Bowen Pty Ltd is a small proprietary company with seven directors. Four of the seven directors own 75% of the ordinary shares and the remaining shares are owned by family members of the directors. The company also has 15 trade creditors and an open line of credit with one state bank. Is Bowen Pty Ltd a reporting entity and hence required to prepare general purpose financial reports? Select one:

a. Yes, because dependent users of financial reports exist.

b. No, because there are no obvious users who are unable to command the preparation of information from the entity.

c. No, because it is a small proprietary firm.

d. Yes, because there are trade creditors who are external users.