100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
NOTES R133,33   Add to cart

Class notes

NOTES

 2 views  0 purchase

INTRODUCTION TERMS AND REQUIREMENTS

Preview 2 out of 6  pages

  • July 2, 2024
  • 6
  • 2023/2024
  • Class notes
  • Bruce
  • All classes
All documents for this subject (12)
avatar-seller
avuyilezonke
Learning Unit 1: Introduction to Business Enterprise
Structures


Sole Trader:



- A sole trader is the business itself.
- It involves just one person as the owner.
- The owner reaps all profits and assumes all risks.

- Business success relies entirely on this single individual.
- No distinction exists between the business's and owner's assets.
- The owner has unlimited liability, responsible for all debts.
- Tax implications are often unfavourable.


Partnership:


- Formed by two or more people, a partnership is a contractual legal relationship.
- As per the 2008 Companies Act, there must be at least two partners, with no
maximum limit.
- Partners contribute to a common business aimed at generating profit to be shared.
- Typically lacks a separate legal entity status.
- Does not have perpetual succession.
- Partners have unlimited liability.


Company:


- A company is registered under the Companies Act of 2008.
- It is a separate legal entity distinct from its shareholders.
- Enjoys perpetual succession.
- Shareholders have limited liability, capped at their share value.



1

, - Directors can be personally liable in specific scenarios.
- Companies can be either for-profit or non-profit.


Types of Profit Companies:


- **Public Company:** Not a state-owned, private, or personal liability company.
Shares are publicly offered and transferable. Can be listed or unlisted and governed
by the company's Memorandum of Incorporation (MOI). Identified by "Ltd."
- **State-Owned Company:** Listed as a public entity or municipality-owned. Provides
goods or services under business principles. Juristic person under national
government control, financed outside the National Revenue Fund. Identified by "SOC."

- **Personal Liability Company:** Private company used by professional associations.
MOI indicates personal liability, and directors share liability for debts incurred during
their tenure.
- **Private Company:** MOI restricts public share offering and transferability. No limit
on the number of shareholders.



Non-Profit Company:


- Has a public benefit or social/cultural objectives.
- Assets and income must advance the company's objective.
- Incorporators, members, or directors cannot gain financially except for reasonable
remuneration or expenses.
- On dissolution, remaining assets must go to similar non-profit entities.
- Can have voting and non-voting members as specified by the MOI.



Close Corporation (CC):


- Similar to a company but with simpler registration and administration.
- New CCs cannot be formed post-2008, but existing ones continue.
- Members can actively manage, and liability is limited to the corporation.
- Minimum of one, maximum of ten members.


2

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying this summary from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller avuyilezonke. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for R133,33. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

79650 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 14 years now

Start selling
R133,33
  • (0)
  Buy now