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Disability Risk - ANS7x more likely than death during working years 1/10 will be permanently disabled before 65 Potentially more devastating financially than breadwinner's death -Loss of income, additional expenses Many workers have no disability income insurance Workers compensation and Social Security DI Short-term coverage disability plan - ANSUsually < 6 months If provided by employer, plan may be insured or self-insured Long-term coverage disability plan - ANSWaiting peri...

Examples of Employee Benefits - ANS1. Traditional - Health insurance - Life insurance - Disability income plans - Retirement plans 2. Non-Traditional - Child-care - Legal Service plans - Employee Assistance Plans a) Alcohol abuse b) Drug abuse - Wellness programs - Transportation programs Employee Benefits - ANS5 Traditional Categories 1. Legally required social insurance 2. Payments for private insurance and retirement plans 3. Payments for time not worked 4. Extra cash pay...

What is meant by the phrase efficient allocation of resources? What mechanism fosters the efficient allocation of resources in the United States? - ANSResources are efficiently allocated if they are given to enterprises that will use them to provide goods and services desired by society and not to enterprises that will waste them. The capital markets are the mechanism that fosters this efficient allocation of resources. What is the primary objective of financial accounting? - ANSThe primary...

FUNCTION OF THE TRUSTEE - ANS1. Collect the assets in the estate 2. realize them 3. distribute proceeds amongst creditors in the order of preference laid down by the Act. VESTING OCCURS - ANSeven in respect of property which has been sold in execution if the debtor's estate is sequestrated before delivery or transfer of the property concerned. IF PROVISION TRUSTEE IS APPOINTED - ANSEstate vests in him before vesting in the trustee THE ESTATE REMAINS VESTED IN THE TRUSTEE UNTIL - ...

PROHIBITED CONTRACTS - ANSMay not make a contract that purports to dispose of any property of his insolvent estate. May not without the written consent of the Trustee enter into a contract which adversely affects his estate or any contribution which he is obliged to make towards his estate. MERVIS BROTHERS v HANEKOM - ANSM sued H the insolvent for the amount of a debt incurred prior to sequestration. Action was based on an undertaking given by H after sequestration that he would pay the ...

MRL3701 with verified solutions exam bundle

CONTRACT COMPLETED BY INSOLVENT BUT NOT BY OTHER PARTY - ANSIf insolvent has carried out his side of the contract and only other party needs to perform, the right to that performance is an asset in the insolvent estate and vests in the trustee. If right is one to payment the trustee may enforce it in same manner as other debts owed to the insolvent estate. If right is to some the other performance trustee may either sell the right along with the other estate assets or enforce performance ...

WINDING UP MEANS - ANSessentially the procedure by which a company's assets are sold, its debts are paid, and any money left over is divided amongst the shareholders according to their rights. WINDING UP OF COMPANIES IS REGULATED BY THE FOLLOWING LEGISLATIVE PROVISIONS - ANS1. Section 79 - 81 of the Companies Act 71. Winding up of solvent companies 2. Chapter 14 of the Companies Act. 3. Various provision of the Insolvency Act. MODES OF WINDING UP AND ALTERNATIVES TO WINDING UP - ...

ELECTION AND APPOINTMENT - ANSAt first meeting of creditors, creditors who have proved their claims may elect one or two trustees. IF MORE THAN ONE PERSON IS NOMINATED - ANSindividual who obtains a majority votes in both number and value must be elected as sole trustee IF ONE PERSON OBTAINS A MAJORITY IN VALUE AND ANOTHER PERSON A MAJORITY IN NUMBER - ANSBoth must be elected trustees However if either party declines a joint trusteeship the other must be elected sole trustee SHOULD...

DISPOSITION WHICH PREFERS ONE CREDITOR ABOVE ANOTHER :VOIDAABLE PREFERENCE - ANSWhat must be proved: I.t.o. Se 29(1) court may set aside a disposition made by the insolvent not more than 6 months before the sequestration of his estate or his death (where he is deceased and estate in insolvent) if disposition had the effect of preferring one of the insolvent's creditors above another and immediately after the disposition was made, the liabilities of the insolvent exceeded the value of his as...