1. Types of Business Organizations
Chapter 2
Types of Business
Organizations

2. Forms of Business Entities
There are four main forms of businesses:
Sole trader (proprietorship) where one person or a single family owns and operates the firm.
Partnership with two or more persons owning and operating the firm.
Corporation (limited liability company) where two or more persons (called shareholders) own the business but a board of directors manages its daily affairs.
Cooperatives where its members own a non-profit organization primarily for the benefit of members

3. Basic Financial Statements
All business types must produce four
basic financial statements:
Trading Account Collectively called
Profit and Loss Account Income Statement
Balance Sheet
Cash Flow Statement

4. IMPACT OF TECHNOLOGY
These financial statements, and all accounting information, are often supported by computer technology.
Whilst computers assist in the accounting process, they do not replace existing accounting principles.

5. IMPACT OF TECHNOLOGY Computer technology, when efficiently applied,
will provide greater:
Control
Accuracy
Storage
Speed
Remember CASS

6. IMPACT OF TECHNOLOGY There are also disadvantages of using computers
in accounting. These include:
high cost incurred for acquisition and set up
costly to retrain staff
increased labour cost due to higher entry level skills
upgrade and maintenance costs
costs of all security measures to prevent unauthorized users
system failure can lead to loss of information and delays in operations

7. MEASURES TO PREVENT UNAUTHORISED ACCESS
Implement security systems, for example, passwords or encryption codes.
Install software (anti viruses) programmes in order to deter viruses such as Trojan.
Create back-up systems in case there is a power outage or loss of data (on a hard copy on a venue off-site or on a flash drive).