A business is a legal form of organization and is recognized for providing goods or

services, or both, to consumers, businesses and government entities. Business is the major
capitalist economies. Most businesses are privately owned. A business typically designed to
make money that will add richness and enlarge the business owners themselves. The owners and
operators of a business have one of the main objectives the receipt or generation of a financial
return in exchange for work and acceptance of risk. Businesses can also be formed into a nonprofit or be state-owned enterprises.
The etymology of "business" relates to the rigors of an individual or society as a whole,
making viable commerce and work can profit. The term "business" has at least three uses,
depending on the scope - a guide means a company or corporation, public use to refer to a
particular market sector , such as " the music business " and a combination such as Agribusiness
, or term wider community including all activities by suppliers of goods and Service is applicable
. However, the right business terms, like others in the philosophy of business, is just one of those
things that complex arguments and terminology? Business consists of 3 types, which are sole
proprietorship, partnership and corporation.
Section 4 of the Registration of Businesses Act 1956 defines a sole proprietorship as a
business established, owned, funded by both the financial and management run by one
individual. It usually involves a small-scale business. These types of businesses often owned by
one person, where all business depends on it. The sole responsibility of the owner is unlimited. If
the business failed and was declared bankrupt, creditors can sue the owner of the claimed debt.
Those who can get a court order may require the owner of private property on the sole. Include
home, car and so on. Notwithstanding the business entity is fun and easy to set up for the lack of
formalities that must be observed. However, a single business may not use names that are

associated with the Central Government or local authority. For example: Government Business
Melaka . This is to avoid misinterpretations people who deal with the business. Single business
may not use sensitive names and names that conflict with morality; example Scam Business &
Environment Play Malaysia .
CHARACTERISTICS OF PROPIERTORSHIP

Sole proprietors or private.

Owned by an individual who has personal responsibility for the debt (unlimited liability).

Familiarity capital savings and loans obtained from friends and relatives.

Easy to set up and does not involve complicated procedures.

Unlimited liability.

Entitled to all profits and bear all losses also business.

A tax is imposed in the form of singles through the Income Tax Board (IRB).

The lifespan of a single business is limited. If the business owner dies then the business will
be dissolved.

Business is the most widely practiced in Malaysia.

Example: Tom Yam Anie Shop, Retail Shop Celebration, Mas Furniture Stores, Shops Motor
Abu etc.

THE ADVANTAGES OF SOLE PRORIETORSHIP

Requires a small amount of capital

Easy set up

Easily controlled and managed

Administering independent business ownership into their own hands

Personal income tax benefit

Have an incentive to work hard

Can put a business close to home customers

Has a close relationship with customers

Employment of family members

To provide credit to customers

THE DISADVANTAGES OF SOLE PRORIETORSHIP

Bearing unlimited liability

Capital Limited restrict business growth

There is no division of labor and specialization

Business may not be sustained

Workload

No retail business can take advantage of large-scale

Bear a risk every business

Where else, a partnership was established with the founding register with the Companies

Commission of Malaysia (SSM). Partnerships exist with a variety of ways, including: Consent of
doing business between the two individuals Agreement business partnership between the two
businesses (sole proprietorship business) no matter whether or not the original form after
merging, provided agreed to do business together. Agreement between the two parties
(individuals and businesses) does business together for the purpose of capital assistance a
partnership was established with the founding register with the Companies Commission of
Malaysia (SSM). Partnerships exist with a variety of ways, including: Consent of doing business

between the two individuals Agreement business partnership between the two businesses (sole
proprietorship business) no matter whether or not the original form after merging, provided
agreed to do business together. Agreement between the two parties (individuals and businesses)
does business together for the purpose of capital assistance
CHARACTERISTICS OF PARTNERSHIP

No clause in the Partnership Act 1961 mentions the maximum number of partners; please
indicate the minimum number of partners 2 people. But with Section 14 (3) (b) of the Act
specifies the maximum number of partners of a partnership is 20 people. However, for
business professionals such as legal form, accountants and architects, the membership can be
increased up to 50 people.

In terms of partnership law is not considered a separate entity with a partner (unlimited
liability). This means that all transactions done by a partner to bind the partnership as a
whole. Example: If a creditor demanded money from the partnership, each perkings
responsible to settle the claim. If mana2 partner had defaulted claims, the other partner must
help to pay it off. In terms of legislation, the partnership is not considered a separate entity
with a partner. Reference Section 7, 8, 11 and 12 Act Partnership 1961.

Bound by a deed of agreement between the partners. Partnership agreement determines the
power & responsibility partner & conditions lain.Rakan2 partners are required to contribute
capital in proportion to the capital which agreed in Article Profit Sharing and loss attributable
to partners in accordance with the conditions and the ratio of capital contributed as share
articles.

