BUSINESS ORGANISATIONS
PREPARED BY: PUAN MIMI SOFIAH AHMAD MUSTAFA
Imagine that you have some money to start a business. What type of business to venture into?
SOLE
PROPRIETORSHIP PARTNERSHIP LIMITED PARTNERSHIP COMPANY
SOLE PROPREITORSHIP Must be registered under the Registration of Business Act 1956
One man in business on his own
ABOUT SP
Profits go into individual’s own personal a/c
Provides his own skill, labour and capital
Simplest form of business organisation Head of family manages the biz and gets help from family members
SOLE PROPREITORSHIP‌continued May dissolve informally May withdraw capital
May transfer biz to someone else
ABOUT SP
Liability to creditors is unlimited
Cannot create floating charges as securities over loans made
No agreement necessary to set up biz Has unrestricted borrowing powers