The purpose of accounting is to provide financial information about the financial condition of a business to indi9viduals, agencies, and organizations. Users of accounting information include owners, managers, creditors and government agencies. The owner assumes all the risks for the business personally. Owner makes all of the business decisions. Partnership-Business is owned by more than one person.
Partners assume all the risks for the business personally.
Owners share risks and decision making. Partners may disagree about the way the business should be run. Corporation-Business is owned by stockholders. Owners' risks are limited to their initial investment. In publicly owned corporations, shareholders often have very little influence on business decisions.