Introduction To Corporations Flashcards
0
Q
Explain the role of an external auditor
A
An independent accountant appoint enter by the shareholders to review and report the companies records.
1
Q
What is a company?
A
A business organisation set up as a separate legal entity in terms of the corporations act 2001
2
Q
What are company shares?
A
Units of owners equity in a company, which may be bought and sold and entitle the holder to participate on decision making process of company and share in profit.
3
Q
What is a reserve?
A
Company profits retained witching the business for a purpose. Retained earning or gains in value of asset
4
Q
A dividend is …
A
The amount decided by the directors to be paid to the shareholders as their share of the company’s profit.
Dividend is proportional to members shareholdings.
