BACHELOR OF BUSINESS ADMINISTRATION (HONS.) FINANCE MANAGEMENT OF BUSINESS RECORDS (IMR652) TYPES OF BUSINESS ORGANISATION PREPARED BY NUR HANI ARIFAH BINTI OMAR IZZATUL ALIA BINTI ABDUL MUTALIB SABRINA BATRISYIA BINTI SHAHROM MUHAMAD ZARIQ NAJMI BIN MOHD NAFIR MUHAMMAD ALIF IMRAN BIN AHMAD SHUHARDI 2022675918 2022616368 2022612036 PREPARED FOR SITI AQILAH BINTI YOP 2022490692 2022610478
YPE OF Sole Proprietorship Partnership Corporation Cooperative IMR652 MAGAZINE MANAGEMENT OF BUSINESS RECORDS T BUSSINESS ORGANISATION JAN 2024 01 02 03 04 2025 EMPOWER EVERY PERSON AND EVERY ORGANIZATION ON THE PLANET TO ACHIEVE MORE
AUTHORSANDEDITORS MUHAMAD ZARIQ NAJMI BIN MOHD NAFIR MUHAMMAD ALIF IMRAN BIN SUHARDI NUR HANI ARIFAH BINTI OMAR IZZATUL ALIA BINTI ABDUL MUTALIB SABRINA BATRISYIA BINTI SHAHROM
01- 02 TABLE contents of Understanding Business Organisation exploring different entities Partnership Corporation Sole Proprietorship Co-operative characteristics of partnership types of partnership partnership advantages partnership disadvantages partnership company in Malaysia characteristics of corporation corporation advantages corporation disadvantages types of corporation how co-operative ownership work pros & cons of cooperatives types of cooperatives cooperative company importance of cooperative Conclusion final thoughts features of sole proprietorship sole proprietorship characteristics advantages and disadvantages of sole proprietorship factors contributing to the popularity of sole proprietorship example of sole proprietorship company 03 - 07 08 - 12 13 - 17 18 - 22 23 - 25
Understanding Exploring Different Business Entities Business Organizations 1. Sole Proprietorship: Definition: A business owned and operated by a single individual. Key Characteristics: Sole decision-maker, full control, and direct responsibility. Advantages: Simple setup, quick decision-making. Disadvantages: Limited resources, personal liability. 2. Partnership: Definition: A business structure in which two or more individuals manage and operate a company in accordance with the terms and objectives set out in a Partnership Deed. Key Characteristics: Shared responsibilities, profits, and losses. Advantages: Shared workload, diverse skill sets. Disadvantages: Shared liabilities, potential conflicts. 3. Corporation: Definition: A legal entity separate from its owners, often formed to conduct business. Key Characteristics: Limited liability, perpetual existence. Advantages: Access to capital, ease of transferability. Disadvantages: Complex setup, regulatory requirements. 01 MUHAMAD ZARIQ NAJMI BIN MOHD NAFIR Slide Chapter 1 page 36-50 ttps://www.investopedia.com/terms/p/p artnership.asp#:~:text=A%20partnership %20is%20an%20arrangement
4. Limited Liability Company (LLC): Definition: A hybrid business entity that combines the flexibility and pass-through taxation of a partnership with the limited liability of a corporation. Key Characteristics: Limited liability, flexible management structure. Advantages: Limited personal liability, tax flexibility. Disadvantages: Administrative requirements, less formal structure. 5. Cooperative: Definition: An organization owned and operated by a group of individuals for their mutual benefit. Key Characteristics: Democratic control, shared profits. Advantages: Shared resources, communityoriented. Disadvantages: Decision-making may take longer, limited capital. 6. Nonprofit Organization: Definition: An organization whose primary objective is to support a particular cause rather than to maximize profit. Key Characteristics: Mission-driven, taxexempt status. Advantages: Contributions are taxdeductible, social impact. Disadvantages: Limited revenue sources, strict regulations. 02 MUHAMAD ZARIQ NAJMI BIN MOHD NAFIR Slide Chapter 1 page 46-50
A partnership is a type of business organization in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Deed. Each partner contributes to all aspects of the business, including money, property, labor, or skill, and in return, they share the profits and losses of the business. WHAT IS PARTNERSHIP? 1 1 2 CHARACTERISTIS OF PARTNERSHIP Agreement between Partners 3 4 5 Two or More Persons Sharing of Profit Business Motive Unlimited Liability PPAARRTTNNEERRSSHHIIPP 03 NUR HANI ARIFAH BINTI OMAR SLIDE CHAPTER 1 PAGE 43
