You run a financial consultancy firm (for which you should provide a name) and you have been approached to advise clients, some of whom are new prospective clients who have just retired from their employment after a long service. They have retired with a lump sum of money and are planning to start a business they can own or control.
The clients do not know the types of business entities available, neither do they have an idea of the type of business they want to initiate.
As a consultant, you are required to write a report to be delivered by your firm to these clients explaining the following issues below:
•Discuss and explain the different forms of business units(sole proprietorship, partnership, limited company) available, highlighting the benefits and limitations of each.
•Discuss and explain financial accounting and management accounting terms, highlighting the differences between the two strands of accounting .
•Assuming that you have not been given any information about the funds the couple have available. You are required to explain the sources of finance available to a business owner, looking at Short-term sources and Medium-term sources,give at two examples of each.