Natalie Koebel spent much of her childhood learning the art of cookie$-$making

from her grandmother. They passed many happy hours mastering every type of cookie

imaginable and later creating new recipes that were both healthy and delicious. Now at

the start of her second year in college, Natalie is investigating various possibilities for

starting 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 of brainstorming sessions, Natalie settles on the idea of

operating a cookie$-$making school. She will start on a part$-$time basis and offer her

services in people$$s homes. Now that she has started thinking about it$,$ the possibilities

seem endless. During the fall, she will concentrate on holiday cookies. She will offer

individual lessons and group sessions $($which will probably be more entertainment than

education for the participants$).$ Natalie also decides to include children in her target

market.

The first difficult 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 that Natalie use for her business? Discuss the benefits and

weaknesses of each form and give the reasons for your choice.

$($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 owner$$s 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?