Mr and Mrs Swanson are thinking of starting a business enterprise. They have saved up some money from their 20 years in employment and have decided to produce and sell biscuits and chocolates. They expect this to be a lifelong investment with a plan for rapid growth and expansion. They know that there are different forms of businesses, each with its own benefits and limitations, but are unsure of the best one to adopt. They also require the aid of an in-house accountant to help with their day-to-day management decisions, but also unsure if a management accountant would be preferable to a financial accountant. Since this is a lifelong investment, with plans for expansion, they would also like to know the sources of finance available to them. They have come to your accounting practice for advice and guidance on these issues.

As an accountant, you are required to write a report to Mr and Mrs Swanson explaining the issues below:

• Explain the different forms of business units (sole proprietorship, partnership, limited company) available, highlighting the benefits and limitations of each
• Explain financial accounting and management accounting, highlighting the differences between the two strands of accounting
• Explain the sources of finance available to a business owner, making distinctions between internal and external sources, short-term and long-term sources, equity and debt
• Style, layout, format and relevance
• Introduction, conclusion and Recommendation
• Referencing - Harvard Style