Verified Document

Organization Model For Accounting Company A Group

Organization Model for Accounting Company A group of accountants who want to start their own accounting company need to make several considerations including having a clear vision of the firm's purpose and comprehensive understanding of the requirements of an entrepreneur in this field. In addition to these factors, the group of accountants also needs to examine and identify the most suitable organizational form of business for the accounting company. The need for identifying the most appropriate organizational form of business is fueled by the fact that finance and accounting companies usually provide a range of services to clients, which generates the need for effective organizational form of business to ensure coordination of the various services. Therefore, the groups of accountants seeking to start their own accounting business must decide and identify the suitable form of business organization.

Generally, there are various kinds of organizational forms of business with varying strengths and weaknesses. These differences contribute to the difference in the effectiveness of the specific organizational form of business in various settings and disciplines including accounting. Given that every organizational business form has varying legal and tax implications, it is important to conduct a detailed research of these differences before...

The first organizational form of business is a sole proprietorship in which the owner has all the liabilities for finances and operations of the business (Phillips, n.d.). In this form of business, the owner assumes risk against his personal assets in case of any financial challenges since his/her personal property is attached to the business. The strengths of this business model include simplicity of formation and control of operations. However, the disadvantages of a sole proprietorship include unlimited personal and professional liabilities, funding difficulties, and increased vulnerability of collapse.
The second type of organizational form of business is a partnership, which has at least two owners who share equal control in the operations and affairs of the business. However, a partnership agreement may not provide equal control to the partners or may establish the structure of a limited partnership. The main strength of this form of business organization is that the operating partners share the financial and legal risks of the business since these risks are not attached to an individual's personal assets. The weaknesses of a partnership include a more complicated decision making process and personal liability for business' debts.

The other type of business…

Sources used in this document:
References

Hamel, G. (n.d.). Strengths and Weaknesses of a Partnership. Retrieved March 21, 2015, from http://www.ehow.com/info_7736835_strengths-weaknesses-partnership.html

Phillips, C. (n.d.). The Three Types of Business Entities in Accounting. Retrieved March 21,

2015, from http://smallbusiness.chron.com/three-types-business-entities-accounting-10242.html
Cite this Document:
Copy Bibliography Citation

Related Documents

Accounting and Intrusion Detection in a Report
Words: 6872 Length: 25 Document Type: Term Paper

Accounting and Intrusion Detection In a report issued by Paladin Technologies, Inc., entitled: "Security Metrics: Providing Cost Justification for Security Projects," 273 organizations were surveyed on the topic of security. The report illustrates in quantifiable terms the depth and reach of intrusion detection on the financial viability of the organization. The combined reported losses from the firms surveyed totaled $265.6 million in 1999. The highest loss categories were reported as follows: Type

Organization Dynamics & Development It
Words: 7722 Length: 28 Document Type: Term Paper

Despite their supposed differences, all of the foregoing organizational management techniques and approaches share some common themes involving getting a better handle of what is actually being done in companies and how better to manage these things. Unfortunately, another common theme these management approaches share is the inappropriate or misapplication of these approaches by managers who either do not understand how they work or by rabid managers who insist

Organizational Change and the Consequences
Words: 2029 Length: 7 Document Type: Essay

This means training that is focused on increasing the knowledge economy of the transforming firm rather than in simply standardizing processes. According to the text by Chapman (2009), this may even call for a change in the linguistic approach to this process. Chapman advises that "training implies putting skills into people, when actually we should be developing people from the inside out, beyond skills, ie., facilitating learning. So focus

Organization Behavior and Theory
Words: 1709 Length: 5 Document Type: Research Paper

Organizational culture theory and the role and impact of both formal and informal groups on the functioning of modern day organizations. Organizational culture is the way organizations conducts its business transactions. It also refers to the different perspectives that a company sees things. An organization builds its own organizational culture through structure, history and the traditions of the company (Shafritz 2005). Theories of organizational culture suggest that culture gives an organization

Accounting Ratios the Financial Statements
Words: 2089 Length: 5 Document Type: Term Paper

An unaware analyst may think the second company to be better but in reality its low encouraging level is due to the fact that it is unable to secure additional funding. The companies may possess different capital structures and to attempt comparison of performance when one is all equity financed and another is a geared company may not suffice for a good analysis. The chosen application of government incentives

Organizational Culture Change Is Noted by Kotler
Words: 1226 Length: 4 Document Type: Essay

Organizational culture change is noted by Kotler et al. .(1996) noted to be a common aspect of every organization. This is due to the fact that change is the only thing that can be said to be constant in any given organization. Organizational change is often met with a lot of resistance. This resistance can undermine the operations and the performance of any given organization. Kudler Fine Foods Virtual Organization

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now