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The four types of public company
Companies where capital is limited by shares, companies where share capital is limited by guarantee, no-liability companies, unlimited share capital companies.
The advantages of companies as a business structure
Limited liability, separate legal entity, can gain capital via selling shares.
The disadvantages of companies as a business structure
More expensive and difficult to establish, must comply with more legal acts, subject to company tax, owners get little say in the company's direction.
The advantages of trusts as a business structure
Minimal tax payments, limited liability, little regulation (unless they are listed on the ASX).
The disadvantages of trusts as a business structure
Additional complex laws apply, they require suitable, qualified accountants to run.
Recognition criteria of assets/liabilities
The future economic benefits/outflows must be probably, and they must be able to be measured reliably.
Minority interests in controlled entities
Claims on the net assets that belong to the shareholders of controlled entities.
Net realizable value
Expected selling price minus expected costs of getting the inventory to a saleable state.
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