[Type the company name]

24/6/2012
Business Administration
Managing financial resources and decision: assignment not be spoken

Introduction:
If you can read a nutrition label box or a football score, you can learn to read basic financial statements in order to make the right investments. If you can follow a recipe or apply for a loan, you can learn basic accounting. Financial statements aren’t difficult and they aren’t rocket science.
Before understanding the four types of financial statements, you must first understand the three types of business entities, there are three forms of business entities, and they are: sole trader, partnership, and corporation. Each form has its pros and cons in complexity, and how its taxed, also, some business forms have subclasses, like the s corporation, c corporation, and professional corporation, so all that means choosing the right business form is no easy task, considerations must be taken, you must learn how to select, plan, and organize your chosen business form so that its perfect for you.
The sole trader:
This is the simplest business form you can operate at; the sole proprietorship is not a legal entity. It basically refers to an average person who owns the whole business and is personally responsible for all its debts and receives all the profit. A sole trader can handle business under the name of the owner or it can operate under a fictitious name, such as rasheeda’s beauty shop, but the fictitious name is simply a trade name, therefore, it does not create a legal entity that is separate from the sole trade owner.
The sole traders is a popular business form mainly due to its simplicity, ease of setup, and somewhat little cost, as a sole trader you only need to register your name and secure local licenses, and you