AYB311 Lecture Notes - International Financial Reporting Standards, Boost Juice, Proprietary Company
Document Summary
Lecture 9 small and medium sized entities. It must be congruent with the perceptions of financial markets. Organisational structure, market influence and management features: has a small share of its market, not the capacity to influence the market. If it does this, it is unlikely to be an sme. Woolworths and coles can change the supermarket industry but foodworks or iga cannot. Independent: owner-managers free from outside control to operate business as they see fit. Common measures include: number of employees, total assets, sales turnover. Control variables used in capital market studies accounting measures. Advantage over qualitative evaluations: gross domestic product, economic changes, comparisons between countries. Forms in australia are: sole trader, partnership, proprietary company. Small businesses in australia: 45 % are companies. Many choose this due to the limited liability option. Uk businesses: 2. 52 million with no employees. Small business: fewer than 20 people. Medium business: 20 or more but fewer than 200 people.