To manage a firm, a general partnership consists of two or more proprietors. Every partner in this partnership has equal representational rights for the company. Each partner has the authority to run the company and can take part in managerial functions and decision-making. In a same vein, assets, liabilities, and earnings are distributed and shared equitably. Put differently, partnerships where management and decision-making powers and duties are equitably shared might be characterised as general partnerships. All liabilities and debts committed by the other partner should be fully assumed by each partner. All other partners are held liable in the event that one gets sued. The partner's personal assets will be held by the creditor or the court. Each partner in a limited liability partnership (LLP) has limited liability. Every partner is protected from the financial and legal errors of the other partners. A limited liability partnership differs from a general partnership or limited partnership, although it is nearly identical to an LLC. 6 TYPES OF PARTNERSHIP General Partnership Limited Partnership Comprises the general and limited partners in this partnership. The general partner oversees the other limited partners as well as the business and is subject to limitless responsibility. Limited partners' influence over the company is restricted to their investment. They have nothing to do with the company's regular business operations. The limited partners often just make investments and receive a profit share. They have no desire to be involved in management or decision-making. They are therefore not entitled to deduct the partnership losses from their income tax return due to their lack of involvement. Limited Liability Partnership A partnership at will is characterised by the absence of any reference of the partnership firm's expiration. As a result, it is not a partnership at will if the terms of the agreement specify the duration and determination. Additionally, at the beginning, if the business had a set end date but continued to operate after that point, it would be regarded as a partnership at will. Partnership at Will 04 NUR HANI ARIFAH BINTI OMAR SLIDE CHAPTER 1 PAGE 43
13 With each partner contributing their unique expertise, abilities, contacts, and experience, the business may have a greater chance of success than if each person were to trade alone. Tasks can be divided among partners, with each specialising in what they like and are most skilled at. As a result, one partner with a background in finance could concentrate on keeping up with the company's records, while the other partner might have substantial sales experience and take charge of that aspect of the firm. In contrast, if you were a sole proprietor, you would have to handle all of this yourself (or supervise someone you hired to handle some of it). ADVANTAGES OF PARTNERSHIP The partners can agree to create the partnership verbally or in writing. There’s no need to register with Companies House and registering the business partnership for taxation with HMRC is quite simple. The partners will also individually need to register for self assessment, which they can do online. Although it will take longer and incur additional cost, it’s usually sensible to put in place a partnership agreement. This documents how the partnership will work, the rights and responsibilities of partners and what would happen in various possible situations, including if the partners fundamentally disagree or someone wants to leave. Working in a company partnership offers you companionship and support from one another, which is advantageous as compared to going it alone as a single trader. It can be intimidating and difficult to launch and run a business on your own, especially if you've never done it before. You work together when you are in a relationship. Easy to get started Sharing the burden Access to knowledge, skills, experience and contacts Better decision-making In a partnership, as opposed to going it alone, the company gains from the distinct viewpoints that each partner contributes. In the world of business, it is often the case that two minds are truly better than one, since the collective solution reached via debate is often superior to what any one partner could have arrived at on their own. 05 NUR HANI ARIFAH BINTI OMAR SLIDE CHAPTER 1 PAGE 44
