Business Studies

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NATURE

- Sets out the rules and regulations employers, employees and for labor unions and the setting of disputes

PURPOSE

- Promote simple procedures for the resolution of labor disputes

- Promote and facilitate collective bargaining at the workplace

- Rights to strike and the recourse to lock out are regulated by LRA

FUNCTIONS OF TRADE UNIONS

- Represent the employees in meetings and disputes with employees

- Protect employees from discrimination and abuse

- Protect employees from unfair labor practices and unfair dismissals

- Educate employees about their rights and how to enforce these rights

- Take legal actions on behalf of the members when necessary

BUSINESS VENTURES

Limited liability

- Shareholders/ owners/ possessions/ assets are protected in the event that the business becomes isolated or is liquidated

- Shareholders cannot lose more than what they have invested in the business

- The enterprise is responsible for the debts of the business

Unlimited liability

- The assets are attached to the business

- The owner or partners can lose everything and even more in what they have invested in the business

- The partners/ owners are responsible for the debts of the business

Number of

owners

How they are

taxed

Who

Manages it

Documents

Required to

Start it

Name

Sole proprietor

1

Owner pays Tax in a

Personal capacity

owner

No

Documents

required

no restrictions

Partnership

2 or more

Partners pay their

personal capacity on

the profits earned

from the partnership

partners

Requires a

partnership

agreement

No restrictions

Close

corporation

1-10

Pays tax at a fixed

rate, and has more

Opportunities to pay

less tax and claim

expenses

More than one

manager

Must end in CC

Co-operative

5 or more

Must be registered

With SARS and liable

For tax

shareholders

No restrictions

company

1 or more

Companies have more

Opportunities to pay

Less tax

Manager is

selected

Memorandum of

Incorporation/

Notice of

Incorporation in

needed

(Pty) Ltd

Ltd, Inc

(SOC) Ltd

NPC

FRANCHISING

- Creation of an ongoing relationship where a franchiser sells the right to use a business concept that is already being used elsewhere to a franchisee for use in a particular area

Role players in a franchise

FRANCHISEE

- When a person buys a franchise

FRANCHISOR

- Franchisee pays a royalty on the years turnover to the franchisor

LEESING

- When the owner of the asset agrees to allow the lessee to use the asset for a specific amount of time for a fee

LEESE

- A business agreement that allows the use of an asset for a specific period for a fee

LESSEE

- The person or business that pays to use the asset for a period of time

LESSOR

- The person or business that allows the lessee to pay to use the