BUSINESS

OWNERSHIP/ENTITIES
 INTRODUCTION
• One of the first things an entrepreneur must decide on before embarking on his venture is the
proper form of business ownership.
• Selecting the right form of business ownership is important because:
1. Will determine how the business is organized
2. How the money that flows in and out of the business is handled
3. How the business is taxed
FA C T O R S I N
SELECTING A
BUSINESS
OWNERSHIP

1. Capital
2. Personal assets
3. Span of control
4. Sharing of Information
 Sole Private Limited
Partnership
proprietorship Company
TYPES OF BUSINESS OWNERSHIP
• The form of business ownership describes the business’ legal structure. The legal conditions of each form of business ownership must be considered by the
entrepreneuer in order for him to make the right choice.

Public Limited
• In Malaysia, there are 4 popular types of business ownerships for an entrepreneur to choose from :

Company
limited by shares &
owned by a group
of people with at
least 2 or more
individuals but not
more than 50
Solely owned and peoples
operated by one individual

limited by shares with at Owned by at least 2 or

least 7 or more peoples and more individuals but not
there is no max limit in more than 20 persons
terms of membership
F A C TO R S TO C O N S I D E R W H E N S TA RT I N G A
NEW ENTREPRENEURIAL VENTURE

Capital
Location of business
Interest, knowledge and Experience
Size of business
Competitors
Law and regulations
A LT E R N AT I V E S I N S TA R T I N G A
NEW ENTREPRENEURIAL VENTURE
1. Cooperative- Bank Kerjasama Rakyat, Ko-Petro, MBSB, Angkasa(Angkatan Koperasi Kebangsaan Malaysia)

2. Francise- McDonald, Kentucky, Starbuck, Coffeebean, Manhattan Fish Market, Subway, Grab (Grab car, grab
food, grab pay)

3. Start-up Company- completely new business, starting from scratch

4. Acquisition- Buying an existing company- Hong Leong bank , Bank Bumiputera