Acf 1200 Accounting For Managers Notes

ACF1200 NOTES 1 ACF1200 NOTESACF1200 NOTES 2 W E E K 1 : B U S I N E S S S T RU C T U R E S Four basic business structures: sole trader, partnership, company and trust. Structures have different features that make them attractive to individuals intending to go into business. The aim of the business will affect which business structure is best. Business structures will affect: 1. The role of the owner(s) 2. The extent of the liability of the owners(s) 3. How finance can be raised (initially and for expansion) 4. How tax is determined ACCO UNTING ENTITY CONCEPT All business finances must be kept separate from the finances of the owners at all times. Separate bank accounts, record of assets and liabilities, record of transactions, record of any personal money used to start the business. S O L E T R A D E R An individual who controls and manages a business. Business is not a separate legal entity and the owner is fully liable for all debts. Common examples include most trades; for example, plumbers, electricians, hairdressers and carpenters. Needs to complete the general registration requirements applying to all new businesses,