Shantelmmasebee

“A trust is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary. Trusts are established to provide legal protection for the trustor’s assets, to make sure those assets are distributed according to the wishes of the trustor, and to save time, reduce paperwork and, in some cases, avoid or reduce inheritance or estate taxes. In finance, a trust can also ...

Turnover tax is a simplified system of taxation that was introduced to substitute income tax, CGT, dividends tax (partially) and VAT. This system of taxation applies to all businesses who qualify as a micro business. This study unit is going discuss the requirements to qualify as a micro business, the calculation of taxable turnover, turnover tax rates, the requirements for registration and deregistration of turnover tax, and lastly, how turnover tax is administered.

VAT is an indirect tax charged on goods and services. Any enterprise registered as a VAT vendor may claim back VAT it had paid on its purchases from SARS. Government makes revenue, mainly, through VAT and other forms of tax. It is mandatory for certain businesses to register as VAT vendors. These businesses act as the agent for government in collecting the VAT. This study unit provides an in-depth discussion of the major aspects of VAT. VAT was introduced in South Africa in 1991 to replace the G...

Entrepreneurship is a subject of great importance and relevance to any economy, because it involves the formation of companies, which supply people with goods and services they need and results in the creation of jobs. The purpose of this module is to encourage and stir the entrepreneurial spirit in the students, so that they can go into their communities and form new companies, develop existing businesses and create the much needed jobs for their countries. In this unit we will learn the meani...

The setting up of a business or the entrepreneurial process can be divided into three phases - the idea stage, the planning stage and the implementation stage. This unit is part of the idea stage. Many people would like to take the plunge and start a business of their own, but lack the idea of what to produce and sell. How can one know whether he/she has stumbled on an idea that can give rise to a new business? In this section, we will try to answer this question. We will look at the methods th...

The factors of production are land, labour, capital and entrepreneurship. The primary sector involves the exploitation of natural resources in their unprocessed form. The secondary sector involves the processing of natural resources into their final product. In the tertiary sector the finished goods are transported to the consumer. Although the objectives of entrepreneurs vary, the profit motive deserves special attention because profit sustains the business. Enterprises can be formal or informa...

In this Unit we will be taking a closer look at the acquisition and payments cycle, and what makes up their component parts. We will also be looking at the different types of controls that companies put in place during the different stages of the acquisition and payments cycle that could have an impact on the amount of substantive audit procedures that will need to be performed. In the unit we will look at the revenue and receipts cycle, but from the other side, i.e.: we are now the custome...

There are various costs which are incurred when running a business for example goods bought for consumption and resale as well as other services. The acquisition and payment for these goods and services is what constitute this acquisition and payment cycle. The acquisitions and payment cycle deals with two major activities which are linked but which are also quite distinct, Adam et al. (2020:756), these include: Ordering and receiving goods or services from suppliers – this activity is meant ...

This cycle can be divided into two main areas: Financing function: where does the company get its money from? The raising of finance could take the form of issuing share capital to fund the business, or borrowing money from shareholders or a financial institution in order to get the finance needed to run the business Investment function: what does the company do with its money? Normally a company will invest in property, a premises from which to operate, or other fixed assets that are necessar...

Salaries and wages are an integral part of any manufacturing concern, and more so for those companies that provide a service. Often overlooked the payroll and personnel function could be said to be even more important than the cycles described in the previous units. Happy staff normally result in the work being done efficiently and effectively, in addition staff loyalty is often stronger in companies where staff are looked after compared to those where staff are treated as just another number.