Sara and Clara Form a Proprietary Company Called Slara Pty

question 9

Multiple Choice

Sara and Clara form a proprietary company called Slara Pty Ltd, to incorporate their small haberdashery business.Sara and Clara hold 51% of the shares and issue the remaining 49% to 30 different friends and acquaintances.Slara Pty Ltd is most likely to be classified as a reporting entity based on:

• A)Economic importance or significance
• B)Political importance or significance
• C)Financial characteristics
• D)Separation of management from economic interest

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Definitions:

Subordinate

An individual who is lower in rank or position, typically subject to the authority or control of another within an organizational hierarchy.

Project Completion

The phase in project management where all the tasks are completed, objectives are met, and the project deliverables are approved and handed over.

Assigning Work Effectively

The process of distributing tasks among team members in a manner that maximizes efficiency and aligns with their skills and capacity.

Logical Sequence

An organized, coherent order or progression of steps, events, or actions that follow a rational pattern or reasoning.