Chapter 5

Question 1

Name the five type of business ownership

Answer 1

Sole proprietorship, Partnership, Public Limited company, Private limited company

Question 2

What are the types of partnerships?

Answer 2

General partnership, Limited partnership

Question 3

What are the advantages and disadvantages of owning a sole proprietorship?

Answer 3

Advantage: Easy to create, lower taxes, lower capital, more freedom to manage the company
Disadvantage : All workload goes to one person, responsible for all liability, difficult to grow due to low capital

Question 4

What are the advantages and disadvantages of owning a partnership

Answer 4

Advantage : Workload is more evenly distributed, Limited liability, skills are shared
Disadvantage: Bigger capital, not limited liability, business is unable to continue if a partner dies

Question 5

What is the main difference between Private Limited company and Public Limited company

Answer 5

Public : Stocks are shown to public, managed by directors and shareholders
Private : Public is unable to buy or see stocks, shareholders can’t share/transfer stocks

Question 6

Give 3 examples each for private and public limited company

Answer 6

Public : TnB, Maxis, Maybank
Private : Julies, Astro, 99 Mart