Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. tshepo and onalenna are two graduates who were emp

Tshepo and Onalenna are two graduates who were employed by a big company in Pikwe. after...

90.2K

Verified Solution

Question

Accounting

Tshepo and Onalenna are two graduates who were employed by a bigcompany in Pikwe. after gaining some experience, they gace in tothe temptation to go it alone. They approached a company consultantin town who advised that they could open their own company with thetwo as directors sharing 50:50. Their first major business wasthrough a tender for construction of an oil pipeline from Maun toFranscis town. This tender was valued at P50 million. Afterreceiving their first payment, they all over suddenly become spentthrift. They settled for expensive procurement of cars, houses;which they billed on the company. As a consequence taxes bagan tofall due and government pressed them to account for the monies theyhad received. Fearing they might be prosecuted, they withdraw allthe money and migrate to South Africa. The company has beenbetrayed and so are the employees and the government.

required :

In relation to company law, explain the doctrine of separatelegal personality and illustrate the effect of the doctrine on theliability of owners of the company  

Answer & Explanation Solved by verified expert
3.7 Ratings (602 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Calculus
1.2K views

Evaluate the following expressions. The answer must be given as a fraction, NO DECIMALS. If...

Biology
1.2K views

Gadolinium needs to be strongly chelated when used for NMR and magnetic resonance imaging because...

Physics
1.2K views

ne charge and energy ergy store the capacitor in Fig 2 b 54 when r...

Physics
1.2K views

piano string is 1 4 m long and has a mass of 6 3 grams...

Geometry
1.2K views

4z 3z 7 3 z 5z 2 If the expression above is rewritten in the...

Accounting
1.2K views

Suppose you think Apple stock is going to appreciate substantially in value in the next...

Accounting
1.2K views

The following information applies to the questions displayed below.]Morning Sky, Incorporated (MSI), manufactures and sells...

Accounting
1.2K views

A bond is issued for $750,000 on November 30th to get funds for a couple...

Accounting
1.2K views

Calculate the cumulative effect of the difference in the valuation of inventory on the ending...

Accounting
1.2K views

what is retained earnings and and why is it important to monitor the balance of...

Finance
1.2K views

16. Sources and Uses of Cash (L04] For each account on this company's balance sheet,...

Finance
1.2K views

Manchester & Moore, for the year 2000 has sales of $7,650 costs of goods sold...