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eg)Doctors, Lawyer
2)Trading - Buy in products and resell to customers
eg)Supermarkets
3)Manufacturing - Manufacture Products and sells to customer(wholesaler)
eg)Samsung
1)Sole proprietorship
-Single owner
-Each proprietorship is distinct from its proprietor
2)Partnership
-2 or more individual together as co-owners
-Distinct and separate from the personal affair of each partner
3)Company
-Owned by shareholders
-Its a legal entity
-Conduct the business in its own name
-Distinct and separate from its owners
Book keeping - involves only the recording of business transactions
Accounting- Includes recording, summarising, interpreting, analysing, and reporting of financial information.
Internal users:
1) Employees - To decide whether to continue working for the business
2) Owners -Furnish the capital
3) Managers - Help them in evaluating current operations
External users
1) Customers - To decide whether to buy after evaluating whether the business can provide after sales support.
2) Government - To decided how much tax to collect
3) Investors - To decide whether if they should invest in the business
4) Creditors - To business whether to grant business loans
5) Suppliers - To decided whether to sell to business on credit
CONCEPTS
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