Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business Management > Chapter 17 Legal Aspects > Flashcards

Chapter 17 Legal Aspects Flashcards

1
Q

IMPORTANT ASPECTS IN ESTABLISHING A NEW VENTURE

A

REGISTRATION

NAME

REGISTERING A TRADEMARK

PUBLICIZING THE VENTURE

SOLE PROPRIETORSHIP AMD PARTNERSHIPS

COMPANIES

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

REGISTRATION OF THE BUSINESS

A

COMPANY: needs to be registered with the COMPANIES AND INTELLECTUAL PROPERTY COMMISSION

PARTNERSHIP: does not need to be registered but rather established in terms of a partnership agreement, drawn up by partners before startup

SOLE OWNERSHIP: the only for, of venture free from any formalities before it can start to operate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

ALL BUSINESSES MUST BE REGISTERED WITH THE FOLLOWING INSTITUTIONS

A

SARS: income tax, PAYE, SITE and VAT

DEPARTMENT OF LABOUR: unemployment insurance and workmen’s compensation

LOCAL AUTHORITIES: Licensing for trading I’m food/perishables, ownership of property and payment of appropriate levies

THE LOCAL GREATER METROPOLITAN SUBSTRUCTURES

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

NAMING THE BUSINESS VENTURE

A

1 - RESERVE a name for your business before it is established by the CIPC (known as defensive name)

2 - MAKE a list of up to 4 alternative names which will be considered for reservation in listed order

3 - ONLY ONE NAME MAY BE RESERVED

4 - APPLYING TO RESERVE A NAME WILL PREVENT SOMEONE ELSE FROM REGISTERING THAT SAME NAME

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

REGISTERED TRADEMARK

A

A TRADEMARK IS A BRAND NAME, SLOGAN OR LOGO THAT DEFINES THE G/S OF ONE PERSON AND DISTINGUISHES IT FROM THE OTHER

  • NO ONE ELSE CAN USE THE SAME TRADEMARK OR ONE THAT IS CONFUSINGLY SIMILAR
  • APPLY WITH CPIC TO REGISTER A TM
  • A REGISTERED TRADEMARK CAN BE PROTECTED FOREVER ( renewed every 10 years with renewal fee)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

PUBLICISING A BUSINESS VENTURE

A
  • FULL NAME OF THE BUSINESS MUST BE DISPLAYED OUTSIDE EACH OFFICE / PREMISES WHERE THE BUSINESS IS OPERATING
  • FULL NAME MUST BE DISPLAYED ON ALL NOTICES OR OFFICIAL PUBLICATIONS, CHEQUES, DELIVERY NOTES, INVOICES AND RECEIPTS

BEFORE YOU REGISTER A BUSINESS YOU MUST DECIDE ON THE TYPE OF ENTITY

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

SOLE PROPRIETORSHIP AND PARTNERSHIPS

A

NOT NECESSARY TO REGISTER EITHER

BUT YOU WILL NEED TO OPEN BANK ACCOUNT

  • SOLE PROPRIETORSHIPS ARE SUBJECT TO THE SAME TAX REGULATIONS, VAT AND LEVIES AS OTHER LEGAL ENTITIES
  • A LEGAL PARTNERSHIP IS A PREREQUISITE FOR THE ESTABLISHMENT OF A PARTNERSHIP
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

COMPANIES:

MEMORANDUM OF ASSOCIATION ENTAILS:

A

NAME OF THE COMPANY

DESCRIPTION OF MAIN PURPOSE

AMOUNT OF INITIAL REGISTERED SHARE CAPITAL

ANY POWERS OR AUTHORITY LEGALLY ENTITLED TO THAT NEED
TO BE EXCLUDED/ QUALIFIED

ADOPTION OF ANY PRE INCORPORATED CONTRACTS

SPECIAL T&C’s regarding operation of the company

ASSOCIATION CLAUSE STATING THE WISH TO FORM A COMPANY AND AGREEMENT TO TAKE UP SHARES

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

COMPANIES : ARTICLES OF ASSOCIATION

A

CONCERNED WITH THE INTERNAL MANAGEMENT OF THE COMPANY
- deals with aspects such as shares, lending powers, meeting procedures, voting rights

