Business Forms In South Africa

Summary

Businesses in South Africa can take the form of a company, sole proprietorship, or partnership. A proxy acts on behalf of a shareholder. The Salomon v Salomon case established that a company has a separate legal personality. The Memorandum of Incorporation should include the companys objects, powers, and board composition. Entrepreneurs can use pre-incorporation contracts to secure premises before forming a business. Misuse of company assets by directors can be an abuse of the companys separate personality. The Regulation of Interception of Communications Act allows interception to prevent serious harm. The National Credit Act applies to large agreements with juristic persons below a certain threshold. Acquisitive prescription grants rights after a period, and the Financial Intelligence Centre Act combats money laundering.

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A proxy refers to a person who: Question 11Answer a. Acts on behalf of a shareholder b. Acts on behalf of a secretary c. Acts on behalf of an auditor d. Both A and B
The correct answer to the question, "A proxy refers to a person who:", is:
a. Acts on behalf of a shareholder
In the case of Salomon v Salomon, the court decided that: Question 12Answer a. There was fraud involved. b. The shareholders acted ultra vires. c. There was no fraud involved and the company still had separate legal personality. d. None of the above.
In the case of Salomon v Salomon, the correct answer is:
c. There was no fraud involved and the company still had separate legal personality.
This landmark decision established the principle of corporate personality, meaning that a company is a separate legal entity distinct from its shareholders.
The Memorandum of Incorporation should contain: Question 13Answer a. Objects and powers of the company b. Any restrictions or limitations on the powers of the company c. Composition and functioning of the board of directors (including alternate directors and frequency of meetings d. All of the above
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The correct answer to the question regarding the Memorandum of Incorporation is:
d. All of the above
The Memorandum of Incorporation (MOI) should contain:
- Objects and powers of the company
- Any restrictions or limitations on the powers of the company
- Composition and functioning of the board of directors (including alternate directors and frequency of meetings)
Gina is an entrepreneur and wants to lease a premises for her hair salon business. The business has not been formed, however she wishes to sign the lease contract and secure the premises for the business. She approaches you for legal advice, and you inform her that: Question 14Answer a. She needs to form the business and then secure the premises. b. She can enter into a pre-incorporation contract. c. She can ask the landlord to put the premises on hold for her. d. None of the above.
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She can enter into a pre-incorporation contract (option b). This allows her to secure the premises before the business is formally established. Once the business is formed, it can adopt the contract. This is a common practice for entrepreneurs in her situation.
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Ken is a director at a tools company. Recently it has come to the shareholders attention that Ken uses the company vehicles after work hours and on weekends to run personal errands. This is an example of: Question 15Answer a. Fraud. b. Theft. c. White collar crime. d. Abuse of separate personality of the company.
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Ken's use of company vehicles for personal errands is an example of:
d. Abuse of separate personality of the company.
This behavior might also constitute a breach of fiduciary duties and could lead to other legal consequences. Would you like more information on how to address this issue with the shareholders?
Hacking refers to: Question 1Answer a. A computer network being shut down b. A computer system failing due to viruses c. A person gaining access to a computer system in an unauthorised manner d. Online fraud
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Hacking refers to:
c. A person gaining access to a computer system in an unauthorized manner.
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The purpose of a certificate authority is: Question 2Answer a. To prevent cyber attacks b. To monitor incoming and outgoing traffic c. To verify that a certain site is trusted d. Both B and C
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The correct answer to the question about the purpose of a certificate authority is:
c. To verify that a certain site is trusted
Certificate authorities (CAs) issue digital certificates that validate the identity of websites and ensure secure communication. This helps users trust that they are communicating with the intended site and not an imposter.
