Baker Construction is a small corporation owned and managed by Tom Baker. The corporation has 21 employees,

Question:

Baker Construction is a small owned and managed by Tom Baker. The has 21 employees, few creditors, and no investor other than Tom Baker. Thus, like many small businesses, it has no obligation to issue ﬁnancial statements to creditors or investors. Under these circumstances, is there any reason for this to maintain accounting records?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...