Sara and Clara form a proprietary company called Slara Pty Ltd, to incorporate their small haberdashery business.Sara and Clara hold 51% of the shares and issue the remaining 49% to 30 different friends and acquaintances.Slara Pty Ltd is most likely to be classified as a reporting entity based on:
A)Economic importance or significance
B)Political importance or significance
C)Financial characteristics
D)Separation of management from economic interest

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The Answer of Sara and Clara form a proprietary company called Slara Pty Ltd, to incorporate their small haberdashery business.Sara and Clara hold 51% of the shares and issue the remaining 49% to 30 different friends and acquaintances.Slara Pty Ltd is most likely to be classified as a reporting entity based on:
A)Economic importance or significance
B)Political importance or significance
C)Financial characteristics
D)Separation of management from economic interest

Sara and Clara Form a Proprietary Company Called Slara Pty