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…