Gamma Pty Ltd would be a small proprietary company as its records show:
A) assets of $15m, sales of $26m and 40 employees.
B) assets of $6m, sales of $26m and 60 employees.
C) assets of $15m, sales of $9m and 55 employees.
D) assets of $4.5m, sales of $12m and 45 employees.

Question

Quizplus · Accepted Answer

A small proprietary company in Australia is defined as having two of the following: fewer than 50 employees, assets of less than $25m, and sales of less than $25m. Gamma Pty Ltd meets the first two criteria with 45 employees and assets of $4.5m, but its sales of $12m exceed the threshold. Therefore, it is a small proprietary company because it meets two out of three criteria.

Gamma Pty Ltd Would Be a Small Proprietary Company as Its