Assignment 1: You Are an
Entrepreneur!
Due Week 6 and worth 280 points
Student life does not generally afford a great deal of free time to pursue your personal interests; however, at one point, you may have considered turning a personal interest or hobby into an official enterprise. Today, you have finally decided to turn that hobby into a business but have realized that you need start-up capital from a lender or investor.
To obtain funding, you need to convince a lender / investor that your business is more than a hobby. You need to demonstrate that you have a firm grasp of your business, the accounting practices that impact your business, the controls needed to safeguard assets, and which accounting system will produce accurate and relevant financial information.
Write a six to eight (6-8) page business plan in which you:
Due Week 6 and worth 280 points
Student life does not generally afford a great deal of free time to pursue your personal interests; however, at one point, you may have considered turning a personal interest or hobby into an official enterprise. Today, you have finally decided to turn that hobby into a business but have realized that you need start-up capital from a lender or investor.
To obtain funding, you need to convince a lender / investor that your business is more than a hobby. You need to demonstrate that you have a firm grasp of your business, the accounting practices that impact your business, the controls needed to safeguard assets, and which accounting system will produce accurate and relevant financial information.
Write a six to eight (6-8) page business plan in which you:
1. Describe the type of
business you have created including:
a.
The
product or service, and general staffing plan. Provide a rationale for your
plan.
b.
The
form of your business and the benefits it offers your particular business,
c.
A
chart of accounts specific to your business, including a rationale as to the
selection of each account. (Note: The chart of accounts is a blueprint of your
business for the lender/investor. It should report the expected resources that
you will consume in your business (assets), the sources of those resources
(liabilities and equity), the sources of revenue, and expenditures that you
expect to incur to earn those revenues. You may build a detailed chart that includes
business units, divisions, product lines, etc.)
2. Based on the form of your
business, analyze whether or not you will be required to use Generally Accepted
Accounting Principles (GAAP) or International Financial Reporting Standards
(IFRS) accounting methods and how the IFRS / GAAP convergence will impact your
business. Suggest how you will incorporate any changes into your books and
records. (Note: You need to demonstrate to the lender/investor that you have
recognized possible changes to GAAP that may impact the accounting and
reporting of your accounting events.)
3. Prepare a pro forma balance
sheet and income statement providing the assumptions made and support the
valuations assigned.
4. Considering the value of
assets (assigned per your balance sheet) used within your business, recommend
two (2) specific internal controls that you will implement to protect your
company’s assets and resources, justifying how each will provide assurances to
management. (NOTE: Safeguarding assets and protecting personal data are
paramount to ensuring the viability of a business. Demonstrate to the
lender/investor that your assets will be safeguarded and customer information
(if applicable) will be protected.)
5. Based on the internal
control recommendations that you made, suggest how you will implement each
within your business environment, indicating how challenges or resistances will
be overcome.
6. Evaluate the impact of the
regulatory environment, including the Sarbanes-Oxley Act and other regulatory
requirements, on your business venture, giving considering to how you intend to
comply with the requirements and the general impact to decision making within
your business.
7. Use at least four (4)
quality academic resources in this assignment. Note: Wikipedia and other
Websites do not qualify as academic resources.
Your assignment must follow these formatting requirements:
·
Be
typed, double spaced, using Times New Roman font (size 12), with one-inch
margins on all sides; citations and references must follow APA or
school-specific format. Check with your professor for any additional
instructions.
·
Include
a cover page containing the title of the assignment, the student’s name, the
professor’s name, the course title, and the date. The cover page and the
reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
·
Examine
accounting principles and concepts used in businesses.
·
Assess
appropriate internal controls, regulatory requirements according to the
Sarbanes-Oxley Act, and fraud prevention and detection.
·
Use
technology and information resources to research issues in financial
accounting.
Write
clearly and concisely about financial accounting using proper writing mechanics
0 comments:
Post a Comment