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Accounting and Finance

Answer :

Introduction

The proper knowledge of accounting and finance is necessary to start up a new venture. It is essential to make proper utilization of financial resources that are acquired to efficiently support the business operations. The report proposed herewith deals with the case for client of an accounting firm. The new prospective clients of accounting firm are two brothers who want to establish a new venture. The initial investment is available with them in form of money inherited through grandfather’s will. The report generates a deep understanding of various accounting and financial concepts to support their business plan. It is through the report that types of business units, financial accounting, management accounting and available sources of finance are discussed in detail.

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Different forms of business unit

The business unit can be established or registered in different forms. It is essential to select the most appropriate structure for the business planned (Lashine, 2003). The new venture can be established in majorly three forms such as sole proprietorship, partnership and public limited company. An in-depth evaluation of three kinds of businesses is presented underneath

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