MUST BE SET OUT ON A PRESCRIBED FORM

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

REQUIRED DOCUMENTS FOR COMPANIES

A

FORM CM5 - stating the approved and reserved name and if necessary translated or abbreviated name

FORM CM22 - THE PHYSICAL OFFICE AMD POSTAL ADDRESS

A PROXY FROM EACH FOUNDING MEMEBER, AUTHORISING ANOTHER PERSON TO SIGN THE MEMORANDUM AND ARTICLES IF THEY ARE NOT GOING TO SIGN THEM PERSONALLY

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

CPIC WILL ISSUE A CERTIFICATE TO OPERATE AFTER RECEIVING:

A

AN APPLICATION FOR THE CERTIFICATE TO COMMENCE BUSINESS

A STATEMENT BY THE DIRECTORS TESTIFYING THAT THE ISSUED SHARE CAPITAL OF THE COMPANY IS SUFFICIENT TO CONDUCT ITS BUSINESS

THE PARTICULARS OF THE DIRECTORS

CONSENT FROM AUDITOR TO BE THE OFFICIAL AUDITOR OF THE COMPANY

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

SARS DEALS WITH THE FOLLOWING:

A

INCOME TAX ON INCOME DERIVED FROM OPERATING A BUSINESS

VAT

CAPITAL GAINS TAX

EMPLOYER REGISTRATION FOR PAYE

REGISTRATION FOR SKILLS LEVY

SMALL BUSINESS TAX AMNESTY

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

INCOME TAX

A

INCOME TAX IS PAYABLE BY EVERY INDIVIDUAL THAT DERIVES A TAXABLE INCOME

REQUIRED INDIVIDUALS TO A PAY A PROGRESSIVELY INCREASING RATE UNTIL A MAX OF 40% is reached, while companies and close corporations pay 28 %

RATES CHANGE FROM TIME TO TIME

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

DEDUCTIBLE EXPENSES (DART TAMAATI)

A

DEPRECIATION OR WEAR AND TEAR ALLOWANCE ON VEHICLES, EQUIPMENT AND ARTICLES USED IN BUSINESS

A PROPORTION OF THE PRIVATE HOME EXPENSES IF PART OF YOUR RESIDENCE IS USED FOR BUSINESS PURPOSES (rent, rates and telephone)

REVENUE EXPENDITURE ON SCIENTIFIC RESEARCH DONE DURING AND FOR THE DEVELOPMENT OF THE BUSINESS

TRAVELING EXPENSES

TRADE DEBTS THAT CANNOT BE RECOVERED

A 10 % initial allowance and a 2% annual allowance on the cost of erecting the buildings

Manufacturers may deduct depreciation of 20% per year on a straight line basis on plant and equipment

An allowance of 50% of the cost of building housing for employees

Any expenditure from improving land or building rented for business purposes

TWENTY FIVE % of the total debtors who are considered doubtful

INTEREST PAID ON LOANS FOR THE PRODUCTION OF INCOME

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

VAT

A
  • BUSINESSES WITH AM ANNUAL TURNOVER OVER 150k MUST REGISTER FOR VAT
  • should be calculated on a regular basis and returns submitted to SARS on a standardized form.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

CAPITAL GAINS TAX

A

DESCRIBED AS THE DIFFERENCE BETWEEN THE BASE COST OF A SPECIFIC ASSET AND THE CONSIDERATION REALIZED UPON DISPOSAL OF SUCH AN ASSET

  • Net capital gain should be included in the entrepreneurs income for the year of assessment
17
Q