THE ADVANTAGES OF PARTNERSHIP

Easy set up

Tend to generate large capital

Business risk can be spread

Low income tax burden

Division of labor and specialization

The limited liability of the limited partners

THE DISADVANTAGES OF PARTNERSHIP

A highly-horn a partnership involving all other partners

Capital is still limited

The existence of the partnership did not last

Unlimited liability

The possibility of conflicting

Lastly, a corporation business is carried on a group of individuals voluntarily to keep the

kindness of the members. There are two forms of cooperatives are:

Cooperation limited membership - Restricted to the type of job, and background areas
such as the Cooperative Teacher

Cooperation membership is free - same to be open to anyone to join as Consumer

Cooperatives, Cooperative Housing

Lastly, cooperation business is carried on a group of individuals voluntarily to keep the

kindness of the members. There are two forms of cooperatives are:

Cooperative limited membership - Restricted to the type of job, and background areas
such as the Cooperative Teacher

Cooperative membership is free - same to be open to anyone to join as Consumer

Cooperatives, Cooperative Housing

According to the Co-operatives Act, 1948, the cooperative has the same principles as volunteers
and open, democratically travel management, profit payments on restricted stock, profit sharing
equitably, to promote cooperative education and work actively at all levels.
CHARACTERISTICS OF COOPERATION

Embodied under the Cooperation Deed Ordinal Malaysia

Registered with the Cooperative Development Position

a liability LIMITED

Capital is obtained through monthly, yearly or shares purchased by the expert

Risks, advantages and disadvantages based on grip stock and the involvement of experts

Be handled by a Steering Institute experts constituted by the cooperative during the Annual
General Meeting

Unassigned cooperative advantage to expert whether one or two times a year in the form of
dividends or bonus or both.

THE DISADVANTAGES OF COORPERATION

1. To co-operatives:

Have regular customers

Enjoy the benefits of large-scale business

Profits are exempt from profits tax

2. To members

The removal of middlemen

Reasonable prices

Enjoy the benefits of limited liability

Get interest on capital

Get a rebate on purchases or dividend

THE DISADVANTAGES OF COORPERATION

Ownership and management are separated

The board is constantly changing

Dissent and large

The value of individual share ownership limited

Characteristics

Sole Proprietorship

Partnership

Corporation

Number of owners

2 ~ 20 partners

50 ~ infinite

Capital

Owner

Partner

Co-op member

Profit/Loss

Owner

Under the

Dividends among members

partnership
agreement
Liability

Unlimited

Unlimited

Limited

Availability

Discontinuous

Discontinuous

Continuous

Personal income tax

Tax

Personal

Cooperation income tax

income tax
Example

food shop, retail outlets

Business

school cooperation shop

professionals,
such as
accounting and
auditing firm

Conclusion, if the first customer is thinking of setting up a business which is small, the
author prefer the customer to choose Sole Proprietorship because its only need 1 owner to
handle and low budgets. If the customer have friends or family to build and assist the company,
the author will suggest because it can have 2 or more owner and can create large capital from its
partner to create the business. If the customer is a teacher that want to give some practical to his
or her student to have a business experience in school, the author will recommend them
cooperation type of business because students are able to purchase essential goods in society
with a cheaper price and also The price of shares will not exposed to fluctuations in the stock
price and not depend on the demand and supply of shares in the open
The accounting package that I prefer for my client use for their business is Mind Your
Own Business (MYOB) software because with these 5 reasons:
1. Faster input
Manual entries can be more time consuming. This is especially so when you have to be
creating headings or labels as you go alone. As a matter of fact, manual systems can require

multiple entries per transaction and are likely to be more complex. The more complex the
system the more time it will take.
2. Greater cost cutting
A computerized accounting package like MYOB offers up-to-date, accurate and easy to
access financial information. This means that audit and accounting expenses will be much
less than they are likely to be with a complex manual system that only you can readily
understand.
3. Makes GST filing easier
Having all the information compiled makes running any report you need easy. Plus,
programs like MYOB automatically create the figures you will need to file a normal GST
return. This saves you from having to sift through multiple sheets attempting to extract
details.
4. Quick access to management information
The state of your business finances is important because it will help you plan for the future as
well as make wise decisions in the present. This means that being able to study things like
your business cash flow, sales records and order invoices is important as well. Using a
program like MYOB makes generating reports and invoices easy, so you do not waste time
extracting and sifting through data in order to run reports.
5. Improved accuracy
Having fewer areas to fill in means you are less likely to make errors that can cost you time
and money. This is so because these types of software often require just one figure for each
transaction. This makes it easier to keep track of the task as well as to double check entries.

The list of benefits to a program such as MYOB is far longer, but the main point is clear.
These programs save you time and money, make your work easier, as well as help you to be
more efficient. Luckily, a bookkeeper can help you get started on structuring your company
finances and can show you how to maintain the order you achieve through your
computerized accounting program. This MYOB software cost around RM2, 959.00 for single
user license