Question

Create a chart containing the three forms of business organizations: proprietorships, partnerships, and corporations. Include key users of financial information, and briefly explain their roles.

Answer 1

Answer:

a. Owner

b. Partners

c. Stakeholders

Explanation:

The key users of financial information of a proprietorship is the owner.

The key users of financial information of a partnership are partners.

The key users of financial information of a corporation are the stakeholders.

In a proprietorship the owner invests, manages and gains profit from the organization.

In a partnership the partners invest, manage and each partner gain profits from the organization.

While in a corporation the shareholders invest, the employees manage and the profits made are gained by the shareholders in the form of dividends.