Partnership Versus Public Ownership of Accounting Firms

Question: Discuss about the Partnership Versus Public Ownership of Accounting Firms. Answer: Introduction This research study gives the theoretical points of view with considering the partnership relationship which is focused to be most efficient forms of ownership in regarding the professional service firms. The research provides the comparative performance of the PSF with the creation of conflict between PLCs and the partnerships. The study also depicts the exploration of the Australian Accounting PLCs which is achieved by the comparison of the similar sized accounting firms. Henceforth the need of the research depicts the exploration of the market, service focus and the organizational structures with the appropriate utilization of the resources[1]. The further research also depicts the creation of exploration for the performance and thereby the measurement is made accordingly with the measurement of the companys annual report. Rapid growth is also identified with mitigating the risk factors that are seemed to be identified in the case of performance measurement provided in the article . Research Questions The article main focus is to determine and evaluate partnership versus public ownership of accounting firms. The article seeks to explore relative performance of public corporation ownership and partnership ownership for accounting firms. The paper also shows the knowledge of data sources and performance measures used to compare the performance of different legal forms[2]. It is widely observed that the partnership accounting firms are better than the public ownership accounting firms in terms of performance. Partnerships are also associated unlimited responsibility where the partners are liable for the action of the other partners of the firm. Is efficiency of partnership accounting firm superior compared to the public ownership accounting firm? Despite of advantages of partnership firm what is reason behind the current trend of public ownership accounting firm? Do proxy performance measures accurately reflect the accounting firms performance. Do budgeted income reported in the surveys of the published industry provide a reflection of real income achieved? Were constant measures as well as calculation measures, which are used around the period of top 100 surveys of BRW? Question Explored Comparing performance of the organizations How to public accounting firms perform in comparison to partnerships? The research method include comparing per person (2000 to 2005) and revenue growth (1999 to 2005) for two public listed accounting companies in Australia and 10 mid tier partnerships[3]. Exploring validity of the proxy measures Do proxy measures estimates of performance reflect the performance of the accounting firms? The financial performance of two public listed accounting firms are compared by using proxy measures (revenue per person and revenue growth rate) for the year June 30 2002[4]. The proxy measures were found not to be reflective of disparate financial performance of the organizations The reviewed reports of revenue per person survey for outlier organizations with extremely low or high revenue per person and also investigated reasons by analyzing published reports of media sin electronic database of magazine articles and newspaper The productivity measures reported in the BRW utilities at the end of the year and the numbers may understate the high growth productive of PLCs[5]. The revenue per person was calculated using t he average number of staff for the year and the personal numbers was underrated the productivity of PLC in comparison to partnership Exploring quality of the published industry Does the budgeted revenue numbers reported are seemed to be published in the industrial survey with creating the appropriate reflection towards the actual revenues achieved? With the comparison of the survey of the BRW survey data, the pushing of the annual reports are made in order to create the similar findings with the consideration of the annual reports of the considered firms[6]. It also helps in implicating the explored resources with the usage of the reported budget and thereby the nine observations are identified in the prior year of the BRW survey. Differentiations are created with the mergers and the demergers. Conclusion The available measurement of the proxy is determined in this study which is seemed to be depicted in the case study and thereby the partnership performance measurement is created in the form of the samples of the lower level. Potential ways are enabled for the creation of greater growth and therefore the partnership includes greater growth with accessing the capital firm and companies shares. References Demer, B, R Krishnan, K Sedatole, A Woods, "Do the incentive effects of relative performance measurement vary with the ex ante probability of promotion?". inManagement Accounting Research, 30, 2016, 18-31. Fan, Q, "Earnings Management and Ownership Retention for Initial Public Offering Firms: Theory and Evidence". inThe Accounting Review, 82, 2007, 27-64. 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