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Part A- Accounting and Cash Flow
1. Identify five local businesses and talk to their owners. Ask them about how they handle their accounting needs. Do they do it allthemselves or do they use an accountant or an accounting service? If they use an accountant or an accounting service, ask them in what way-merely to prepare taxes or do they draw on them for other advice?
2. Identify five local accountants or accounting firms. Ask them about the services that they provide to small businesses. If possible, try to determine the cost of these services.
3. Ask the five local businesses which system they use-cash or accrual-and why they use it.
Part B- Financial Management
1. Interview the owners of five local businesses and ask them what business organizational format they use and why they adopted that form.2. Ask them how they initially financed the start-up of their businesses.3. Ask these same owners how they prefer to finance the firm. (Note that most owners will probably not want to go into any detail about the financial operations of their businesses.)
4. Ask them if they have had any experience with any SBA loan program and if they have any reactions to these programs.
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question all divisions use typical absorption costing. the division has the capacity to manufacture 50000 units a
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