ACC 557 Assignment 2 You Are an Entrepreneur!
ACC 557 Assignment 2 You Are an Entrepreneur! fin571
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Date Created: 11/11/15
Business Development 1 Running Head: BUSINESS DEVELOPMENT Enterpreneurship Business Development 2 Introduction There are certain people around the world who look forward to convert their hobbies into the businesses. In the present paper, discussion shall be made regarding one such organization in which, the people are looking forward to convert their hobbies into businesses. The individuals in the organization will look forward to make sure that, they carry out their activities in such a manner that, they earn profits and in addition to this, they also work towards compliance with the necessary rules and regulations without any kind of problem or issue for them. In the present paper, discussion shall be made regarding the organization and various key things about the same. Business Type In the present situation, the business form selected by the people involved is a restaurant business. The individuals involved in the business had the hobby of cooking food when they were students. They looked forward to make sure that, they turn this thing into a business. Due to this, they have selected the business of opening up of a restaurant in the present situation. In the restaurant, the individuals will be selling the food products of various categories (Vay & Devay, 2006). The products will include fast food for the customers as well as some form of Indian food as there are various Indian people living in the area in which, the organization will be carrying out its activities. Staffing Plan If an organization has to make sure that, it works in a proper manner towards the achievement of its goals. The organization has to perform various kinds of activities for achievement of its goals in an appropriate manner. The activities of the organization include Business Development 3 financing activities, human resource management activities, marketing activities and various other kinds of activities. The organization shall make sure that, it has appropriate employees available to it regarding the performance of activities regarding the finances of the organization. The employees will work for the purpose of making sure that, the organization prepares the financial statements and makes the compliance with the accounting standards framed by the government for the purpose of making sure that, the organizations disclose all the key things to the shareholders. The employees in the organization will also be able to make sure that, the organization avoids any kind of penalty or trouble which could arise from it at any point of time in the future (Bevans, 2006).Another activity for the organization is the human resource management activity. For the organization, it is very important to provide an appropriate level of training to the employees. The first work in the organization regarding the employees will be the selection of the employees. If an organization will fail to select the employees in a proper manner manner, it shall be difficult for them to make sure that, it gives effect to its activities in a proper manner. The human resource management department of the organization plays a very important role regarding the selection of the employees, giving them training and ensuring that, they meet the organizational standards and accomplish the goals of the employees. It is also likely that, the employees in the organization could end up leaving the organization due to some reason. Therefore, it is also important for the organization to make sure that, it reduces the employee turnover. The employee turnover within the workplace will be reduced by way of appropriate level of relationship between the employees and the organization. The employees working in the human resource management team will work in Business Development 4 such a manner that, the relationship between the employees and the organization is improved so that, better level of results are available to the organization in the future. The marketing activities of the organization are very important for its growth and prosperity. An organization has to make sure that, it performs its marketing related activities in such a manner that, it achieves the success to the highest possible level. In addition to this, it is also important for the organization to ensure that, its sales and the profitability keeps on increasing. For this purpose, the organization needs good quality marketing managers available with it. The organization will have the ability to attract the customers and to retain them with the help of high level marketing practices available with them. In this way, it can be said that, the marketing department of the organization will definitely be of high need for the organization and the organization should have proper investment in time in making this department. Form of Business There are various kinds of business forms which could have been selected by the organization in the present situation. The form of business taken into account for the present paper is partnership form of business. In this situation, there are two individuals who are involved in the business activities, therefore, it will be most appropriate for the organization to have the partnership form of business in the present situation. There are various advantages of making use of this form of business for the organization presently. The first advantage of partnership form of business structure is that, this form of business structure will be that, this form of business structure is established in a very quick period of time. There are not a lot of legal compliances required to be performed in this form of business structure. The partnership form of business is also able to have an appropriate Business Development 5 level of capital available with it. The capital in this form of business is provided by two partners which is better in comparison to the situation when, the capital is provided only by one organization. Chart of Accounts In the present situation, various accounts will be prepared by the organization. The accounts will include