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  • 1.1 3 Users of Financial Statements

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    The document discusses three users of financial statements - management, customers, and investors. It also lists three types of business entities that require financial information: close corporations, clubs and societies, and partnerships. Finally, it outlines the advantages and disadvantages of close corporations, noting that their advantages include low legal requirements and liability protection, while a disadvantage is difficulty obtaining loans due to lack of financial reporting requirements.

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    Bbq 5999

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    The document discusses three users of financial statements - management, customers, and investors. It also lists three types of business entities that require financial information: close corporations, clubs and societies, and partnerships. Finally, it outlines the advantages and disadvantages of close corporations, noting that their advantages include low legal requirements and liability protection, while a disadvantage is difficulty obtaining loans due to lack of financial reporting requirements.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    10 views3 pages

    1.1 3 Users of Financial Statements

    Uploaded by

    auditorever
    The document discusses three users of financial statements - management, customers, and investors. It also lists three types of business entities that require financial information: close corporations, clubs and societies, and partnerships. Finally, it outlines the advantages and disadvantages of close corporations, noting that their advantages include low legal requirements and liability protection, while a disadvantage is difficulty obtaining loans due to lack of financial reporting requirements.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    Question 1 1.

    1 3 users of financial statements Management Customers Investors

    1.2 3 types of business entities requiring financial information Close Corporations Clubs and Societies Partnerships

    1.3 Advantages and Disadvantages of close corporations Advantages It requires very little legal formalities A minimum of two members can form a close corporation (CC) Very little capital contribution is required The CC is a separate legal person free from its owners thus is sued and can sue in its own name Profits are distributed in accordance with the initial contribution made by members

    Disadvantages It is difficult to get loans when trading as a CC because with very few legal requirements to start, there is not much

    Question 2

    Question 3

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