making within an organization will depend on the impact of each decision on the reported performance of the company. Knowing how the accounting system translates activities into performance measurements is therefore critically important. A final reason for starting with accounting is that it is so important to the understanding of the investment process. As I will show later, there are few people in our society who will not be faced with innumerable investment decisions during their lifetimes. This may be the only business course that some students take. Consequently, providing the accounting knowledge necessary to begin to comprehend the investment process is an invaluable long-term contribution. Types of Business Entities Business organizations are classified into one of three forms: the proprietorship, the partnership and the corporation 0 The proprietorship is owned by a single individual who usually also manages the operation of the business. Small retail enterprises and individual professional businesses such as your local dentist, doctor, or lawyer are wner is liable ponsible) for any debts or obligations incurred by the business. In terms of examples of proprietogships. Ins this form business, the accounting for such a business, however, it is a good idea to separate the accounting for the business from the accounting for the owner. The reason is Chapter 1 Section A