Help

Lawyerment Quick Link - Homepage - Free Email - Message Boards - LawCrawler - Legal News - Legal Dictionary - Lawyers Jokes - Lawyers Directory - Newsletters - Legal Guide - Refer A Friend - Interesting Facts - Library - Downloads - >> more

Library Search
How to Contribute
Disclaimer
Featured Publications
Lawyerment's Contributors
Legal Subjects
Forms & Agreements
Legal Subjects > Business Law
 
Main Category
>Law of Malaysia
>Legal Professionals
>Students
>Business & The Public
>Accident Law
>Bankruptcy Law
>Business Law
>Criminal Law
>Employment Law
>Estate Planning
>Family Law
>Financial Law
>Immigration Law
>Insurance Law
>Intellectual Property
>Litigation
>Real Estate Law
>Tax Law

 

Main Category

Related Topics

WHAT IS BUSINESS ?

Business is an activity to provide goods or services at a profit. Every business carried on for this purposes such as trade, commerce, craftsmanship, profession must be registered.

A business main aim may not be making profit but this is certainly the difference between a business organization and a non-business organization.

WHAT ARE THE MOST COMMON TYPES OF BUSINESS ORGANIZATIONS ?

In Malaysia, a business may be carried on in any one of the following forms:

  • Sole Proprietorships
  • Partnerships
  • Companies

The business of a sole proprietorship is owned by one person only and is the simplest form of business organization. However, it need not be a one-person business. They can have large numbers of employees.

A partnership exists when at least 2 or more persons pool their capital and work together. The partners share the risk. As with the sole proprietorship, the partners are owners of its property and are fully responsible for meeting the partnership's debts.

When a company is formed, it has become 'incorporated' under the Companies Act, 1965. The company formed is treated as a separate entity, independent of its members.

There are two common types of companies limited by shares - Public limited companies and Private limited companies.

Private limited companies cannot sell shares to the general public. The name of private limited company ends with the word "Sendirian Berhad" or abbreviation "Sdn. Bhd.".

Public limited companies raise capital by selling shares and are run by a board of directors elected by shareholders. They show their status by using the abbreviation "Bhd." or the word "Berhad" after their name.


Copyright ©1999-2001 Magnificent Communication. All rights reserved

Privacy Policy | Terms Of Use | Contact | About Us | Advertising Opportunities | Press | Add URL | Submit Article | Contributors