Professional Documents
Culture Documents
Topic 6 Notes
Topic 6 Notes
Topic 6 Notes
aspects
Hannelize Jacobs
Chapter 6:
Resource requirements,
and legal and related
aspects
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LEARNING OUTCOMES
https://www.dumblittleman.com/theory-scarcity-can-change-life/
Financial resources
– Equity finance
– Debt finance
Group
logical tasks
Determine
qualification Hire
Physical resources
– Fixed assets
– Location! Location! Location!
– Raw materials
– General supplies
Information resources
– External environment
– Internal working of business
Sole proprietorship
– One owner
– Owner is legal entity (not business)
– Limited statutory requirements – no audit
requirements,
– Easy to start
Partnership
Minimum of two and maximum of 20 partners
No major formalities
Partnership agreement
Requirements for a valid partnership agreement:
Partners must share common purpose of financial
gain.
The business must be handled for common
advantage of all its partners.
Each partner should contribute to the partnership.
Partnership
Partnership
Close corporation
– At least one and not more than 10 members
– Members must be natural persons
– A legal entity
– Act 26 of 1988
– Name of business with abbreviation CC
– Registered as a legal entity
– Minimum formation and administrative requirements
– Limited liability
– No board of directors
– Perpetual succession
Designs
– Registration essential
– Design Act grants protection for:
Aesthetic designs
Functional designs
– Registrar of Designs at CIPRO/BIPA
– Design registration gives the owner the right to prevent
others from making, importing, using or disposing of
the
article in South Africa
– Application need to filed for protection in other
countries
Patents
– The registered exclusive right of an inventor to make,
use or sell an invention
– Two types of patents
Design patent: the appearance of a product
Utility patent: a new process or function of a product
– Registrar of Patents (CIPRO) / BIPA
– 20 years protection
– Patents Act
– Patent Corporation Treaty
– Inventions marked with “Patent Applied For” or “Patent”
Trademarks
– Any work, phrase, symbol, design, sound, smell, colour,
product configuration, group of letters or numbers, or
combination of these, adapted and used by a business to
identify its products or service and distinguish them from
others
– Primary purpose: to prevent consumers form
becoming confused about the source or origin of a
product or
service
– Registrati
on at
CIPRO /
BIPA
– Registrati © VAN SCHAIK PUBLISHERS
LEGAL REQUIREMENTS FOR ESTABLISHING A
BUSINESS Intellectual property rights continued
Licensing arrangements
Licensing arrangements
– Licensing under trademark – Generally involves
franchising (paying royalties) e.g. Coca-Cola, Shell, KFC
etc.
Counterfeit goods
– The manufacturing, production or making of any goods,
in SA or elsewhere, without the authority of owner of the
intellectual property rights
– Counterfeit Goods Act
– Examples: Designer labelled clothing, chart-topping film
and music on video tapes, artistic works, computer
software
Trade licensing
– Businesses that need a trade license:
– Health facilities
– Food providers
– Entertainment facilities
– Escort agencies
– Adult shops Additional requirements
– Zoning
– Health
– Certificate of acceptability
– Liquor license
– Music usage license
Taxation
– Taxes in SA levied by South African Revenue Services
(SARS) and in Namibia by Namibia Revenue Agency
(NAMRA)
– Two main types of taxes:
Direct
Indirect
Two Types of
taxes
INDIRECT
DIRECT TAX TAX
https://www.namra.org.na/individual-tax/
page/i-earn-a-monthly-salary
(Namibia)
Compensation Fund
– Employees included
– Employees excluded
Standards
Environmental legislation
Credit regulation
Sole proprietorship
Partnership
Private company
Human resources
Information resource
Intellectual property rights
Labour Relations Act
Licensing
National Credit Act
Non-profit company
Occupational health and safety
Partnership
Patent
Pay-as-you-earn
Personal liability company
Physical resource
Private company
Product liability
Profit company
Promotion of Access to Information Act
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LOOKING BACK - ANSWERS
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4. Identify the main legal forms a profit company can
take in South Africa.
– State-owned companies
– Private company
– Personal liability company
– Public company
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9. What are the benefits of a trademark to
an entrepreneur?
– It prevents consumers from becoming confused
about the source or origin of an entrepreneur’s
product or service.
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11. What are the essential ingredients of an acceptable
written contract?
– The small print containing many stipulations and terms
of the agreement must be acceptable.
– The contracting party must not be a front company or
a representative of the real company.
– Legal advice should be obtained for the wording of
difficult agreements and for
understanding incomprehensible terms.
– All pages must be completed in full and signed by both
parties.
– A copy of the signed agreement must be provided for
safekeeping.
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12. List the conditions legislated by the Basic Conditions
of Employment Act.
– Working time
– Leave
– Job information and payment
– Termination of employment
– Child labour and forced labour
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Skills Development Levies Act:
– One per cent of the remuneration paid to directors of
a company and members of a close corporation must be
deducted and paid to the government as a skills
development levy at the end of each financial year.