14 DISADVANTAGES OF PARTNERSHIP The business has no independent legal status A business partnership has no independent legal existence distinct from the partners. By default, unless a partnership agreement with alternative provisions is put in place, it will be dissolved upon the resignation or death of one of the partners. This possibility can cause insecurity and instability, divert attention from developing the business and will often not be the preferred outcome of the remaining partners. Even if a partnership agreement is in place, the remaining partners may not be in a position to purchase the outgoing partner’s share of the business. In that case, the business will likely still need to be dissolved. Unlimited Liability Profits must be shared Again because the business does not have a separate legal personality, the partners are personally liable for debts and losses incurred. So if the business runs into trouble your personal assets may be at risk of being seized by creditors, which would generally not be the case if the business was a limited company. The partners are jointly and severally liable. As one partner can bind the partnership, you can effectively find yourself paying for the actions of the other partners. If your partners are unable to settle debts, you’ll be responsible for doing so. In an extreme example where you only own 10% of the partnership, if your partners have no assets you might end up having to settle 100% of the debts of the partnership and need to sell your possessions in order to do so. In essence, a partnership divides its profits among its members, whereas an individual trader keeps all of their earnings. Profits are divided evenly by default under the Partnerships Act of 1890, though a partnership agreement may change this. Equitable profit sharing might bring up challenging issues. How do you rate the individual skills of different partners? What happens if one partner appears to be contributing less time and energy to the business but is yet receiving a portion of the earnings? When labour and reward don't seem to be balanced fairly, it might be easy for resentment to grow. 06 NUR HANI ARIFAH BINTI OMAR SLIDE CHAPTER 1 PAGE 44
07 NUR HANI ARIFAH BINTI OMAR Business Partnerships in Malaysia. (n.d.). Malaysia Company Registration Specialist | Paul Hype Page & Co. https://www.paulhypepage.my/business-partnerships-in-malaysia/
CORPORATION Another type of business structure is a corporation. Incorporation can be done at the federal or provincial/territorial level. When you incorporate your business, it is considered to be a legal entity that is separate from its shareholders. As a shareholder of a corporation, you will not be personally liable for the debts, obligations or acts of the corporation. It is always wise to seek legal advice before incorporating. What is Corporation? CHARACTERISTIC OF CORPORATION 2-50 Government Requirements Capital from Government Requirements Taxed at personal tax rate Limited Liability Profits are distributed to shareholders 08 slide Chapter 1 Page 46 SABRINA BATRISYIA BINTI SHAHROM https://courses.lumenlearning.com/wmfinancialaccounting/chapter/characteristics-ofcorporations/
What is an advantages of Corporation? Professional management Corporations can hire professional managers to run the business, which can free up the owners to focus on other things. This can be especially beneficial for large or complex businesses. Tax benefits In some cases, corporations may be able to enjoy certain tax benefits that are not available to other types of businesses. For example, S corporations are taxed as pass-through entities, which means that the corporation's profits or losses are passed through to the shareholders and reported on their individual tax returns. Limited liability One of the biggest advantages of a corporation is that the owners (shareholders) have limited liability for the debts and obligations of the business. This means that if the corporation goes bankrupt, the shareholders' personal assets are generally protected. Access to capital Corporations can raise capital more easily than other types of businesses by issuing shares of stock. This can be done through a variety of methods, such as an initial public offering (IPO) or a private placement. Perpetual existence A corporation is a separate legal entity from its owners, and it can continue to exist even if the ownership changes hands. This makes it a more stable and long-lasting business structure than a sole proprietorship or partnership. 09 SLIDE CHAPTER 1 PAGE 47 SABRINA BATRISYIA BINTI SHAHROM
