Business Structures in Pre-Colonial South Africa

<p>British East India Company and Dutch East India Company (D)</p> Signup and view all the answers

<p>Customary law and oral traditions (C)</p> Signup and view all the answers

<p>Customary law founded on oral traditions (A)</p> Signup and view all the answers

<p>Barter trading of manufactured goods (A)</p> Signup and view all the answers

<p>Companies were well-governed by strong legal frameworks (C)</p> Signup and view all the answers

<p>To establish laws governing business entities. (A)</p> Signup and view all the answers

<p>Companies Act No 61 of 1973 (B)</p> Signup and view all the answers

<p>Principle of subsidiary (D)</p> Signup and view all the answers

<p>To modernize business law in South Africa (A)</p> Signup and view all the answers

<p>It was inspired by a UK policy on small company incorporation. (D)</p> Signup and view all the answers

<p>Fundamental legal developments affecting companies. (B)</p> Signup and view all the answers

<p>They were abandoned or substantially modified (A)</p> Signup and view all the answers

<p>Higher standards of transparency and disclosure (C)</p> Signup and view all the answers

<p>1926 (B)</p> Signup and view all the answers

<p>It was similar to historical English company laws. (A)</p> Signup and view all the answers

<p>April 8, 2009 (D)</p> Signup and view all the answers

<p>19th century colonial laws (B)</p> Signup and view all the answers

<p>It closely mirrored British company law foundations. (D)</p> Signup and view all the answers

<p>It provided a simplified incorporation process for small businesses. (C)</p> Signup and view all the answers

<p>The Companies Act 71 of 2008 (D)</p> Signup and view all the answers

<p>Less governmental oversight (A)</p> Signup and view all the answers

<p>Unlimited liability for all business debts (A)</p> Signup and view all the answers

<p>They could be sold to cover business debts (C)</p> Signup and view all the answers

<p>Debts exceeding personal assets (C)</p> Signup and view all the answers

<p>The owner of the business (C)</p> Signup and view all the answers

<p>No, it is automatically registered under the owner's personal tax (B)</p> Signup and view all the answers

<p>Loss of personal assets (C)</p> Signup and view all the answers

<p>Obligations to inform parties about trading as a sole proprietorship (A)</p> Signup and view all the answers

<p>Inform the public they are a sole proprietorship (B)</p> Signup and view all the answers

<p>The owner is personally liable for business debts. (B)</p> Signup and view all the answers

<p>Profits belong to the owner. (D)</p> Signup and view all the answers

<p>Only certain industries require licenses. (B)</p> Signup and view all the answers

<p>By looking at the owner's credit history and net worth. (C)</p> Signup and view all the answers

<p>A sole proprietor cannot sell shares or interests in the business. (A)</p> Signup and view all the answers

<p>It has lower startup costs due to minimal registration requirements. (D)</p> Signup and view all the answers

<p>Keeping accurate business accounting records. (D)</p> Signup and view all the answers

<p>The debt is solely the owner's responsibility. (D)</p> Signup and view all the answers

<p>ITR12 (D)</p> Signup and view all the answers

<p>They are required to become a VAT vendor. (C)</p> Signup and view all the answers

<p>When their provisional payments are less than required levels. (A)</p> Signup and view all the answers

<p>Having a large tax debit on assessment. (C)</p> Signup and view all the answers

<p>If they earn additional income from a side business. (D)</p> Signup and view all the answers

<p>Value Added Tax (D)</p> Signup and view all the answers

<p>All income and expenses are reported on the proprietor's personal tax return. (B)</p> Signup and view all the answers

<p>They might be required to pay an additional penalty. (C)</p> Signup and view all the answers

The period before European colonization in South Africa, characterized by rudimentary business structures based on barter trade and customary law.

A form of trade where goods and services are exchanged directly without the use of money.

Traditions and customs passed down orally from generation to generation, shaping social norms and legal principles.

A philosophical concept emphasizing moral principles, collective responsibility, and shared humanity.

