Financial Reporting Quiz

What are the two categories of business forms in South Africa?

• Small and Large

• Incorporated and Unincorporated

• Public and Private

• Profit and Non-Profit

What is the main difference between an Incorporated and Unincorporated business form?

• Number of employees

• Type of products sold

• Ownership of assets and liabilities

• Location of the business

What is a Shareholder in a company?

• Someone who invests in the company

• Someone who buys products from the company

• Someone who owns a share in the company

• Someone who works for the company

What are Voting Rights of shareholders used for?

• Hire new employees

• Sell company assets

• Appoint directors

• Approve company expenses

What is the purpose of dividends for shareholders?

• To reduce company taxes

• To pay off company debts

• To increase company expenses

• To distribute profits to shareholders

What is required for a motion to be approved in an AGM?

• No vote needed

• Majority vote

• Only one shareholder's approval

• Unanimous vote

Who can pass a motion with a general resolution?

• Majority of shareholders

• One shareholder with majority shares

• All shareholders

• Board of directors

What is the right of shareholders upon liquidation of a company?

• Right to company profits

• Right to company assets

• Right to company expenses

• Right to company debts

A company has 780 900 shares active. Rosina is a shareholder and would like to pass a general resolution at the next AGM. How many shares would Rosina need to have to pass a general resolution?

(a)  

John and Alyssa own a business. This is a form of an _____(a)_____ business form and is classified as a _____(b)_____.

(a) Incorporated/Unincorporated/Corporation
(b) Sole trader, partnership, or company

• Incorporated,

  Sole trader

• Unincorporated, Company

• Partnership, Corporation

• Unincorporated Partnership