Essay Topic # 2
|Essay is due in the week beginning 8th September in your tutorials and handed to your tutor. |
In a business, the main activities, which require your knowledge of financial accounting, are:
1. Financing
2. Investing
3. Reporting and Measurement
4. Analysis and Interpretation
Requirements:
Imagine that you are starting a business of your own.
a. Discuss the legal structure you would choose for your business.
b. Using your knowledge of financial accounting, discuss how you will undertake the above 4 activities.
c. Provide specific examples, amounts in $, for financing, investing etc.
d. Write down what measurements and reporting you would follow and;
e. What type of analysis and interpretation would you undertake to judge whether your business is doing well.
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Plan
Essay is required to have 750-1000 words.
Examples or diagrams are not counted in the total word limit.
Introduction:
What are you intending to discuss in the essay? Keep this very brief.
Body:
a. Choose the type of business you would like to set up; company? Partnership? Sole proprietorship? Name your new business.
b. Discuss, using the 4 activities, how each will impact on your business. Depending on the type you choose, the requirements will be different. For example, company will have different financing needs (and
potential) compared to a partnership by raising funds through shares.
c. Explain each activity by providing some numerical examples. For example, ‘we may need $1m to buy assets’.
d. You can use any measurements; such as horizontal, trend or vertical analysis or Ratios. Do you need to show a P/L? B/S? What are the government requirements?
(Briefly explain; can...