Natalie Koebel spent much of her childhood learning the art of cookie making from her grandmother. They passed many happy hours together, mastering every type of cookie imaginable and later devising new recipes that were both healthy and delicious. Now in college.

Natalie is investigating various possibilities for starting her own business as part of the requirements for an Entrepreneurship class she is taking.

Because of her extensive knowledge. Natalie has settled on the idea of a cookie-making school. She will start it on a part-time basis and offer her services in peoples' homes. She will offer group sessions (which will probably be more entertainment than education for the participants) and individual lessons. Natalie also has decided to include children in her target market. The first difficult decision is to come up with the perfect name for her business. In the end. she selects "Cookie Creations" and then moves on to more important issues.
Instructions

(a) What form of business organization—proprietorship, partnership, or corporation—do you recommend Natalie use for her business? Discuss the advantages and disadvantages of each form, and give your reasons for choosing the form of business organization you recommend.

(b) Will Natalie need accounting information? If yes. what information will she need and why?
How often will she need this information?

(c) Identify specific asset, liability, and equity accounts that Cookie Creations will likely use to record its business transactions.

(d) Should Natalie open a separate bank account for the business? Why or why not?

(e) Natalie expects she will have to use her car to drive to people's homes and to pick up supplies, but she also needs to use her car for personal reasons (to get to school, for example).
She recalls from her first-year accounting course something about keeping business and personal assets separate. She wonders what she should do for accounting purposes. What do vou recommend?