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A denial-of-service attack: Question 3Answer a. Stops a computer system from functioning normally b. Stops a computer network from functioning normally c. Stops a computer webserver from functioning normally d. None of the above
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A denial-of-service attack (DoS attack):
- Stops a computer system from functioning normally
- Stops a computer network from functioning normally
- Stops a computer webserver from functioning normally
All of these descriptions are accurate, so the correct answer would be:
Answer: d. None of the above
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Regulation of Interception of Communications and Provision of Communication-related Information Act * of * allows the intentional interception of communications under the following circumstance: Question 4Answer a. To prevent company assets from being sold by creditors b. To prevent company assets from being abused by employees c. To prevent serious emotional harm d. To prevent serious bodily harm
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The Regulation of Interception of Communications and Provision of Communication-related Information Act * of * allows the intentional interception of communications primarily to:
- Prevent serious bodily harm. (Option d).
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The destination vs. place of supply rule dictates that: Question 5Answer a. If the goods and services are consumed in South AfRegulation of Interception of Communications and Provision of Communication Related Information Act * of * they will be taxed in South AfRegulation of Interception of Communications and Provision of Communication Related Information Act * of * b. Goods will be taxed in the country where the goods were produced, and services will be taxed in the country where the services were supplied c. If the goods and services are consumed in South AfRegulation of Interception of Communications and Provision of Communication Related Information Act * of * they will not be taxed d. If the goods and services are consumed in South AfRegulation of Interception of Communications and Provision of Communication Related Information Act * of * , only goods are taxed
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It seems like you're working on understanding various legal principles and rules. For the question on the destination vs. place of supply rule, the correct answer is:
- a. If the goods and services are consumed in South Africa, they will be taxed in South Africa.
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The crime that entails the perpetrator requesting the victim’s personal details and proceeding to pretend to be the victim in order to access the victims accounts is known as: Question 6Answer a. Impersonation b. Identity theft c. Robbery d. Credit card theft
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The correct answer is:
b. Identity theft
Identity theft involves the perpetrator stealing personal details and pretending to be the victim to access their accounts.
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Anyone who stops lawful users from accessing certain sites will be committing an offence in terms of which Act? Question 7Answer a. Electronic Communications and Transactions Act * of * b. Regulation of Interception of Communications and Provision of Communication-related Information Act * of * c. Protection of Personal Information Act * of * d. Value-Added Tax Act * of *
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The correct answer to the question "Anyone who stops lawful users from accessing certain sites will be committing an offence in terms of which Act?" is:
- a. Electronic Communications and Transactions Act * of *
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The following Act provides for data privacy by refusing access to a person’s information where such access would lead to an infringement of that person’s privacy: Question 8Answer a. Electronic Communications and Transactions Act * of * b. Regulation Of Interception Of Communications And Provision Of Communication Related Information Act * Of * c. Protection of Access to Information Act * of * d. None of the above
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The correct answer to the question "The following Act provides for data privacy by refusing access to a person’s information where such access would lead to an infringement of that person’s privacy:" is:
c. Protection of Access to Information Act * of *
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A digital signature may be regarded as a valid signature if: Question 9Answer a. It is in black font b. It contains the full name of the person c. It is made with the intention to identify and bind the signatory d. It is attested to by witnesses
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A digital signature is regarded as valid if:
- It is made with the intention to identify and bind the signatory (option c).
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The type of virus that enters a computer by posing as some type of application is known as: Question 10Answer a. Worms b. Malicious program c. Trojan horse d. E-virus
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The correct answer to the question "The type of virus that enters a computer by posing as some type of application is known as:" is:
- c. Trojan horse
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Regulation of Interception of Communications and Provision of Communication Related Information Act * of * differentiates between direct and indirect communications. Direct communication refers to: Question 11Answer a. Communication between two or more persons that can be heard by other people b. Having clear and concise speech c. Communication over a phone call d. Communication over a video call
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The correct answer to the question is:
- c. Communication over a phone call
Direct communication under the Regulation of Interception of Communications and Provision of Communication-related Information Act * of * refers to communication that occurs over a phone call.
