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WorksheetsCommunity Organisations: Incorporation
Total questions: 11
Worksheet time: 8mins
Draw an example of a community organisation you know or are a part of.
What is the benefit of incorporation for club members?
Limited liability for club debts
Unlimited liability for club debts
Personal financial profit from contracts
Ownership of club assets
What is limited liability?
The community organisation doesn't need to pay its all its debts
The community organisation only has a few debts
The members of the organisation have to pay the organisation's debts with their personal assets
The members of the organisation do not need to use personal assets to pay the organisation's debts
How many members are required to apply for registration when incorporating a club?
20 members
15 members
10 members
5 members
What is a NOT requirement for an incorporated club?
To file financial statements annually with the Registrar of Incorporated Societies
Maintaining a list of club members
A set of rules stating the purpose(s) of the club and how its activities will be managed
A registered address
Because incorporated clubs are treated in law as if they were a separate person, they can...
Enter contracts to benefit individual members
Avoid entering contracts
Enter contracts to benefit the club
Enter contracts for personal financial gain
What type of loan can members provide to an incorporated club?
Mortgage
Debentures
Personal loan
Business loan
A debenture is a type of loan whereby (a) loan money to the club, usually at a very low or zero interest rate, to help finance the purchase of major assets.
What can debentures be used for in an incorporated club?
To pay for club events
To pay for membership fees
To purchase major assets
For personal financial profit
What are debentures for an incorporated club?
Asset
Liability
Equity
Income
Do small clubs like local street play groups need to be incorporated?
Only if they borrow money
Only if they have assets
No, they do not need to be incorporated
Yes, they must be incorporated
