Exam (elaborations)
FBE2604 ASSIGNMENT 2 SOLUTIONS SEMESTER 2 2023.PASS GUARANTEED.
- Institution
- University Of South Africa (Unisa)
FBE2604 ASSIGNMENT 2 SOLUTIONS SEMESTER 2 2023.PASS GUARANTEED.
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FORMS OF BUSINESS ENTERPRISE(FBE2604) ASSIGNMENT 2
SOLUTIONS SEMESTER 2, 2023
Precious Magocha
PASS GUARANTEED
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, QUESTION 1
1.1. (3 answers provided)
Based on the information provided, Paul has acted unlawfully as a trustee.
As a trustee, Paul has a legal obligation to act in the best interest of the trust
beneficiaries and preserve trust assets. However, the trust deed does not make any
provision for purchasing a delivery vehicle. By purchasing the vehicle without proper
authorization, Paul has breached his fiduciary duty as a trustee.
Trustees are generally required to adhere to the terms specified in the trust deed and
act within the bounds of their powers as set out in the trust instrument. If a trustee
wants to undertake activities or make investments that are not explicitly mentioned in
the trust deed, they should generally seek proper authorization from the beneficiaries
or the court.
Without proper authorization or provision in the trust deed, Paul's purchase of the
delivery vehicle is considered a breach of his duty and potentially exposes him to
legal consequences.
OR
Based on the information provided, it can be inferred that Paul has acted unlawfully.
As a trustee, Paul has a legal obligation to act in the best interests of the trust and
preserve the trust assets. However, purchasing a delivery vehicle for the business
without any provision in the trust deed is likely a breach of his fiduciary duty.
Trustees are generally required to follow the terms of the trust deed and act within
the powers granted to them. Making significant financial decisions, such as
purchasing a delivery vehicle, without the necessary authorization would likely be
considered a violation of the trustee's duties.
Additionally, it is important for trustees to exercise prudence and act in a manner that
benefits the trust and its beneficiaries. Without any provision in the trust deed
allowing such activities, Paul's actions could be seen as speculative or potentially
detrimental to the trust assets. This could potentially expose him to legal
consequences and financial liability.
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