RSA Module 1 Test

SECTION 1 – OBJECTIVE & SCOPE

1.1    Governing body members are responsible for expanding their knowledge on:

1.2    Is the following statement correct or not?

The scope of this study guide includes a summary of key principles, duties and responsibilities that governing body members must perform including the responsibility to become fully informed.

1.3    Governing body members are responsible for expanding their knowledge on:

1.4    Is the following statement correct or not?

This study guide is suitable for induction purposes only.

1.5    Which of the following statements is incorrect?

SECTION 2.0 – CORPORATE GOVERNANCE

 2.1    Is the following statement correct?

Governance is the system by which NPO’s are directed, controlled and held to account. It focuses on policy, systems and direction, which is the primary role of the governing body and it relates to decisions that define expectations, grant power, or verify performance.

2.2    Is the following statement true?

Modern application of corporate governance has its emphasis more on the accomplishment of competitive business performance through the application of superior skills, knowledge and teamwork at governing body level.

2.3    Which of the following answers is incorrect?

2.4    Is the following statement correct?

Business ethics is not presented as a separate section and can be found throughout the sections of this manual.

SECTION 3.0 – LEGAL NATURE OF THE NON-PROFIT ORGANISATION

3.1    Which of the questions below is correct?

3.2    Which of the following statements is incorrect about the nonprofit organisation?

3.3    Which of the following statements is correct?

The essential characteristics of an incorporated non-profit company are:

3.4   Is the following statement correct or not?

All Non-Profit Organisations in South Africa can only be incorporated if the have at least seven members.

3.5    Which of the following statements is incorrect?

SECTION 4.0 – MAIN OBJECT OF THE ENTERPRISE

4.1    Which of the following answers is incorrect?

4.2    Is the following statement correct?

A Non-Profit Organisation may be incorporated/established for an object relating to one or more cultural, or communal or group interests.

4.3    Is the following statement correct?

The Objectives of a non-profit organisation are not important should it apply for approval as a public benefit organisation.

4.4    Is the following statement correct?

The term ‘public benefit’ is defined in the Companies Act.

SECTION 5.0 – STAKEHOLDERS AND BENEFICIARIES

5.1    Is the following statement true?

Modern corporate governance maintains that organisations have stakeholders and not just shareholders with a vested interest in its performance and ongoing success.

5.2    Who are deemed legally to be the members of a Non-Profit Company?

5.3    Who are deemed to be stakeholders of a non-profit organisation?

5.4    What are stakeholders of Non-Profit organisations entitled to expect?

5.5    Is the following statement true?

All non-profit organisations must have members.

SECTION 6.0 – THE MEMBERS OF THE NON-PROFIT ORGANISATION

6.1    Which of the following statements is correct?

6.2    Is the following statement true?

Institutions that become members of a non-profit organisation and then provide finance in the form of donations are entitled to profits or gains made by the application of these funds.

6.3    Which of the following statements is incorrect?

The non-profit organisation…..

6.4    Is the following statement true?

The assets and capital acquired by the non-profit organisation in the course of its normal business, belong to it, and the members, and can be distributed to them.

6.5    Which of the following statements is correct?

Upon winding up of the non-profit organisation: