DIPLOMA IN ACCOUNTANCY
PREPARED BY :
PREPARED FOR :
MADAM CHE KU ZURAIDAH BT CHE KU LONG
If the individual
possesses a small
amount of capital, he
should venture in a
instead of a company.
probability of an
credit or loans from
• Personal assets have to be taken into account
when selecting the kind of business one wants to
• Personal assets are liable to the creditor if losses
are incurred either in a sole proprietorship or a
• Meanwhile in companies, there is a separate
entity between the shareholders property and
members of the boards and the company.
• These assets will not be affected although the
company incurs losses.
If an individual wants to have a bigger
span of control and authority , sole
proprietorship is the best form of
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
If an individual decides not to
share information with his
counterparts, it is advisable for
him to form a sole
The legal condition of each form of business
ownership must be considered by the
entrepreneur in order for him to make the
In Malaysia, there are four popular types of
business ownership for an entrepreneur to
c)private limited company
d)public limited company
1)Sole proprietorship is an
of legal status for a new
2)Sole proprietorship is by
far the simplest business
structure with minimal
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
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
It is also called a partner on the bussiness.
The partners have contributes money,
labour, or skills and each shares of the
All partners have
liabilities for the
of the company.
it is personally
liable for all
obligations of the
just some of
it is liable to the
extent of their
A private limited company is a company
limited by shares and owned by a group of
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
The example :
Saba Sun Sdn.Bhd
When the company
end with Pte.Ltd
The examples :
The example of private
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
The company end
with berhad :
Example – faiza