Types and Forms of Business, Types of Accounting

1. Types and Forms
of Business, Types
of Accounting
Submitted To:
Sir Asif Bhatti

2. Submitted By
– Wasif Ali Syed (18221554-001)
– Abdul Rahim (18221554-012)
– M. Awais Khan (18221554-029)
– Mian Muhammad Sufyan (18221554-039)

3. Types of Business
There are major four types of business which are as follows:
– Service Business
– Selling Business
– Business Concern
– Hybrid Business

4. Service Business
A service form of business provides intangible merchandise (products with no
physical form). Service kind companies supply skilled skills, expertise, advice,
and different similar merchandise.
Examples of service businesses are: salons, repair retailers, schools, banks,
accounting companies, and law companies.

5. Selling Business
This type of business buys merchandise at wholesale worth and sells identical at
retail worth. they're called "buy and sell" businesses. they create profit
by merchandising the merchandise at costs more than their purchase prices.
A selling business sells a product while not ever-changing its type. Examples are:
grocery stores, convenience stores, distributors, and different resellers.

6. Business Concern
Unlike a selling business, a producing business buys merchandise with the intention
of exploitation them as materials in creating a replacement product. Thus, there's a
change of the merchandise purchased.
A manufacturing business combines raw materials, labor, and mill overhead in its
production method. The factory-made product can then be oversubscribed to
customers.

7. Hybrid Business
Hybrid businesses square measure firms which will be classified in additional than
one form of business. A eating place, as an example, combines ingredients
in creating a fine meal (manufacturing), sells a chilly bottle of wine
(merchandising), and fills client orders (service).
Nonetheless, these firms is also classified in step with their major business
interest. in this case, restaurants square measure a lot of the service kind – they
supply feeding services.

8. Forms of business
There are three forms of business which are as follows:
– Sole proprietary
– Partnership
– Corporation

9. Sole Proprietary
A sole proprietary may be a business in hand by just one person. it's simple to set-up
and is that the least pricey among all kinds of possession.
The owner faces unlimited liability; which means, the creditors of the
business could follow the private assets of the owner if the business cannot pay
them.
The sole proprietary type is typically adopted by little business entities.

10. Partnership
A partnership may be a business in hand by 2 or a lot of persons UN
agency contribute resources into the entity. The partners divide the profits of the
business among themselves.
In general partnerships, all partners have unlimited liability.
In restricted partnerships, creditors cannot follow the private assets of
the restricted partners.

11. Corporation
A corporation may be a business concern that features a separate
legal temperament from its house owners. possession in an exceedingly stock
corporation is diagrammatical by shares of stock.
The owners (stockholders) relish indebtedness however have restricted involvement
within the company's operations. The board of administrators, Associate in
Nursing no appointive cluster from the stockholders, controls the activities of the
corporation.

12. Corporation
In addition to those basic kinds of business possession, these square
measure another sorts of organizations that square measure common today:
– Limited Liability Company
– Cooperative

13. Limited Liability Company
Limited liability corporations (LLCs) within the USA, area unit hybrid sorts
of business that have characteristics of each an organization and a
partnership. AN LLC isn't incorporated; thus, it's not thought-about an organization.
Nonetheless, the house owners get pleasure from liability like in an
exceedingly corporation. AN LLC could elect to be taxed as a sole proprietary, a
partnership, or an organization.

14. Cooperative
A cooperative could be a concern closely-held by a gaggle of people and is
operated for his or her mutual profit. The persons creating up the cluster area
unit referred to as members. Cooperatives could also be incorporated
or unorganized.
Some samples of cooperatives are: water and electricity (utility) cooperatives,
cooperative banking, credit unions, and housing cooperatives.

15. Types of Accounting
There are several types of accounting that range from auditing to the preparation of
tax returns.
– Financial accounting
– Public accounting
– Government accounting
– Forensic accounting
– Management accounting
– Tax accounting
– Internal auditing

16. Financial Accounting
This field is concerned with the aggregation of financial information into external
reports. Financial accounting requires detailed knowledge of the accounting
framework used by the reader of a company's financial statements, such as
Generally Accepted Accounting Principles (GAAP) or International Financial
Reporting Standards (IFRS). Or, if a company is publicly-held, it requires a
knowledge of the standards issued by the government entity responsible for public
company reporting in a specific country (such as the Securities and Exchange
Commission in the United States).

17. Financial Accounting
There are several career tracks involved in financial accounting. There is a specialty
in external reporting, which usually involves a detailed knowledge of accounting
standards. There is also the controller track, which requires a combined knowledge
of financial and management accounting.

18. Public Accounting
This field investigates the financial statements and supporting accounting systems of
client companies, to provide assurance that the financial statements assembled by
clients fairly present their financial results and financial position. This field requires
excellent knowledge of the relevant accounting framework, as well as an inquiring
personality that can delve into client systems as needed. The career track here is to
progress through various audit staff positions to become an audit partner.

19. Government Accounting
This field uses a unique accounting framework to create and manage funds, from
which cash is disbursed to pay for a number of expenditures related to the provision
of services by a government entity. Government accounting requires such a different
skill set that accountants tend to specialize within this area for their entire careers.

20. Forensic Accounting
This field involves the reconstruction of financial information when a complete set
of financial records is not available. This skill set can be used to reconstruct the
records of a destroyed business, to reconstruct fraudulent records, to convert cash-
basis accounting records to the accrual basis, and so forth. This career tends to
attract auditors. It is usually a consulting position, since few businesses require the
services of a full-time forensic accountant. Those in this field are more likely to be
involved in the insurance industry, legal support, or within a specialty practice of an
audit firm

21. Management Accounting
This field is concerned with the process of accumulating accounting information for
internal operational reporting. It includes such areas as cost accounting and target
costing. A career track in this area can eventually lead to the controller position, or
can diverge into a number of specialty positions, such as cost accountant, billing
clerk, payables clerk, and payroll clerk.

22. Internal Auditing
This field is concerned with the examination of a company's systems and
transactions to spot control weaknesses, fraud, waste, and mismanagement, and the
reporting of these findings to management. The career track progresses from various
internal auditor positions to the manager of internal audit. There are specialties
available, such as the information systems auditor and the environmental auditor.

23. Tax Accounting
This field is concerned with the proper compliance with tax regulations, tax filings,
and tax planning to reduce a company's tax burden in the future. There are multiple
tax specialties, tracking toward the tax manager position.