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:
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.
