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).

Assignment Information

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:

 

  1. If they form a proprietary (private) company how will they know they if they are a large or small proprietary company?
  2. What regulation applies to a small proprietary company versus a large proprietary company?
  3. They have heard the term “conceptual framework” but are unsure what this is. Briefly explain this to them.

 

Required:

 

  1. 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.
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