Accounting and Finance Foundations

Unit 4

Accounting and Finance Foundations Unit 4: Ownership Structures 289

Ownership StructuresOpen-Response Unit Assessment S/T Guide

Skill Standards

Academic:

AA 1 Utilize effective verbal and non-verbal communication skills

AA 3 Communicate and follow directions/procedures

AB 1 Locate and interpret written information

AB 3 Identify relevant details, facts, and specifications

AB 5 Demonstrate competence in organizing, writing, and editing using correct vocabulary, spelling,

grammar, and punctuation

AB 6 Demonstrate the ability to write clearly and concisely using industry specific technology

AC 1 Utilize critical-thinking skills to determine best options/outcomes (e.g., analyze reliable/unreliable

sources of information, use previous experiences, implement crisis management, develop contin-

gency planning)

AC 2 Utilize innovation and problem-solving skills to arrive at the best solution for current situation

Employability:

EG 4 Locate and verify information

Accounting:

OD 4 Compare and contrast the different types of ownership and business structures

Scenario

You have just been given the opportunity to start a new business selling specialty flip flops. After careful

research, you have discovered that the cost of getting started will be $5,000. You just graduated college,

and you have a total of $1,500 in savings.

Tasks

A. Identify and describe three different ownership structures you could choose for your new business.

B. Explain which ownership structure would be the most beneficial to you in regards to liability, taxes,

continuity, and control.