sole proprietorship

Second only to the sole proprietorship, the partnership is among the oldest of business entities to develop. By the time of the development and implementation of the English Common Law in the 16th Century, the law of business partnerships was already highly developed. This was the case despite the fact that a majority of partnership business owners were illiterate.

In businesses that involve numerous members of the same family, the preferred business choice of conduct is the partnership. What advantages may occur for the family members by conducting business in this form? Can you think of any potential problems that may occur when family members conduct business in the form of a partnership? Would the other business entities of sole proprietorship or incorporation fare any better? Explain your reasons.

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Acc 205

Current Liability

What is a current liability?  From the perspective of a user of financial statements, why do you believe current liabilities are separated from long-term liabilities?  Based on your current experience as well as any additional research you may have done, provide two examples of situations where businesses collect monies from customers and employees and report these amounts as a current liability.

 Client Recommendations

A client comes to you thinking about starting a consulting business.  Your client is specifically interested in what type of entity should be created for this new business.  Based on your readings, or any additional research you may have done, discuss the advantages and disadvantages of the following: sole proprietorship, partnership, and corporation.  Based on these advantages and disadvantages, provide a clear recommendation to your client.