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Summary GB518 Unit4 CasePart2.docx GB-518 Cookie Creations Continuing Case Purdue Global University Abstract In this case study I will be exploring a new business venture by Natalie Koebel, œCookie Creations. There are different areas of business creati$7.49
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Summary GB518 Unit4 CasePart2.docx GB-518 Cookie Creations Continuing Case Purdue Global University Abstract In this case study I will be exploring a new business venture by Natalie Koebel, œCookie Creations. There are different areas of business creati
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GB518 Unit4 CaseP GB-518 Cookie Creations Continuing Case Purdue Global University Abstract In this case study I will be exploring a new business venture by Natalie Koebel, œCookie Creations. There are different areas of business creation to be examined, distribution opportunities, reco...
gb518 unit4 casepart2docx gb 518 cookie creations continuing case purdue global university abstract in this case study i will be exploring a new business venture by natalie koebel
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GB-518
Cookie Creations Continuing Case
Purdue Global University
Abstract
In this case study I will be exploring a new business venture by Natalie Koebel, “Cookie
Creations.” There are different areas of business creation to be examined, distribution
opportunities, record keeping, and establishing internal controls. Natalie will need to hire a
competent staff that can ensure she is operating a business ethically and profitably. Record
keeping is one of several internal controls that need to be in place to ensure compliance with all
guidelines and requirements for financial reporting and record keeping. The negative effects of
not having effective systems in place can create numerous challenges and impact forecasting. I
will explore if Natalie wants to become a cookie distributor for another company and what she
needs to consider before making that decision? This case study will evaluate the benefits or lack
of benefits to offering purchases on credit. I will be researching this case with various sources
including the internet, Wiley Plus and other accounting books available.
Cookie Creations Continuing Case
As part of an entrepreneurship program at her university Natalie Koebel has decided to
create a business plan around baking and cookies. She has such fond memories of her childhood
cookie making that she has decided to focus there. Some of the things she enjoyed about baking
with her grandmother included recipe development and creating new recipes that were not only
healthy but also delicious, these are two of the parts of her business plan. Natalie will also be
exploring establishing effective business practices and partnership with other businesses.
, CC1 – Business Decisions
a. Business Organization
One of the first decisions that Natalie needs to make is what form of business organization
she will be using. Three of the choices include sole proprietorship, partnership, or corporation
(Kimmel et al., 2019. Just starting as a small business it seems that creating the business as a sole
proprietorship or partnership would be the easiest and fastest way to get started, however, upon
further research there are some drawbacks to sole proprietorship. With a sole proprietorship there
is not separation of personal finances from business finances (SBA, 2019a) so in the case that
something goes wrong financially she would be completely responsible for the financial
implications. Since Natalie isn’t planning on going into business with anyone a partnership isn’t
an option she needs to consider at this time. Looking at a beginning her business as a corporation
seems like it is bigger than what she needs, however, in order to protect herself and her personal
assets and be able to raise capital to get the business going it seems that may be a reasonable
choice. One drawback of a corporation is the higher rate at which they are taxed.
b. Accounting Information
The accounting information that Natalie will need to know will ultimately depend on which
type of business model she chooses. But at minimum she will need to know how much she is
responsible for in taxes, accounts receivables, accounts payable, inventory, what dividends are
owed to her stockholders, expenses (rent, supplies, utilities) and the revenue Cookie Creations is
creating. Some of these she may need on a daily basis, but more often she will need these
numbers monthly. She will need to track accounts payable which is where she would receive the
products, she needs to create products so the invoices can be paid. When she is billing customers
or creating invoices for teaching classes this would need to be tracked in accounts receivable.
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