Benefits and Challenges of Establishing a Company (Grade 11 NSC Matric Business Studies): Flashcards
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Separate legal identity for companies
Separate legal identity for companies
Can own assets, enter contracts under its own name
Limited liability protection for shareholders
Limited liability protection for shareholders
Personal assets safe; only lose invested share money
Profit distribution method in companies
Profit distribution method in companies
Dividends based on number of shares owned
Continuity of existence meaning
Continuity of existence meaning
Company operates despite ownership/management changes
CIPC full name
CIPC full name
Companies and Intellectual Property Commission
Pty Ltd indicates
Pty Ltd indicates
Private companies
Main taxation challenge for companies
Main taxation challenge for companies
More complex obligations than other business forms
Directors lacking personal stakes risk
Directors lacking personal stakes risk
Reduced motivation to maximise growth and profits
Company capital advantage
Company capital advantage
Multiple investors can provide startup capital
Key document to establish a company
Key document to establish a company
Memorandum of incorporation