Sara is planning to open a construction company in the UK. She understands that a limited company needs more formalities in terms of formation and operation, compared to other forms of business organisations, however, it will be more beneficial to her. Sara is already familiar with the reporting and recording requirements of a partnership since she is a partner at SAZ Hardware in the UK. She asked your help on the following: a. Describe how a company is formed, owned and managed. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ b. Help Sara to assess the financial reporting of a company so that she will be guided in her decisions in terms of: i. Taxation requirement of a company. ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ii. Financial statement presentation of a company. ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ iii. Reporting requirements of a company. ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ c. Discuss 2 reasons why the stockholders will be encouraged to invest in the corporation that Sara is planning to establish

Sara is planning to open a construction company in the UK. She understands that a limited company needs more formalities in terms of formation and operation, compared to other forms of business organisations, however, it will be more beneficial to her. Sara is already familiar with the reporting and recording requirements of a partnership since she is a partner at SAZ Hardware in the UK. She asked your help on the following: a. Describe how a company is formed, owned and managed. __ b. Help Sara to assess the financial reporting of a company so that she will be guided in her decisions in terms of: i. Taxation requirement of a company. ii. Financial statement presentation of a company. iii. Reporting requirements of a company. c. Discuss 2 reasons why the stockholders will be encouraged to invest in the corporation that Sara is planning to establish

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter15: Taxing Business Income

Section: Chapter Questions

Problem 1DQ

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