Explain the terms 'Authorised share capital', 'Retained Income', 'SARS (Income tax)', and 'Memorandum of incorporation'. State one advantage of listing a company at the JSE and explain two reasons for

1.1 Explain the following terms / concepts to him: Authorised share capital: This is the maximum number of shares that a company is legally permitted to issue to its shareholders, as stated in its founding documents. Retained Income: This refers to the portion of a company's net income that is not distributed to shareholders as dividends but is instead kept by the company to reinvest in the business or to pay off debt. SARS (Income tax): SARS stands for the South African Revenue Service. Income tax is a tax levied by SARS on the taxable income of individuals and companies. Memorandum of incorporation: This is a foundational legal document that governs the relationship between a company and its shareholders, directors, and other stakeholders, outlining the company's purpose, structure, and rules of operation. 1.2 What are the Advantages of listing a company at the JSE. State ONE advantage. One advantage of listing a company on the JSE (Johannesburg Stock Exchange) is that it provides access to a larger pool of capital from public investors, facilitating expansion and growth. 1.3 Explain TWO reasons why companies should comply with IFRS when completing the financial statements. 1. Compliance with IFRS (International Financial Reporting Standards) enhances the comparability of financial statements across different companies and countries, making it easier for investors and stakeholders to make informed decisions.