Double taxation In some cases, corporations may be subject to double taxation. This means that the corporation's profits are taxed once at the corporate level and then again at the shareholder level when the profits are distributed as dividends. Increased regulation Corporations are subject to more regulation than other types of businesses. This can include things like filing annual reports, holding shareholder meetings, and complying with various accounting and tax rules. Cost of formation and operation It can be more expensive to form and operate a corporation than other types of businesses. This is due to the increased legal and accounting requirements. What is disadvantages Corporation? Separation of ownership and control In large corporations, there is often a separation of ownership and control. This means that the people who own the corporation (the shareholders) may not be the same people who run the corporation (the board of directors and management). This can lead to conflicts of interest between the owners and the managers. 10 CHAPTER 1 PG 47 SABRINA BATRISYIA BINTI SHAHROM
TYPES OF CORPORATION C corporations A C corporation is a legal organisation or structure that the government taxes independently from its owners. Many bigger organisations form themselves as C corporations for federal income tax purposes, and they're also authorised to receive an unlimited number of both international and domestic shareholders. Governments regard the transfer of earnings and profits as dividends to be subject to income tax, and thus levies the profits of the corporation both at the corporate level and on an individual's tax returns. Exceptions to this rule include both payouts in the corporation's liquidation and the termination of shareholder's interest. S corporation S corporation are businesses that decide to transmit their corporate income, losses, credits and deductions straight to their shareholders for tax purposes. By establishing themselves as a partnership, they're able to avoid double taxes of a C corporation. They tax revenue at the shareholder level rather than the corporate level, and payments to shareholders are tax-free. LLC A limited liability corporation (LLC) includes aspects of both a partnership and a corporate organisation. This kind of business gives limited liability protection to owners, shielding them from being financially accountable for any harm the firm causes. Unlike a C corporation, a board of directors normally isn't essential for an LLC, and its owners may chose to establish this sort of organisation as a partnership. LLCs also feature pass-through taxation, meaning that only the owners pay income taxes on their personal part of the firm, rather than the entity itself. LLCs might be an excellent choice for sole proprietors. 11 https://www.nerdwallet.com/article/small-business/business-entity SABRINA BATRISYIA BINTI SHAHROM
Amazon revolutionized e-commerce since its founding in 1994, making it the world's largest online retailer, cloud infrastructure provider, and AI assistant provider. It boasts a market cap value of over $1 trillion (as of Apr 2023), with its founder Jeff Bezos being one of the world's wealthiest people for many years. Millions of people have grown accustomed to making purchases on Amazon, and many companies now use Amazon Web Services to offer reliable web hosting solutions. Amazon has a strong focus on building a corporate structure to align and drive strategy. Amazon's strategy emphasizes its sources of competitive advantage, which includes a strong focus on technology and a commitment to realizing the benefits of economies of scale. It aims to meet every customer's needs with a superior experience, so Amazon becomes a part of their lives. Under leadership of John Sculley, Apple issued its first corporate stock dividend on May 11, 1987. A month later on June 16, Apple stock split for the first time in a 2:1 split. Apple kept a quarterly dividend with about 0.3% yield until November 21, 1995. Between March 1988 and January 1989, Apple undertook five acquisitions, including software companies Network Innovations, Styleware, Nashoba Systems, and Coral Software, as well as satellite communications company Orion Network Systems. Apple continued to sell both lines of its computers, the Apple II and the Macintosh. A few months after introducing the Mac, Apple released a compact version of the Apple II called the Apple IIc. And in 1986 Apple introduced the Apple IIGS, an Apple II positioned as something of a hybrid product with a mouse-driven, Mac-like operating environment. Even with the release of the first Macintosh, Apple II computers remained the main source of income for Apple foryears. Apple Inc 12 https://en.wikipedia.org/wiki/History_of_Apple_Inc.#:~:text=Appl e%20Inc.%2C%20originally%20named%20Apple,digital%20distrib utor%20of%20media%20content https://www.functionly.com/orginometry/amazoncorprate-structure SABRINA BATRISYIA BINTI SHAHROM
