Question

Describe a relationship you have with a service business. Provide specific examples.

2. Describe a relationship you have with a merchandising business. Be specific - discuss a real-world example.

3. Describe a relationship you have with a manufacturing business. Again, provide specifics.

4. Discuss the similarities and differences between proprietorships, partnerships, corporations, and LLC's. Provide examples that are unique from your classmates in your discussion.

5. Why do businesses need to follow accounting principles? What is accounting's role and what are some of its primary purposes? What is accounting often called, and why is it often called that? What accounting principles have you observed being followed at your current or past employers? Which of these activities directly involved you or work that you have done?

Answer 1

1.

• Communicate frequently. ...
• Offer customer rewards. ...
• Hold special events. ...
• Build two-way communication. ...
• Enhance your customer service. ...
• Launch multicultural programs. ...
• Visit the trenches.

...................................................................................................................................................

2.

Merchandising is both an activity and a strategy that contributes to the sale of goods and services by stimulating interest or otherwise enticing customers to make a purchase (examples include promotional deals and discounting methods). Merchandising strategy involves the tactics (or business processes) that contribute to the sale of goods and services to the customer for profit. Tactics within the overall retail strategy include the variety of merchandise available for sale in store or online and how the retailer advertises and displays that merchandise to stimulate interest and create a customer experience. A sound retail strategy involves developing a desirable retail merchandise mix of products that add unique customer value.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

3.

The manufacturing industry has witnessed a dramatic transformation over the years. Previously, a manufacturing company responded to whatever a customer required. It has now evolved and become more customer centric. Instead of waiting for the customers to tell them what they need, companies are now forecasting what will be in demand in the coming months and make use of techniques like lean production and automation to meet that demand.

1. Accurate Demand Forecasting

2. Improve Product QualitY

3. Intelligent Supply Chain

4. Enrich Customer Relationships

5. Win More Business

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

4. A) The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts.

B) PARTNERSHIP FIRM MEANS business will be carried by more than one person together by introducing capital and agreed to share profits and losses in agreed ratio. the relation between persons who have agreed to share the profits of business carried on by all or any of them acting for all”. ... The name under which partnership business is carried on is called 'Firm Name'.

C) A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities. It therefore can exhibit elements of partnerships and corporations. In an LLP, each partner is not responsible or liable for another partner's misconduct or negligence.

D) CORPORATION means a large company or group of companies authorized to act as a single entity and recognized as such in law.in this business company issue share to genaral public to purchase

MAIN DIFFERANCE between solepropertor , firm , LLP and corporation is liability

in case of sole Sole proprietors and partners in a partnership business have unlimited liability for all debts and liabilities that occur while operating the business. This means partners and sole proprietors may lose their homes, cars and other personal assets, if the company's assets are insufficient to cover the company's debts.

Corporations provide owners of the company with limited liability protection against business losses and obligations. This means owners of a corporation will not lose their home, if the company goes bankrupt. Owners of a corporation are liable for company debts and obligations up to the extent of their investment in the company.

LLP also liability of partner is limited to the extent of his share

.>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

5. Accounting not only records financial transactions and conveys the financial position of a business enterprise; it also analyses and reports the information in documents called “financial statements.”

Recording every financial transaction is important to a business organisation and its creditors and investors. Accounting uses a formalised and regulated system that follows standardised principles and procedures.

which supplies information to:

• Managers who guide the company.
• Investors who want to know how the business is doing.
• Analysts and brokerage firms dealing with the company’s stock.
• The government, which decides how much tax should be collected from the company.

Accounting Principles

Obviously, if each business organisation conveys its information in its own way, we will have a babel of unusable financial data.

Personal systems of accounting may have worked in the days when most companies were owned by sole proprietors or partners, but they do not anymore, in this era of joint stock companies.

These companies have thousands of stakeholders who have invested millions, and they need a uniform, standardised system of accounting by which companies can be compared on the basis of their performance and value.

Therefore, accounting principles based on certain concepts, convention, and tradition have been evolved by accounting authorities and regulators and are followed internationally.

1. Business entity concept: A business and its owner should be treated separately as far as their financial transactions are concerned.
2. Money measurement concept: Only business transactions that can be expressed in terms of money are recorded in accounting, though records of other types of transactions may be kept separately.
3. Dual aspect concept: For every credit, a corresponding debit is made. The recording of a transaction is complete only with this dual aspect.
4. Going concern concept: In accounting, a business is expected to continue for a fairly long time and carry out its commitments and obligations. This assumes that the business will not be forced to stop functioning and liquidate its assets at “fire-sale” prices.
5. Cost concept: The fixed assets of a business are recorded on the basis of their original cost in the first year of accounting. Subsequently, these assets are recorded minus depreciation. No rise or fall in market price is taken into account. The concept applies only to fixed assets.
6. Accounting year concept: Each business chooses a specific time period to complete a cycle of the accounting process—for example, monthly, quarterly, or annually—as per a fiscal or a calendar year.
7. Matching concept: This principle dictates that for every entry of revenue recorded in a given accounting period, an equal expense entry has to be recorded for correctly calculating profit or loss in a given period.
8. Realisation concept: According to this concept, profit is recognised only when it is earned. An advance or fee paid is not considered a profit until the goods or services have been delivered to the buyer.

9. Conservatism is the convention by which, when two values of a transaction are available, the lower-value transaction is recorded. By this convention, profit should never be overestimated, and there should always be a provision for losses.

   Consistency prescribes the use of the same accounting principles from one period of an accounting cycle to the next, so that the same standards are applied to calculate profit and loss.

   Materiality means that all material facts should be recorded in accounting. Accountants should record important data and leave out insignificant information.

   Full disclosure entails the revelation of all information, both favourable and detrimental to a business enterprise, and which are of material value to creditors and debtors.