Chapter 9 Forms Of Ownership

Question 0

Sole trader

Answer 0

No legal formalities, just a trading license 
Unlimited liability
No continuity 
Not a legal entity 
Any name
Owner pays income tax in personal capacity
Managed by owner
Owner takes all profits
Own or borrowed capital

Question 1

General characteristics

Answer 1

Procedure for formation
Liability 
Continuity
Legal entity
Name
Tax
Number of owners
MDC

Question 2

Partnership

Answer 2

No legal formalities, partnership agreement
Unlimited liability 
No continuity
Not a legal entity
Any name
Partners pay tax in personal capacity
2-unlimited partners
Managed by 1 or more
Profits according to partnership agreement
Contribute own/ borrowed capital

Question 3

Close corporation

Answer 3

Doesn’t exist anymore ;)

Question 4

Private company

Answer 4

MOI
Limited liability
Has continuity 
Is a legal entity
Pty(ltd)
Profit/dividends
1-unlimited shareholders
Managed by board of directors
Profits in form of dividends 
Capital by selling shares

Question 5

Public company

Answer 5

MOI
Limited liability
Has continuity 
Is a legal entity 
Ltd
Tax on dividends received
3-unlimited shareholders 
Min of 3 directors
Profits in form of dividends
Capital by selling shares