Mercantile Law N5 — Document
June 2021 — N5 — Mercantile Law
N5
2021
Nated Business
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Q1— Section header —
1.10in the ANSWER BOOK.
1.2A personal liability contract is a public company. mainly used by professional associations. a non
1.3The type of share that will receive a dividend after payment to ordinary shareholders: Issued share Deferred share
1.4The report that reflects the financial position of a company: Cash flow statement Auditors
1.5The document that regulates the internal regulations of a lose orporation:
1.6Choose the INCORRECT option Characteristics of suretyship: A real right
1.7An asset that does not form part of the insolvent s sequestrated estate: Remuneration for work done after sequestration Remuneration for work done before sequestration
1.8liable for the debts of the partnership. pro rata in solidum only percentage
1.9This doctrine determines that where a bona fide outsider transacts with a representative of a company, the third person can assume that all internal requirements and procedures have been complied with.
1.10Individuals who initiate the establishment of a company: Directors Shareholders Promotors
Q2— Section header —
2.10\n the ANSWER BOOK.
2.1A pledge is a personal right.
2.2A partnership is not a legal entity.
2.3Directors are appointed to run a lose orporation.
2.4Brokers are appointed to negotiate a contract for a seller.
2.5A surety can be liable for more than the principal debt.
2.6Mortgages and pledges are conventional securities.
2.7A pledge agreement between parties must be in writing. 13030105 Copyright reserved Please turn over
2.8hypothec is created by operation of law.
2.9Non profit companies must have at least two directors.
2.1010
Q3— Section header —
3.10\n the ANSWER BOOK. COLUMN A COLUMN B
3.10A real right A lien Salvage lien A voidable disposition Income tatement Balance
Q4— Section header —
4.1Negotiorum estor
4.2Benefit of division
4.3Improvement lien
4.4Rehabilitation
4.510
Q5— Section header —
5.1Pule, Constance and Jabu want to start a business of manufa cturing and selling bed linen. The ir business will be in Durban. They have agreed that Pule will contribute R250 000 to buy the linen, Jabu will do the sewing and
5.1.1
5.1.2List the FIVE rights of Pule, Constance and Jabu. (5\
5.1.3
5.1.4
5.2Nowadays creditors will always try to get some security for money or any other obligations due to him or her. One way of doing so is by obtaining a pledge. With regard to this statement
5.2.1Define a pledg (4\
5.2.2List the THREE requirements for the existence of a pledge. (3\
5.2.3
5.2.450
Q6— Section header —
6.1What kind of company is this? (1\
6.2How many directors must be appointed for this company? (1\
6.3What will be the most important document of this company? (1\
6.4List the THREE kinds of shares that can be issued. (3\
6.5Briefly discuss any FOUR characteristics of debentur es. (4 2\ (8\
6.6Which document is issued to invite possible investors to buy shares? (1\
6.7
6.8
6.9This type of company must appoint an audit committee. Who can serve on this committee? (2\
6.10List any FIVE duties of an audit committee. (5\
6.1150
Q7— Section header —
7.1Thuli establishe d a Close Corporation in 2007. Her business is still going strong, but she is considering converting her business into a private company.
7.1.1
7.1.2List FIVE ways in which the membership of a member can come to an end. (5\
7.1.3Although the general rule is that all members can participate in management, certain members may only participa te with authority of the court. List any THREE such members. (3\
7.1.4Can this close corporation be converted in to a private company? (1\ 13030105
7.2DO YOU KNOW THE ROAD AHEAD?
7.2.1
7.2.2
7.2.3
7.2.4List any FIVE duties of the insolvent. (5\
7.2.5
Q8— Section header —
8.1
8.2List the FOUR duties of a representative or agent. (4\
8.3
8.4List FOUR duties of the principal. (4\
8.5An auctioneer may have the right to retain the purchase price of the goods sold at an auction until the commission has been paid.
8.5.1Define this kind of lien. (3\
8.5.2
8.6
Topics Identified
4
Forms of OwnershipBusiness FunctionsLeadershipBusiness Plan
Mark Allocation
Total200 marks
Sections20 + 10 + 10 + 10 + 50 + 50 + 50 + 50 = 250 marks
Paper information
TitleDocument
SubjectMercantile Law
LevelN5
Document typeMemorandum
Year2021
MonthJune
Pages10
Downloads4
Examination context
Decade2020s
Years ago5y
SeasonWinter (SH)
Start dayTuesday
Exam periodJune 2021
Days since exam1,958
About Mercantile Law examination preparation
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