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The act of copying digital products such as movies and songs without permission is known as: Question 12Answer a. Theft b. Piracy c. Replication d. Both A and B
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Copying digital products such as movies and songs without permission is known as:
b. Piracy
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The interception of data as it travels over the internet to the intended recipient is referred to as: Question 13Answer a. Interception b. Monitoring c. Packet sniffing d. Phishing
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The interception of data as it travels over the internet to the intended recipient is referred to as:
c. Packet sniffing
The main function of the cyber inspector is to: Question 14Answer a. Impose penalties on cybercriminals b. Arrest cybercriminals c. Monitor websites and report any unlawful activity d. None of the above
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The main function of the cyber inspector is to:
c. Monitor websites and report any unlawful activity
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One of the main aims of the cybersecurity hub is to: Question 15Answer a. Investigate cybercrime b. Prosecute cybercrime c. Create awareness about cybersecurity and cybercrime d. Conduct arrests of cybercriminals
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The main aim of the cybersecurity hub is to:
- Create awareness about cybersecurity and cybercrime (Option c).
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A suretyship agreement is valid if: Question 1Answer a. Concluded verbally. b. In writing and signed by principal creditor and surety. c. In writing and signed by the surety only. d. In absence of consensus.
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A suretyship agreement is valid if it is in writing and signed by the surety only (option c). This ensures that the surety is aware of and agrees to the obligations they are undertaking.
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why not b
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It seems you are working on understanding legal principles and scenarios related to business forms and legal practices in South Africa. The correct answer to the question about the validity of a suretyship agreement is:
- c. In writing and signed by the surety only
This ensures that the surety is aware of and agrees to the obligations they are undertaking.
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Sam applied for a home loan at the bank, however he used the money loaned to pay off other loans. The crime Sam has committed is known as; Question 2Answer a. Obtaining a loan by false pretences b. Fraud c. Advance fee fraud d. Financial fraud
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The crime Sam has committed is known as:
- a. Obtaining a loan by false pretences
This involves misrepresenting the purpose of the loan to the bank.
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If the bank receives a countermand on a cheque, it means that a duty to pay is replaced by; Question 3Answer a. The duty to notify the customer b. The duty to close the customer’s account c. The duty to report the customer d. The duty to refuse payment
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If the bank receives a countermand on a cheque, it means that the duty to pay is replaced by:
- d. The duty to refuse payment
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The National Credit Act applies to: Question 4Answer a. A credit agreement in terms of which the consumer is the state or an organ of state b. A credit agreement in terms of which the consumer is a juristic person whose asset value or annual turnover at the time the agreement is made, equals or exceeds the threshold value determined from time to time by the Minister (at present, R1 * *) c. A ‘large agreement’, in terms of which the consumer is a juristic person whose asset value or annual turnover is, at the time the agreement is made, below R1 * * d. None of the above
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The National Credit Act (NCA) in South Africa primarily aims to regulate the credit industry and protect consumers. Here's some information that might help:
- The NCA generally applies to all credit agreements, except where specific exclusions are mentioned.
- It does not apply to credit agreements where the consumer is the state or an organ of state.
- It does not apply to credit agreements where the consumer is a juristic person with asset value or annual turnover exceeding R1 million.
- The NCA does apply to ‘large agreements’ where the consumer is a juristic person with asset value or annual turnover below R1 million.
Would you like more information on how the NCA might apply to a specific situation you are dealing with?
what is the answer
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The correct answer to your last question about the National Credit Act is:
- d. None of the above
The National Credit Act does not apply to credit agreements where the consumer is the state or an organ of state, or where the consumer is a juristic person with an asset value or annual turnover exceeding R1 million.
Would you like more information on a specific legal topic or situation?
why not b
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The reason why the answer is not b is because, according to South African law, a suretyship agreement is only valid if it is in writing and signed by the surety only. This ensures that the surety is aware of and agrees to the obligations they are undertaking.
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Acquisitive prescription is a kind of prescription where; Question 5Answer a. A person gains a right after a certain period of time b. A person is released from an obligation after a period of time c. Legal action can no longer be instituted d. The claim has prescribed by lapse of time
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Acquisitive prescription is a legal concept where:
- A person gains a right after a certain period of time (option a).