REGISTRATION FOR SKILLS LEVY

A

BUSINESSES ARE REQUIRED TO REGISTER WITH THIER SECTOR EDUCATION AND TRAINING AUTHORITY FOR THE SKILLS DEVELOPMENT LEVY

  • The levy equates to 1% points the total amount paid in salaries to employees when payroll is above R500k a year, must be paid no later than 7 days after the end of every month
18
Q

Small Business and Tax amnesty

A

THIS ACT EMPOWERS THE TAX COMMISSIONER TO APPROVE APPLICATIONS FOR TAX AMNESTY IN RESPECT OF APPLICANTS WHO APPLY FOR TAX AMNESTY

APPLICANTS MUST PAY A LEVY FOR TAX AMNESTY AND ARE FIR THE BENEFIT FOR THE NATIONAL REVENUE FUND

19
Q

CONTRACTS

A

A CONTRACT IS DEFINED AS ANY AGREEMENT BETWEEN TWO OR MORE PERSONS AND IS BINDING BY LAW

20
Q

ASPECTS OF A CONTRACT INCLUDE :

A

PHYSICAL POSSIBILITY: T&C’s must be realistic

LEGALITY: MUST BE LEGALLY POSSIBLE

CONSENSUS: CONSCIOUS AGREEMENT OF T&Cs

CONTRACTUAL CAPACITY: EACH PARTY MUST HAVE THE CAPACITY TO ACT

FORMALITIES: THESE ARE PRESCRIBED FOR THE FORMATION OF THE CONTRACT

21
Q

DEFECTIVE CONTRACTS

A

Void contract: one of the requirements is absent or no contract concluded

Voidable contract: a contract that was concluded can be set aside due to a defect that existed at the time of conclusion

Unenforceable Contract: contract has been concluded but creates a natural obligation recognized but not enforced by law

22
Q

ENTREPRENEURS AND THE NATIONAL CREDIT ACT (Credit providers)

A

ENTREPRENEURS WHO SUPPLY G/S under a credit agreement who advance credit under a pawn transaction or extend credit under a credit facility need to be registered as credit providers

  • ENTREPRENEUR NEEDS TO REGISTER AS A CREDIT PROVIDER IF THEY HAVE ATLEAST 100 CEDIT AGREEMENTS
  • CREDIT PROVIDERS MAY NOT ENTICE PROSPECTIVE DEBTORS IN ANYWAY
  • THIS ACT HAS STRICT CREDIT ADVANCING REGULATIONS AND PROVIDE THE CONSUMER WITH AN ARRAY OF RIGHTS SHOULD THEY NOT BR ABLE TO REPAY THE CREDIT AMOUNT
23
Q

APPLICANTS FOR CREDIT PROVIDERS ARE EVALUATED ON:

A

THE APPROPRIATENESS OF REGISTERING THE APPLICANT BASED ON A SPECIFIC CRITERIS

THE COMMITMENTS MADE BY THE APPLICANT IN COMBATING OVER INDEBTEDNESS

WEATHER THE APPLICANT IS REGISTERED WITH SARS

24
Q

ASPECTS OF THE CONSUMER PROTECTION ACT

A
  • Customers have the right to cancel any prebooking without being penalized
  • Fixed term agreements cannot be automatically renewed
  • Customers can cancel a fixed term agreement at any time with a 20 day notice beforehand
  • Businesses must give a quote before work is done
  • Consumes may return unsafe or defective goods within 6 months of purchase
  • Mandatory 3 month warranty on installed repair work
  • No obligation to pay for unfrequented goods
  • All agreements must be in plain language
25
Q

PATENTS DESIGNS AND COPYRIGHTS

A

PATENT: an exclusive right granted for an invention which is a product or process that provides a new way of doing something. Provides protection for 20 years.

COPYRIGHT: Protection for various output of entrepreneurs including literary, artistic or musical works or computer programs

NOT INVENTIONS:

A discovery, scientific theory or mathematical method

Literary, musical or any artistic or aesthetic creation

A scheme for performing a mental act

A computer program

Business Management (13 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions