Академический Документы
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Культура Документы
Different Forms
of Business Ownership
LEARNING OUTCOMES
• Fee?
• Trade Name – RM60 per year
Personal Name - RM30 per year
Branch (s) - RM5 per year for each branch
SOLE PROPRIETORSHIP
Activity Fee
Trade Name – RM60 per year
Personal Name -RM30 per year
New Registration
Branch (s)-RM5 per year for
each branch
RM20
Business Updates Branch(s) - RM5 per year for
each branch
Trade Name – RM60 per year
Personal Name -RM30 per year
Business Renewal
Branch (s)-RM5 per year for
each branch
4– 8
ADVANTAGES OF A SOLE
PROPRIETORSHIP
LIMITED PARTNER
• Not liable for the partnership debts.
• Personal properties will not be affected to cover the
partnership unpaid liabilities—limited to the capital they
have put in.
• Can lose the capital but they are not required to pay
partnership debts.
• Not allowed to take part in the management of the
partnership.
Partnerships
• Advantages: • Disadvantages:
• More talent and • Unlimited liability for
money general partner(s)
• More fundraising • Disagreements
capability among partners
• Relatively easy to • Lack of continuity
form
• Limited liability for
limited partners
• Tax benefits
3-16
CORPORATION
*Company secretary
CHARACTERISTICS OF A
CORPORATION
• Limited liability
• Easy to raise capital through sale of shares
• Able to transfer ownership
• Relative permanence of existence
• Able to delegate authority
DISADVANTAGES OF A
CORPORATION
• On the other hand, you can set up an LLP for the price below:
• Company name reservation: RM 30 (Update 14th Dec 2015:
Company name reservation is not mandatory)
• Registration fees: RM 500
• Certificate fees: RM 21.20, including GST (Update 14th Dec
2015: This used to cost RM 47.70. Details in Step 14 below)
(The RM 500 registration fees don’t include your LLP
certificate. As to why someone would register a company
without wanting a certificate beats me, but anyway…)
• Total: RM 521.20
• And it’ll cost you this much to maintain it yearly: Annual
declaration: RM 200
4– 24
Starting a Limited Liability
Partnership (LLP)..Cont..
• It’s a lot cheaper because you don’t need to do things like have an
Annual General Meeting, hire a company secretary, and submit audited
financial reports.
• But why not form a sole proprietorship or partnership instead? They
cost much cheaper. Only RM 60 per year to start and maintain (RM 30
if you’re not creative and use your own name).
• Because an LLP is a separate legal entity from its partners. It declares
its tax separately from its partners (important, because it can help
optimize the tax you pay). And then the most important point of all:
like a private limited company, an LLP offers limited liability to its
partners.
• Meaning even if the LLP is sued and goes bankrupt one day,
creditors cannot come after your personal assets. But in a conventional
sole proprietorship or partnership — they can and they will.
How to register an LLP?
4– 26
FRANCHISING
4– 32
• 1) In a franchise agreement, the franchisee is
________.
• A) the parent company
• B) the local owner
• C) the supplier
• D) any of a number of customers
• Answer: B
• 2) In a franchise agreement, the franchisor is
________.
• A) the parent company
• B) the local owner
• C) the supplier
• D) any of a number of customers
• Answer: A
• 3) The most significant disadvantage of owning a
franchise is ________.
• A) startup costs
• B) guidelines on operating the business
• C) competition
• D) difficulty obtaining loans
• Answer: A
• 4) Which of the following represents the most
businesses in Malaysia?
• A) sole proprietorships
• B) partnerships
• C) cooperatives
• D) corporations
• Answer: A
• 5) A(n) ________ invests money in a partnership but
is liable only to the extent of his/her investment.
• A) agent
• B) general partner
• C) limited partner
• D) officer
• Answer: C
• 6) A ________ is a business that is legally
considered a separate entity from its owners and is
liable for its own debts.
• A) sole proprietorship
• B) corporation
• C) partnership
• D) cooperative
• Answer: B
• 7) The owners of a corporation are the ________.
• A) board of directors
• B) officers
• C) stockholders
• D) top managers
• Answer: C
• 8) Corporate officers are ________.
• A) top managers
• B) members of the board
• C) non-voting stockholders
• D) none of the above
• Answer: A
• 9) Corporations sell shares in the business called
________.
• A) bonds
• B) treasury securities
• C) stock
• D) dividends
• Answer: C
• 10) Company A purchased Company B. This is an
example of a(n) ________.
• A) merger
• B) spin-off
• C) divestiture
• D) acquisition
• Answer: D
• 11) Company A sold its pet food division to
Ralston-Purina so that it could focus on its core
businesses. This is an example of a ________.
• A) spin-off
• B) divestiture
• C) strategic alliance
• D) merger
• Answer: B
• 12) Curves, McDonald's, and Subway are examples
of ________.
• A) government entities
• B) university sponsored businesses
• C) franchises
• D) networking businesses
• Answer: C
• Explanation: C) All of these businesses represent an
agreement between a franchisee and a franchiser.