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1. Assignment 2: You Are an Entrepreneur!
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:
The product or service, and general staffing plan. Provide a rationale for your plan.
The form of your business and the benefits it offers your particular business,
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
quality 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.