What Is The Limitation Of Remuneration Allowed If Book
Profit Is 375850 In A Business Firm And In A Professional
Firm?
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Answer Posted / Sachin Dev
The limitation of remuneration for a business firm and a professional firm can be governed by different rules. For a business firm, the Companies Act in many countries sets limits on directors' remuneration based on factors like company size, profitability, and performance. However, professional firms (such as law or medical practices) typically follow ethical guidelines set by their respective regulatory bodies, which may not have strict financial limits.
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