types of business ownerships

1. Form of Business
Ownership

Sole Proprietor/Sole Trader/Milikan
Tunggal.Syarikat Ah Seong, Kedai
Makan Mek Nab & Joul Enterprise

Partnership-Perkongsian-Dr Wong and
rakan-rakan.

Companies-Syarikat:Sdn Bhd, Berhad

Co-operative-Koperasi-Koperasi
Angkatan Tentera Malaysia, Angkasa,
Koperasi Safeguards etc..

2. Sole Proprietor/Sole
Trader/Milikan Tunggal.

3. 
Business ownership is a single business
carried on by individuals and owned by
individual full.

Business owner have a power to control the
business operations.

Owners and business is referred to as one of
the same entity. No separation between
them.

Owners will received all the profits and bear
for all losses from business.

Unlimited liabilities

4. Advantages

Easy to set up.

The owner has absolute power to
control the business.

Fast decision make by the owner of the
business.

Individual Tax.

No need the complex financial reports.

5. Disadvantages

Difficult to grow because of the limited
capacity of capital

Difficult to get capital financing from
the financial institution because they
need a strong assurance from the
business.

Liability is unlimited.

Business will disband itself if the
owner died.

6. Partnerships

7. 
A partnership is defined as the relationship
that exist between person carrying on
business. These person agree to combine
some or all their property, labor and skill.
This relationship is based on contract.

Business owned by minimum of two persons
and maximum of 20 persons.

Professional service partnerships consist of
maximum 50 persons.

There are two types of partnerships:

-Active partner

-Sleeping partner

8. Partnerships



Strictly follow the Partnerships Act
1961 and partnerships contract of
agreement for profit and loss
distribution.
Liability for partnerships is unlimited
except for the limited partnerships.
General partners have unlimited
liability for partnerships debts, and the
partnerships terminates when a
general partner wishes to sell out or
dies.

9. Advantages

Partnerships allow for a greater
amount of money, skill and other
resources to be pooled.

They are relatively easy to organize.

They are subject to limited government
regulations and do not face high tax
rates.

10. Disadvantages

Partnerships have a limited life.

Each partner is subject to unlimited
liability. This means that if the
company fails, creditors can take action
against both the partnership and the
persons who are in it.

Partners have mutual agency. This
means that one partner can make
decisions without consulting to
other(s).

11. Co-operative

12. 
It is a business organization owned and
operated by a group of individuals for their
mutual benefits.

A community based business

Eg: Bank Rakyat, Koperasi Angkatan
Tentera Malaysia and Angkasa.

13. Corporation
A business created as a distinct legal
entity composed of one or more
individuals or entities.
 In Malaysia, corporations are follow
strictly under Company Act 1965.
 Corporation are divide into two
-Private Limited
-Public Limited


14. Corporation







Private limited can be held by minimum of
2 and maximum of 50 shareholders.
There is no maximum shareholders for
Public limited company.
Shareholders will received their profit in
the form of dividend.
Corporation managed by Board of Director
that appointed by shareholders in AGM.
Liability of shareholders is limited base on
the paid up capital.
Tax is paid, base on company profit.
Eg: Tenaga Nasional Berhad, Safeguard
Securicor Sdn Bhd.

15. REFERENCES
Eck, D.J., 2008,
Essentials of Entrepreneurship and Small Business
Management, 3rd edn., OOPWeb.com,
viewed 26 March 2014, from
http://dfwwebpresence.com/files/FlashDrives/New
%20Drive/Classes/MGMT3850%20Entrepreneurship/Es
sentials%20of%20Entrepreneurship%20and%20Small
%20Business%20Management/Frontmatter.pdf