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Business Entities - Coggle Diagram
Business Entities
Sole Proprietorship
- The simplest structure of business
- Unincorporated ; Not a legal entity
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- Use own to resources to provide skill, labor, capital, & other resources to run the business
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has committed an offence for which he is liable under S.12 of the Act to a fine of not exceeding RM50000 if not registered.
Partnership
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- Minimum number of person is two persons and maximum number is 20
- The law of partnership governed by the Partnership Act 1961 (Revised 1974); similar to English Partnership Act 1890
- Unincorporated - no legal distinction between the business and those of its owner
Limited Partnership
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- Has 2 types; general partnership and limited partners
- General partnership : take part in management of firms but not limited partners.
- Limited partners : have limited liability in contributing toward business debts.
- Shall not be liable for debts/liabilities of offshore limited partnership
Company
- As a company incorporated under the Companies Act 2016 or under any corresponding previous law
- In contrast to a sole proprietorship and partnership, a company is an incorporated association
- Comes into existence apart from the person who formed it
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