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CCCl Natalie Koebel spent much of her childhood learning the art of cookie-making from her grandmother. Theypassed many happy hours mastering every type of cookie

image text in transcribed CCCl Natalie Koebel spent much of her childhood learning the art of cookie-making from her grandmother. Theypassed many happy hours mastering every type of cookie imaginable and later creating new recipes that were bothhealthy and delicious. Now at the start of her second year in college, Natalie is investigating various possibilities forstarting her own business as part of the requirements of the entrepreneurship program in which she is enrolled. A long-time friend insists that Natalie has to somehow include cookies in her business plan. After a series ofbrainstorming sessions, Natalie settles on the idea of operating a cookie-making school. She will start on a part-timebasis and offer her services in people's homes. Now that she has started thinking about it, the possibilities seemendless. During the fall, she will concentrate on holiday cookies. She will offer individual lessons and groupsessions (which will probably be more entertainment than education for the participants). Natalie also decides toinclude children in her target market. The ?rst dif?cult decision is coming up with the perfect name for her business. In the end, she settles on"Cookie Creations" and then moves on to more important issues. Instructions (a) What form of business organization—proprietorship, partnership, or corporation— do you recommend thatNatalie use for her business? Discuss the benefits and weaknesses of each form and give the reasons for yourchoice. (b) Will Natalie need accounting information? If yes, what information will she need and why? How often willshe need this information? (c) Identify speci?c asset, liability, and owner' slstockholders' equity accounts that Cookie Creations will likelyuse to record its business transactions. (d) Should Natalie open a separate bank account for the business? Why or why not?

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