Continuing Cookie Chronicle Natalie Koebel spent much of her childhood learning the art of cookie-making from h grandmother. They spent many happy hours mastering every type of cookie imaginable and lat devised new recipes that were both healthy and delicious. Now at the start of her second year college, Natalie is investigating possibilities for starting her own business as part of t entrepreneurship program in which she is enrolled.
A long-time friend insists that Natalie has to include cookies in her business plan. After a series brainstorming sessions, Natalie settles on the idea of operating a cookie-making school. She will sta on a part-time basis and offer her services in people's homes. Now that she has started thinking abo it, the possibilities seem endless. During the fall, she will concentrate on holiday cookies. She will off group sessions (which will probably be more entertainment than education) and individual lessor Natalie also decides to include children in her target market. The first difficult decision is coming with the perfect name for her business. She settles on "Cookie Creations," and then moves on more important issues.
Instructions:
A) What form of business organization-proprietorship, partnership, or corporation- do y recommend that Natalie use for her business? Discuss the benefits and weaknesses of ea form that Natalie might consider.
B) Will Natalie need accounting information? If yes, what information will she need and why? How often will she need this information?
C) Identify specific asset, liability, revenue, and expense accounts that Cookie Creations likely use to record its business transactions.
D) Should Natalie open a separate bank account for the business? Why or why not?
E) Natalie expects she will have to use her car to drive to people's homes and to pick supplies, but she also needs to use her car for personal reasons. She recalls from her f year accounting course something about keeping business and personal assets separa She wonders what she should do for accounting purposes. What do you recommend?