Sole Proprietorship- a business which is solely owned by one person where management rests on that individual whose liability is unlimited.

Sole Proprietorship- owner must disclose business affairs to general public

Sole Proprietorship- owner is totally responsible for any debts incurred by the business

Sole Proprietorship- unlimited liability because if the business fails or bankrupt, the creditors are entitled to seize and sell the owner's possessions.

Partnership- maximum number of partners is 20.

Partnership- not required by the partnership Act.

Partnership- the risk cannot be reduced

Partnership- each partner is liable for the debts of the business, regardless of which partner is at fault

Partnership- better management because combination of skills and knowledge.

Company- two types of companies limited by share are as a public limited company (berhad) and a private limited commpany (sendirian berhad)

Public Limited Company- term public means the shares of stock can be easily purchased or sold by investors.

Public Limited Company- low taxation

Public Limited Company- the company has a separate and distinct life from its owners

Public Limited Company- ownership cannot be transfer

Private Limited Company- must exceed 50 member

Private Limited Company- share cannot be sold to the general public

Private Limited Company- shareholders are not liable for the company's debts beyond the amount of share capital they have subscribed.

Private Limited Company- the life span can be affected by the death.

Private Limited Company- the company has to appoint external auditors to verify its financial report