Intermediate Accounting Assignment
Mr. Harith started his business 10 years ago. The business was run and owned by him. He takes the responsibility and all the profit. The business has grown rapidly and he is thinking of expanding further, which needs another $5 millions.
Now he is having so many options:
(i) He wishes to bring in his son, who is a qualified accountant and daughter, who is a lawyer, into the business, to assist him but they both don't have much saving in their hand.
(ii) He can convert his business into Public Limited Company by issuing shares and bonds to public.
You are required:
a) Explain in detail the various types of business organizations, its advantages and disadvantages.
b) Specify the various types of shares Mr. Harith can issue to public to obtain enough Finance to expand his business. What are the advantages and disadvantages of each types of shares?
c) Specify the various types of long-term bonds a company can issue to the public. Also, explain the issue of Bonds at premium and at discount.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.