Develop a 1,050-word evaluation describing business structure and financial statements.

The purpose of this assignment is to help students gain a better understanding of the importance of the appropriate legal business categories and financial statements as a key management tool for making decisions.

Assignment Steps

Develop a 1,050-word evaluation describing business structure and financial statements, including the following:

• Identify and describe the legal categories of a business organization contrasting tax-related advantages and disadvantages.
• Next, using your entrepreneur skills, consider starting your own business. What business structure would you choose and why?
• Discuss financial statements for the chosen business structure, then explain with specific examples from the University Library, how these would help you make decisions about your business.

Cite a minimum of two peer-reviewed references.

Answer preview

Deciding to open a business must start by understanding the different forms of business organization in order to choose the most appropriate. There are three main categories of business organizations which are corporations, partnerships, and sole proprietorship and each form of business organization have its advantages as well as disadvantages. The choice of the form of business organization must consider tax and legal issues and also the financial concerns (Hisrich and Ramadani, 2017). In making better and informed business decisions, it is important to use the information recorded in the financial statements. The major financial statements used are the income statement, balance sheet, and the cash flow statement.

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