Tutorial 5Building on content from Lecture 5 (Restrictions on Member Decision-Making andDirectors and Other Officers)ReadingsHargovan, Chapters 14 and 19.1-19.4TasksQuestion 1Pets Pty Ltd (Pets) operates a business selling pet products (dog and cat food, kitty litter, leashes,etc) all around Australia.Pets is owned by Merve, Silvia, Roger and Oliver. Merve and Silvia together own 75% of the sharesand are Managing Director and Company Secretary respectively. Roger and Oliver own 25% of theremaining shares between them.Although they are minority shareholders, Roger and Oliver like to be informed about everything thatis happening in the business. As they have indicated that they might like to invest more money inPets, Merve and Silvia have indulged them by discussing company matters that are not within theirpower as shareholders.However, this practice has become very time consuming, especially because Merve and Silvia andRoger and Oliver disagree about many things. For example, Merve and Silvia are convinced that Petsneeds to capitalise on the new interest in pet ownership by purchasing a dog kennel that breeds pugdogs. Roger and Oliver are opposed to buying that business on grounds that it is a puppy farm. Thereis an acrimonious discussion about the topic, one of many.Merve and Silvia have recently met Brandy, who runs a small private equity business. She seespotential in Pets and has offered to refinance Pets. Specifically, she has offered to provide enoughmoney to Pets to buy out Roger and Oliver’s share of the capital and purchase the dog kennel.However, Roger and Oliver don’t want to sell their shares.Merve and Silvia wonder whether they can pass a resolution to change the constitution to forceRoger and Oliver to sell their shares to them (Merve and Silvia). They tell you that there is a‘desperate need to harmonise relationships between the shareholders and management’ and thatthey would be willing to Roger and Oliver 75% of the estimated market price, as calculated by thecompany accountant. Considering the equitable limit on minority voting power, is the constitutionalamendment within Merve and Silvia’s power? Explain your answer

In a veterinary office. the owner of the pet(s) is referred to as:Athe parentBthe clientCadministratorDsole proprietor

Marco’s marketing consultant realizes that the Upcycled Dog has a strong product breadth; to manage the impact of the rising and falling sales of individual products, however, the consultant suggests that Marco consider offering customers a pet grooming service. This category of growth strategy is calledMultiple Choicecompetitive advantage.product development.market penetration.diversification.market development.

Pet World is a retail and wholesale entity that applies the periodic inventory system when inventory is purchased from their suppliers. /Pet World is 'n kleinhandel- en groothandels-entiteit wat die periodieke voorraadstelsel toepas wanneer voorraad by hul verskaffers aangekoop word.The following are the major risk(s) in the inventory and production cycle: / Die volgende is die hoof risiko(s) in die voorraad- en produksiesiklus:i) Costs may be incorrectly allocated to inventory, that will result in an inaccurate carrying amount of inventory . /Koste kan verkeerdelik aan voorraad toegedeel word, wat sal lei tot 'n onakkurate drabedrag van voorraad.ii) Revenue are not accounted for in the correct financial period. /Inkomste word nie in die korrekte finansiële periode teboekgestel nie.iii) The personnel working in the factory do not clock their times on official clock cards and are paid incorrect amounts. /Die personeel wat in die fabriek werk, klok nie hulle tye op die offisiële klokkaarte en word verkeerde bedrae betaal.iv) Inventory may be stolen and/or damaged, either in the warehouse or during the manufacturing process, which would lead to losses for the entity. /Inventory may be stolen and/or damaged, either in the warehouse or during the manufacturing process, which would lead to losses for the entity.  A. i and iii /i en iii B. ii, iii and iv /ii, iii en iv C. i and ii /i en ii D. i, ii and iii /i, ii en iii E. i and iv /i en iv F. None of these combinations  /Nie een van hierdie kombinasies nie G. i, iii and iv /i, iii en iv H. i, ii and iv /i, ii en iv

The accounts of Fluffy and Ruffly Pet Services show net sales of $140,000, operating expenses of $56,000, gross profit of $85,000, and net income of $29,000. What was the profit margin?Group of answer choices19.3%40.0%20.7%60.7%

At the end of the accounting period, prior to any closing entries, the balance of Fluffy and Ruffly Pet Services accounts included: the cash account $160,000, service revenue $210,000, and cost of goods sold $126,000. The profit for the period was $6,300. The closing entries results in the:Group of answer choicescash decreasing by $160,000, service revenue increasing by $210,000, cost of goods sold increasing by $126,000, and retained profits decreasing by $6,300.cash remaining unchanged at $160,000, service revenue decreasing to $0, cost of goods sold decreasing to $0, and retained profits decreasing by $6,300.cash remaining unchanged at $160,000, service revenue decreasing to $0, cost of goods sold decreasing to $0, and retained profits increasing by $6,300.None of the other answerscash decreasing to $0, service revenue decreasing to $0, cost of goods sold decreasing to $0, and retained profits decreasing to $0