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. \boxed{\text{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.