POLITEKNIK HULU TERENGGANU

DIPLOMA IN ACCOUNTANCY

ENTREPRENEURSHIP

PREPARED BY : GROUP 1

PREPARED FOR :MADAM CHE KU ZURAIDAH BT CHE

KU LONG

CAPITALIf the individual

possesses a small amount of capital, he should venture

in a sole proprietorship instead of a company. Determine the

probability of an individual obtaining credit or loans from external sources.

PERSONAL ASSETS

i

• Personal assets have to be taken into account when selecting the kind of business one wants to venture in.

ii

• Personal assets are liable to the creditor if losses are incurred either in a sole proprietorship or a partnership.

iii

• Meanwhile in companies, there is a separate entity between the shareholders property and members of the boards and the company.

iv• These assets will not be affected

although the company incurs losses.

SPAN OF CONTROL

If an individual wants to have a bigger span of control and

authority , sole proprietorship is the best form of ownership

In a partnership, the span of control is shared among all

partners.

In a company, the person who is responsible for initiating the

business will not necessarily be the director of the company

throughout his lifetime. As such, only a sole proprietor

will have full power and authority in carrying out his

business.

SHARING OF INFORMATION

If an individual decides not to share information with his

counterparts, it is advisable for him to form a sole

proprietorship.

TYPES OF BUSINESS OWNERSHIP

The legal condition of each form of business ownership must be considered by the entrepreneur in order for him to make the right choice.

In Malaysia, there are four popular types of business ownership for an entrepreneur to choose from:a)sole proprietorshipb)partnershipc)private limited company

d)public limited company

SOLE PROPRIETORSHIP

1)Sole proprietorship is an active form

of legal status for a new business

2)Sole proprietorship is by far the simplest

business structure with minimal requirement

3)This form of business structure is solely owned

and operated by one individual

4)Sole proprietorship known as a sole trader

5)Sole proprietorship can have a large number of

employees

PARTNERSHIP A bussiness that owned by at least two

or more individuals but not exceeding the maximum of 20 persons.

its formed under the Bussiness Registration Act 1956.

It is also called a partner on the bussiness.

The partners have contributes money, labour, or skills and each shares of the profits.

THE TYPES OF PARTNERSHIP

General Partnership

All partners have unlimited liabilities for the of the company.

it is personally liable for all obligations of the firm.

Limited Partnership

just some of partners have limited liabilities.

it is liable to the extent of their contributions.

PRIVATE LIMITED COMPANY A private limited company is a

company limited by shares and owned by a group of people.

Two or more individuals but not exceeding 50 people who pool their capital and work together to form a company.

The name of a private company will ends with the words ‘sendirian berhad’ or ‘private limited’ its owned by a group of people.

When the company end with SDN.BHD

The example : Saba Sun Sdn.Bhd

When the company end with

Pte.Ltd The examples :Bestari Pte.Ltd

The example of private limited company

PUBLIC LIMITED COMPANY A public limited company is a company

unlimited by share.

At least 2 or more individual and there is no maximum limit in term of membership.

Using the word “ Berhad (Bhd)” or “limited (ltd) ” after the company’s name .

The example of public limited

company

The company end with berhad :

Example – faiza berhad

The company end with limited :

Example – saga ltd

Thank you…