Financial Management Processes

Running Head: FINANCIAL MANAGEMENT PROCESSES
FINANCIAL MANAGEMENT PROCESSES
Name of the Student
Name of the University
Author Note

1FINANCIAL MANAGEMENT PROCESSES
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
First option.............................................................................................................................2
Advantages and Disadvantages of Proprietary Company as compared to Partnership.....2
Setting up of small proprietary business............................................................................2
Rights and Obligations of company’s directors.................................................................3
Funding Options of company.................................................................................................3
Second option.........................................................................................................................3
Advantages and Disadvantages of listed company to small private companies................3
Funding options of company..............................................................................................4
Australian Securities Exchange reporting requirements....................................................4
Conclusion..................................................................................................................................4
Reference....................................................................................................................................5

2FINANCIAL MANAGEMENT PROCESSES
Introduction
The aim of this report is the analysis of the analysis of the business case of the
entrepreneur, Xiaojing Wu who is from China and immigrated to Australia for setting up a
business in South Australia. There are two options for Xiaojing and other partners, either to
advice regarding set of small proprietary company or for considering being the company
listed on the Australian stock exchange. Hence, under this report discussion will be done on
these two options for advising Xiaojing.
Discussion
First option
Advantages and Disadvantages of Proprietary Company as compared to Partnership
The advantage of proprietary company is that the shareholder’s liability is limited in
the share capital, the directors and shareholders of the company are employed under wage
conditions and normal salary and the income taxes are taxed at the personal rates. The
personal assets of the shareholders are not at risk under the threat of financial losses as
compare to partnership where liability of partners for the debts obligations of the business is
unlimited (Warnock 2015).
The disadvantages is that, the formation of the proprietary company is the
complicated task which requires lot of paper work, greater regulations by government and
increased record-keeping as compare to partnership where there is few government
regulations, inexpensive and paying of income taxes on their part of share profits (Warnock
2015).
Setting up of small proprietary business
For setting up of small proprietary business in Australia, first of all business structure
have to be decided, Australian business number have to be applied then chosen business