be difficult to raise capital and the owner is solely responsible for all aspects of the business.
- Partnership: A partnership is a business owned and operated by two or more people. Each partner is responsible for the debts and obligations of the business, and all profits are taxed as personal income. Partnerships can be general or limited, and they can be formed for a specific period of time or for a specific project. This type of business is relatively easy to start and operate, but it can be difficult to manage and disagreements between partners can arise.
- Corporation: A corporation is a legal entity separate from its owners. It is owned by shareholders who have limited liability for the debts and obligations of the business, and profits are taxed as corporate income. Corporations can be either publicly traded or privately held, and they can issue stocks and bonds to raise capital. This type of business is more complex to start and operate, but it offers the advantage of limited liability and the ability to raise significant amounts of capital.
In the healthcare environment, understanding the fundamental concepts of accounting is crucial to making informed operational decisions. Financial information is used to track revenues and expenses, manage cash flow, and make
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