Bowen Pty Ltd Is a Small Proprietary Company with Seven

question 2

Multiple Choice

Bowen Pty Ltd is a small proprietary company with seven directors.Four of the seven directors own 75% of the ordinary shares and the remaining shares are owned by family members of the directors.The company also has 15 trade creditors and an open line of credit with one state bank.Is Bowen Pty Ltd a reporting entity and hence required to prepare general purpose financial reports?

• A) Yes, because dependent users of financial reports exist.
• B) Yes, because there are trade creditors who are external users.
• C) No, because it is a small proprietary firm.
• D) No, because there are no obvious users who are unable to command the preparation of information from the entity.

Distinguish between different types of franchises and their specific legal considerations.

Learn about the liability and financial implications for sole proprietors.

Understand the legal protections and obligations for franchisees, including wrongful termination and the importance of good faith.

Know the significance of disclosure documents in franchising and the legal requirement to provide comprehensive information to potential franchisees.

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Definitions:

Marijuana

A mind-altering substance derived from the Cannabis plant, utilized either for therapeutic or leisure activities.

Dependence

The state of relying on or being controlled by someone or something else.

Withdrawal

Unpleasant and sometimes dangerous symptoms such as nausea, headache, or tremors experienced when an addictive substance is removed from the body.

First Nation

Indigenous peoples in Canada who are neither Inuit nor Métis, often referred to as bands or tribes in other contexts.