The period of British and Dutch colonial rule in South Africa, marked by the introduction of Western legal systems and the rise of mercantilism.

An economic system focused on maximizing wealth and control over trade, often through colonial expansion.

The period following South Africa's independence, characterized by the establishment of a new constitution and the development of a modern legal framework.

A legal framework based on a written constitution and the rule of law, emphasizing individual rights and democratic principles.

A simple business structure with one owner who is personally liable for all debts and profits.

No formal registration is required, but certain industries may need licenses.

The owner manages the business, including obtaining licenses, keeping financial records, employing staff, and filing taxes.

The business is not a separate legal entity; the owner is personally responsible for all debts and liabilities.

All profits belong to the owner, and the owner is responsible for all losses.

A sole proprietor can hire employees and engage in a variety of business activities.

Banks evaluate the proprietor's creditworthiness and financial history when considering a loan.

The owner cannot sell shares or ownership in the business.

The principle of subsidiary states that courts should avoid deciding cases based on constitutional issues if a resolution can be reached through existing laws and regulations.

The Companies Act of 2008 is a key piece of legislation that modernizes South African business law, promoting transparency, accountability, and corporate governance.

The South African law regarding business entities has been undergoing a significant transformation, embracing more modern principles and standards in line with global trends.

Section 22 of the South African Constitution protects the right to choose work, occupation, and profession. However, in commercial disputes, the focus is on existing legislation like the Companies Act.

The shift from traditional business law principles to more modern ones in South Africa, reflecting the changing global environment and the demands of today's business world.

An emphasis on increased transparency, accountability, and ethical conduct in business practices, particularly in light of the constitutional dispensation.

The need for clear and transparent information about a company's operations and financial status, promoting investor confidence and trust.

The first national law in South Africa that governed incorporating businesses. Its aim was to establish a framework for companies and to prevent the abuse of corporate powers.

Although it aimed for innovation, this Act was largely based on English law, mirroring the UK model in its structure

This law brought a unique structure to South Africa, a departure from UK models, allowing for smaller businesses with more flexible ownership

This document, adopted in 1996, fundamentally changed the legal landscape of South Africa, and influenced the subsequent developments in company law

The evolution of business law in South Africa mirrors the country's political and social changes.

Prior to national legislation, individual provinces had their own laws governing business formation. These laws were often based on English models.

All income and expenses from a sole proprietorship are added to the owner's personal income tax return and taxed with their other income.

The form used by sole proprietors to file their annual income tax return.

A sole proprietor must register for VAT when their annual turnover exceeds R1 million.

A tax levied on the consumption of goods and services within a country.

A sole proprietor may face penalties for underpaying provisional tax.

A system for paying income tax liability in advance, ensuring no large tax debt at the end of the year.

A sole proprietor who is also a salaried employee must register for provisional tax.

Provisional tax is not a separate tax; it's a way to pay income tax liability before the final assessment.

The owner of a sole proprietorship is personally responsible for all business debts and obligations, even if they are caused by employees or agents.

If a sole proprietorship's debts exceed its assets, the owner's personal assets can be used to cover the difference, potentially leading to bankruptcy.

A sole proprietorship is not a separate legal entity; the business is essentially an extension of the owner, meaning the owner is directly responsible for all business activities.

Sole proprietorships are not required to register with SARS as a separate entity. The owner's personal registration covers the business.

While a sole proprietorship isn't a legal entity, it can adopt a business name to operate under. However, the owner must clearly inform others that they are operating as a sole proprietorship to avoid confusion.

Even if a sole proprietorship adopts a trade name, the owner remains personally liable for all debts and obligations, as the business is not a separate legal entity.

The owner of a sole proprietorship should ensure adequate insurance coverage to protect themselves from potential losses or lawsuits related to the business.

Sole proprietorship is a simple and straightforward business structure, but it carries significant financial risk for the owner due to unlimited liability.

A sole proprietorship's debts are considered the owner's personal debts, meaning creditors can pursue collection actions directly against the owner's personal assets.