Acc 561 - Small Business Analysis Paper

Small Business Analysis Paper

Omini Akpang

ACC/561

May 24, 2016

Tom Myers

Small Business Analysis

Operating a small business requires the consideration of certain factors; paramount among these is the type of business organization in which you will operate under. This will take into account the advantages and disadvantages of operating such a venture. In this paper, I will operate a sole proprietorship.  Sole proprietorship is also known as a one man business. Sole proprietorship will be discussed in relation to other types of business organizations. The discussion will include a comparison of financial statements, taxation, and accounting and how these affect business. This paper will also discuss the legal underpinnings involved in operating this type of business organization. My organization will be a fish farm known as Omini Akpang Fishery. The fish farm will be small scale fish farm in which fish will be raised in artificial tanks of mainly catfish and tilapia.

Omini Akpang Fishery

A sole proprietorship operates under the owner’s name. The name of my business venture will be Omini Akpang Fishery. Whether it is large-scale commercial aquaculture or small-scale try-by-doing fish farming, fish farming requires a sound business plan. For any business to succeed, time must be invested in it alongside close monitoring, proper record and book-keeping. Omini Akpang fishery will deliver high quality fish grown in sanitary conditions. The fish will be free of antibiotics and grown in a natural way. Water quality management will be our priority as this will provide the optimum conditions which prevent stress and disease in fish.  According to Kimmel, Weygandt, and Kieso (2011) a sole proprietorship is not separate from its owner. This implies that my investment sources as an individual are the same resources available to me as a business owner.  Lenders and investors in a sole proprietorship treat investment requests as personal-use requests. There is no distinction between personal income and proprietorship income.

My personal lines of credit will be used to support the investment needs of the business venture if necessary. I have decided to remove my spouse from the account since it is jointly owned; this will prevent the risk of having credit ratings affected negatively should the business become unable to make on-time payments in future. 

Advantages and Disadvantages

The four basic business organizations have advantages and disadvantages in terms of taxation, legal implications, financing and, continuity. The owner/s of any business organization will likely face certain legal ramifications regarding the protection of assets.