Theory Essay Question
Alan Moser and Stephanie Philips operate a successful software business. Alan and Stephanie are existing clients of your accounting firm CPT Accountants. Their business currently operates as a partnership but due to expansion plans they are considering incorporating the business (ie becoming a company). They wish to clarify the following points before making a decision and have asked CPT accountants to write a report answering the following:
- If they form a proprietary (private) company how will they know they if they are a large or small proprietary company?
- What regulation applies to a small proprietary company versus a large proprietary company?
- They have heard the term “conceptual framework” but are unsure what this is. Briefly explain this to them.
- Write a report to Alan and Stephanie answering their three issues outlined in the information above. Maximum word limit is 1 000 words. The report must be typed using 1.5 line spacing and be appropriately referenced. You should use the APA referencing style and attempt to use other references.