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BUSINESS ENTTIES & FORMATION - Coggle Diagram
BUSINESS ENTTIES & FORMATION
FORMS OF BUSINESS ENTITIES
Business Registration Act 1956 (Amendment 1978) & Procedures Of Business Registration
1957
sole proprietorship
partnership
Cooperative Act 1948
Company Act 1965
limited company by guarantee
limited company by share
Private Limited Company (Sendirian Berhad)
Public Limited Company
Foreign Owned Company
Unlimited Company
Parliamentary Act or State (Government)
Enactment
TYPES OF BUSINESS ENTITIES
Sole Proprietorship
Formed under the Business Act 1956 (Amendment
1978).
This form of business structure is solely owned by
one person, where management rests on that
person whose liability is unlimited.
A sole proprietorship is the simplest business
structure.
As for the name of the business, the name of the
owner or any other name may be used.
ADVANTAGES OF SOEL PROPRIETORSHIP
Easy to manage because the owner or proprietor can make decisions by himself.
The owner enjoy the certain degree of flexibility
Easy to form
nobody shares the rewards
DISADVANTAGES OF SOLE PROPRIETORSHIP
Limited source
the liability of the business is unlimited
the future development of the business is limitied
the owner is solely responsible for carrying out all the tasks.
Partnership
two or more partner
a person forms a partnership with one or more persons to carry out the business
ADVANTAGES OF PARTNERSHIP
easy to set up with a few formalities
easier to secure financial
equity can be increase
business risks can be reduced
the tasks can be divided equally
DISADVANTAGES OF PARTNERSHIP
business liability are unlimited
the life span of the partnership depends on the life span of the partners
risk of personal clashes among the partners
Private Limited Company
PRIVATE LIMITED COMPANY
A private limited company is one of the business
entities set up under the Companies Act 1965.
BUSINESS FORMATION
starting from scratch
buying an existing business
family business succession
acquiring a franchise
cyber entrepreneurship