ACC 200 Assignments 1. A sole proprietorship is a business owned by one person. A partnership is a business owned by two or more people . A corporation is a separate legal entity for which evidence of ownership is provided by shares of stock. Sole Proprietorship: Advantages:
1) Simple to establish
2) Owner controlled
3) Tax advantages

Disadvantages:
1) Legally liable
2) financing difficult Partnership: Advantages: 1) easy to establish 2) shared Control 3) Tax Advantages Disadvantages: Liability Corporation: Advantages: 1) Easier to transfer owndership 2) Easier to raise funds 3) No personal liability Disadvantages: Tax 2. Internal users are managers who need accounting information to plan, organize, and run business operations. The primary external users are investors and creditors: -Investors use accounting information to help them decide whether to buy, hold, or sell shares of a company's stock. -Creditors use accounting information to assess the risk of granting credit of loaning money to a business. Other groups who have indirect interest in a business are taxing authorities, customers, labor unions, and regulatory agencies. 3. Financing activities involve collecting the necessary funds to support the business. Investing activities involve acquiring the resources necessary to run the business. Operating activities involve putting the resources of the business into action to generate a profit. 4. An income statement presents the revenues and expenses of a company for a specific period of time. A retained earnings statement summarizes the changes in retained earnings that have occured for a specific period of itme. A balance sheet reports the assets, liabilities, and stockholders' equity of a business at a specific date A statement of