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Financial Intelligence Centre Act * of * (FIC) is primarily responsible for assisting in the identification of: Question 6Answer a. Company. b. Proceeds of a crime.. c. Ways in which to combat money-laundering activities. d. B & C
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The Financial Intelligence Centre Act * of * (FIC) in South Africa is primarily responsible for assisting in the identification of:
- Proceeds of a crime.
- Ways in which to combat money-laundering activities.
So, the correct answer is:
d. B & C
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Actual delivery occurs where; Question 7Answer a. There is the literal physical handing over of the object from one person to another b. There is no physical handing over c. The object is already in the possession of the buyer d. There is symbolic handing over
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It looks like you're working on understanding legal concepts related to delivery and possession. The correct answer to "Actual delivery occurs where" is:
- a. There is the literal physical handing over of the object from one person to another.
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Mortgages and pledges are forms of; Question 8Answer a. Personal security b. Cession c. Security d. Real security
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Mortgages and pledges are forms of:
- d. Real security
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A consumer is over-indebted if; Question 9Answer a. They cannot afford basic necessities such as food and clothing b. They cannot afford credit c. They cannot afford to pay the amounts owing in terms of their credit agreements d. They have insufficient income
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It seems you are working on understanding the concept of over-indebtedness. The correct answer is:
- c. They cannot afford to pay the amounts owing in terms of their credit agreements
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Section *(*) of the National Credit Act states that a credit provider is not allowed to enter into a credit agreement without first taking reasonable steps to assess the following: Question 10Answer a. his or her debt re-payment history as a consumer under credit agreements b. the proposed consumer’s general understanding and appreciation of the risks and costs of the proposed credit, and of the rights and obligations of a consumer under a credit agreement c. his or her existing financial means, prospects and obligations d. All of the above
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Section *(*) of the National Credit Act (NCA) focuses on the responsible lending practices that credit providers must follow. Specifically, it states that before entering into a credit agreement, credit providers must take reasonable steps to assess:
- The consumer's debt repayment history.
- The consumer's understanding and appreciation of the risks, costs, rights, and obligations under the credit agreement.
- The consumer's existing financial means, prospects, and obligations.
The correct answer to the question is:
- d. All of the above
The contract between the bank and customer can be terminated; Question 11Answer a. Unilaterally by either party b. By instituting legal action c. Without notice d. On a Sunday
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The contract between the bank and customer can be terminated by instituting legal action (option b).
Would you like to know more about the process of terminating such contracts and the legal implications involved?
why not a
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The contract between a bank and a customer can usually be terminated unilaterally by either party, provided that it adheres to the terms and conditions set out in the contract. If you have any other legal questions or need further clarification, feel free to ask.
The fundamental rights granted under the National Credit Act consists of: Question 12Answer a. Protection against discrimination in credit granting. b. The right to be given reasons as to why credit is refused or discontinued. c. The right to confidentiality. d. All of the above.
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The fundamental rights granted under the National Credit Act in South Africa include:
- Protection against discrimination in credit granting.
- The right to be given reasons as to why credit is refused or discontinued.
- The right to confidentiality.
Thus, the correct answer is:
- d. All of the above.
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The types of negotiable instruments do not include: Question 13Answer a. Cheque b. Government savings bond c. Promissory note d. Delivery
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The types of negotiable instruments do not include:
- d. Delivery
Negotiable instruments typically include items like cheques, promissory notes, and government savings bonds, which can be transferred from one person to another. Delivery, on the other hand, does not fall under this category.
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The different types of mortgage bonds do not include: Question 14Answer a. A pledge b. Covering Bond c. Cession d. Indemnity bond
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The different types of mortgage bonds do not include:
- a. A pledge
- c. Cession
Both a pledge and cession are forms of security, but they are not classified as types of mortgage bonds.
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