BAB 4 : BUSINESS ENTITIES

Question 1

factors in selecting business entities:
1)
2)
3)
4)

Answer 1

capital
personal assets
span of control
sharing of information

Question 2

types of business entities
1)
2)
3)
4)

Answer 2

sole proprietorship
partnership
private limited company
public limited company

Question 3

Sole proprietorship

1) easy or not?

2) Register:
- how many times pay the fee?
- why have to pay the fee?
- how about the audits?

3) who owned it?
- operated by whom?
- how many owners?

4) liability?
- what happened when businesses bankrupt?

5) types of traders?
- how many people carry it?
- employees?

6)Who can register?

Answer 3

1) simplest and cheapest

2) Register:
- annual fee
- keep business renewed every year
- no need to submit audits

3) solely owned
- one individual
- one/single

4) unlimited liability
- creditors can sue the owner

5) sole trader
- not carried by individual alone
- large numbers of employees

6) Malaysian citizens, permanent

Question 4

Partnership
two types of partnership :
-
-

Answer 4

general

limited

Question 5

Partnership

1) how many owners?
- holder?
- how many people?
- maximum numbers of people?

2) Partners responsibilities
- what should they contribute?
- what do they have to share together?

3) firm names? company names?
4) Liability?
5) Who can register?

Answer 5

1) more than 1
- joint-entity holder
- 2 and more
- 20 members

2) Partners responsibilities
- contributes money, labor, skills
- shares profits and losses

3) Associates
4) Unlimited
5) Malaysian Citizens, permanents

Question 6

General Partnership

1) which partners?
- liability?
- what about the obligations of the firm?

2) who manages the company?
3) who receives the salary?
4) what about the profits and losses?

Answer 6

1) All partners
- Unlimited liabilities
- personally liable for obligations of the firm

2) All partners
3) All partners
4) Shares firm’s

Question 7

Limited Partnership

1) which partners?
- liability?
- the role?

2) can they extents their contribution (capital)?
3) their responsibilities?
4) what about the profits and losses?

Answer 7

1) Some partners
- limited liability
- not take an active role in managing the company

2) Liable
3) not extend to management company
4) shared profits and losses

Question 8

Private limited company

1) How to know if the company is a private limited company?

2) Entity?
- What they can buy and sell?
- contracts?
- Can they get sues?

3) What are they limited by?

4) Can own by how many people?
- the minimum number?
- the maximum number?
- what do they do?
- what about the employees?

5) Can sell the shares?

6) Are the finances and assets separate?
- What are they responsible for if the company has the problem?
- Are there a risk of personal wealth?

7) Are this type of company a viable option?

8) Recommend for who?
- Are they allowed having 100% ownership?
- Which they just allowed having 50% ownership?

Answer 8

1) SDN BHD or PTE LTD

2) Separate legal entity from the owner
- can buy and sell property
- presents into legal contracts
- yes, they can sue or get sued in courts

3) Limited by shares

4) Group of people
- 2
- 50
- pool capital and work together
- unlimited

5) cannot be sold to the general public

6) yes, separate from business
- only responsible for company debts up to the amount they have invested and no more
- no

7) yes

8) Foreign owner
- yes
- oil and gas, education, tourism, agriculture, banking

Question 9

Public limited company

1) same as a private limited company
but

2) To whom can be offered the shares?
3) legal?
4) liability?
5) Numbers of shareholders?

6) Number of people
- min
- max

7) Types of business

Answer 9

2) public
3) separate legal existence
4) limited
5) 2 and more

6)

• 50
• unlimited

8) Large