the depreciation account, income and expenditure account, balance sheet of the organization, the capital account of the partners of the organization and the ratios for and every expense for the organization. In the capital account of the partnership firm, the details regarding the profits credit to the partners, remuneration paid to them, the additions to their capital and the reduction in their capital account is noted down. In this way, the capital account shows all the changes in the capital of the partners of the organization. The second account is the depreciation account. This particular account provides information in relation to depreciation charged on a particular fixed asset of the organization. The depreciation is a non cash expense and it just reduces the value of the asset of the organization and no cash is reduced from the account of the organization in relation to this situation. The profit and loss account is another very important account. This account shows the information regarding all the expenses incurred by the organization and the incomes generated by it. The organization will also prepare the balance sheet. The balance sheet will help the organization to find out various important things. The balance sheet provides the information about liabilities of the organization, the equity capital of the organization and the assets available to the organization. All these accounts will help the organization to make sure that, it will disclose the correct picture of its financial statements in a proper manner in the future. Applicability of GAAP Business Development 6 In the present situation, the business form selected by the organization is partnership form of business. Generally accepted accounting standards and the International Financial Reporting standards are applicable only for the corporations therefore, these standards will not apply to the partnership firm as in the present situation. Therefore, the business in the present situation will not be required to make sure that, it complies with the above mentioned standards, but, it would be necessary for the partnership firm to make sure that, it prepares the reports in such a manner that, the stakeholders get appropriate information about the financial position of the firm. Performa Balance Sheet Liabilities Amount Assets Amount Partner's Capital 124500 Building 144000 Loans 100000 Equipments 90000 Payables 56000 Receivables 46500 Total 280500 Total 280500 In the above mentioned Performa balance sheet, the capital of the partners is taken as $124500. The organization has a building and equipments for making sure that, it provides the food products to the consumers (Siegel & Shim, 2008). The owners have also taken loan of $100000 in order to make sure that, they carry out their activities properly. There are certain levels of receivables as well as payables for the organization also in the present situation. Performa Income Statement Particulars Amount Particulars Amount To Salary 36000 By Revenue 180000 To Electricity 24000 To Training 24000 To Depreciation 36000 To Net Profit 60000 Business Development 7 Total 180000 Total 180000 In relation to the Performa income statement, it has the estimated that, the organization will earn revenue up to the level of $180000. The level of expense incurred by the organization will be $120000 and the organization will also incur expenses on salary, electricity, training of employees and depreciation. After deducting the expenses, the organization expects to earn a net profit of $60000. Safeguarding the Assets For the organization, it is very important to make sure that, it safeguards its assets to the highest possible level. The assets of the organization are currently at the level of $234000. For the purpose of safeguarding its assets, the organization needs to make sure that, it gets the insurance of the assets done. With the help of the insurance of the assets, the organization will be able to make sure that, it is able to protect itself from the loss caused by it in the situation of fire or destruction of its assets. The first internal control procedure will be regular maintenance of the assets and the second internal control measure will be making a reservation for replacement of the assets. Impact of Regulatory Environment In the present situation, the organization needs to make sure that, it does not create any kind of problem or trouble for it regarding various kinds of non compliances. The non compliances within the organization will result in a reduction in the goodwill of the organization (Dransfield, 2000).The organization should always make sure that, it works in such a manner that, it avoids all the problems and trouble for it and it also ensures that, the stakeholders are not cheated and are provided true information about the financial position of the organization. Conclusion Business Development 8 The present paper was in relation to the organization which has been established by two individuals who had cooking as their hobby. Regarding this thing, it has been provided that, the organization has to consider various things to perform in a better manner towards the accomplishment of its activities. It should consider the staffing plan very seriously because proper employees will help organization to accomplish its objectives. The organization is engaged in restaurant business and it is a partnership firm. The GAAP and IFRS are not applicable to it. In addition to this, the organization should work in such a manner that, it has the appropriate level of safeguarding in relation to its assets. The organization has to comply with the regulatory environment to the highest possible level so that, its image stays intact. Business Development 9 References Bevans, R.N. (2006). Business Organizations And Corporate Law. Cengage Learning. Dransfield, R. (2000). Human Resource Management. Heinemann. rd Siegel, G.J. & Shim, K.J. (2008). Financial Management. (3 ed.). Barron’s Educational Series. Vay, D.L.D. & Devay, D. (2006). The Effectiveness of the SarbanesOxley Act of 2002 in Preventing And Detecting Fraud in Financial Statements. UniversalPublishers.
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