Kate Collins has always been good at putting together rhymes for any occasion. Kate is a recent college graduate with a double major in business and art. Kate has always had a bit of an entrepreneurial streak and has decided to open her own business designing and selling greeting cards.

Kate decided that she would rent a small studio where she would design the cards on a new Apple iMac that she is planning to purchase. Kate also decided to offer classes in greeting card design to other aspiring greeting card producers. After much thought, Kate decided to name her business "Kate's Cards."

Required

a. What form of business-sole proprietorship, partnership, or corporation-should Kate choose? Discuss why the organizational form that you selected is most appropriate for Kate.

b. What accounting information will Kate need to run her business?

c. What balance sheet accounts-assets, liabilities, and stockholders' equity-and income statement accounts-revenues and expenses-will Kate likely need to use?

d. Should Kate use her personal bank account or open a separate business bank account?