LSB2605 ASSIGNMENT 01 AND 02 ANSWERS SEMETER 02

LSB2605 ASSIGNMENT 01 AND 02 ANSWERS SEMESTER 02 LSB Semester 2 a) Assignment 01 Question 1 Provide references to your sources, including page numbers. Answers without references to specific page numbers will not be marked and you will not receive any marks for those answers. Incorrect page numbers will not earn marks. Any similarity to the structure, content and style of AI generated answers earn a 0 mark. 1.1.) Which of the following best describes a sole proprietorship? (2) (A) It is a separate legal entity. (B) It has limited liability. (C) The owner and the business are legally the same. (D) It requires a board of directors. 1.2.) Which of the following is NOT required to be contained in an employment contract? (2) (A) How the employee will be paid (B) The job description (C) The times during which the employee is expected to work (D) The employee's address 1.3.) A progressive tax system implies that: (2) (A) All taxpayers pay the same percentage of their income. (B) The tax rate increases as income increases. (C) The tax rate decreases as income increases. ASSIGNMENT 01 Due date: 9 September 2024 You must submit this assignment in time to stay registered for this module and to be admitted to the examination! (D) Taxes are levied at a flat rate regardless of income. 1.4.) Which one of the following is NOT an example of a progressive tax? (2) (A) Personal income tax/PAYE. (B) Value-Added Tax (VAT). (C) Turnover tax. (D) Small business corporation (SBC) tax. 1.5.) A partnership differs from a sole proprietorship because: (2) (A) It must be registered with CIPC. (B) A contract is required to establish it. (C) It has unlimited liability. (D) It is a juristic person. Question 2 Buhle uses her savings to set up a small manufacturing business. According to Buhle’s projections, the business will be making a profit in the first year of operation, and during this period, the total remuneration payable to the employees will amount to R450,000. In the second year of operation, the business will make a bigger profit, with the salary bill increasing to R600,000. 2.1.) Is Buhle’s business liable for payment of a skills development levy in the first and second years of operation, respectively? Calculate the total amount due in each year, as applicable, and provide references for where you found the information. (7) 2.2.) Name the two pieces of legislation that regulate this payment. Provide a reference for your answer. (3) TOTAL: [20 Marks] b) Assignment 02 Questions Chill Out (Pty) Ltd is a student restaurant registered as a Small Business Corporation (SBC) that generates an income of R90,000 per month. Every month the food and beverage costs (cost of sales) amount to R20,000 and the company pays R20,000 in wages, R5,000 in rent for the premises, and R2,000 for water and electricity. Assume there are no other costs. 1.) Must Chill Out have a business license to operate? Provide a reference for your answer. (3) 2.) Calculate the business’s gross annual income. (3) 3.) Calculate the business’s annual tax liability if it is registered as a Small Business Corporation, taking account of allowable deductions. Use the SBC tax table below. (7) 4.) Is Chill Out eligible to register for turnover tax? (2) 5.) Calculate the total tax liability for Chill Out if it were registered as a Small Business Corporation using the tax table below. (5) TOTAL: [20 Marks] © UNISA 2024 ASSIGNMENT 02 Due date: 26 September 2024 You must submit this assignment in time in order for your assignment to count towards your final year mark! Please complete all questions and ensure that you submit the correct assignment (i.e., the assignment for the semester you are registered for).