Sole proprietorship A sole proprietorship is a business structure where a single individual owns and operates the business. It's the simplest form of business ownership, and the owner is personally responsible for the business's liabilities. 73% of all small firms in the United States today are sole proprietorships, which are the most basic and prevalent type of business ownership (a total of 23 million were recorded by the IRS in 2010 and again by the small business administration (SBA) in 2018). The owner of the firm is entitled to all earnings, has personal liability for all debts, losses, and obligations of the company, and is required to pay personal income tax on any profits made by the business. Unlike corporations or LLCs, the proprietor is not obliged to formally register their business with their state. 13 Features of Sole Proprietorship One man ownership No seperate Business entity So seperation between Ownership & Management Unlimited Liability All Profits or Losses to the Proprietor Fewer Formalities Characteristics of Sole Proprietorship Single Ownership No sharing of Profit or Loss One man’s capital One-man control Unlimited Liability Less Legal Formalities MUHAMMAD ALIF IMRAN BIN AHMAD SHUHARDI iEduNote. (2020, January 27). Sole Proprietorship: Definition, Features, Characteristics, Advantage, Disadvantages. IEduNote.com. https://www.iedunote.com/sole-proprietorship
Advantages & Disadvantages of Sole Proprietorship Easy to Form & Wind Up A sole proprietorship is a simple business structure that requires little startup costs. Legal formalities are usually not required, unless certain firms need particular licences. The business can be formed and wound up simply, at the owner's discretion, and without the need for complicated formalities. What Advatages Does Sole Proprietorship Offer? Direct Motivation The solo proprietor is the only one who owns the profits and assumes all risk of losing money. As a result, effort and reward are directly related. He might be able to make more money if he puts in a lot of effort, and he will be the only one to benefit from it. No one will give him this prize in turn. The solitary proprietor is greatly motivated to work hard by this. Better Control A sole proprietorship gives the owner complete control over all business operations. He organises and plans everything, coordinating every task with efficiency. With complete authority at his disposal, the proprietor can exert greater control over the company. Close Persoanal Relation A lone proprietor is always able to keep in close personal contact with both clients and staff. The solo entrepreneur can learn about each customer's unique preferences, dislikes, and likes through direct communication. Additionally, it facilitates the upkeep of cordial and good relationships with the staff, which helps the firm work efficiently. 14 MUHAMMAD ALIF IMRAN BIN AHMAD SHUHARDI iEduNote. (2020, January 27). Sole Proprietorship: Definition, Features, Characteristics, Advantage, Disadvantages. IEduNote.com. https://www.iedunote.com/sole-proprietorship
Limited Capital When a business is operated as a sole proprietorship, the owner arranges for the necessary funding. It is frequently challenging for one person to raise a significant sum of money. Sometimes the owner's resources as well as borrowed funds run out before the company can continue to grow and expand. 15 What are the Disadvantages of being a sole proprietor? Lack of Contuinity A sole proprietorship's continued existence is correlated with the owner's life. The business closes when the proprietor becomes ill, dies, or becomes insolvent. As such, there is no guarantee that commercial operations will continue. Limited Size There is a point at which it is challenging to grow a sole proprietorship business organization's operations. If a business expands beyond a certain point, it may not always be feasible for one individual to oversee and manage the operations of the company. Lack of Managerial Experts It's possible that a Sole proprietor lacks expertise in all areas of management. He or she might be a master in planning, organising, and other areas, but perhaps not so much in marketing. Again, hiring a professional manager is not feasible due to restricted financial resources. As a result, the company does not profit from expert management. MUHAMMAD ALIF IMRAN BIN AHMAD SHUHARDI iEduNote. (2020, January 27). Sole Proprietorship: Definition, Features, Characteristics, Advantage, Disadvantages. IEduNote.com. https://www.iedunote.com/sole-proprietorship
Cost - Very little to start Compared to corporations and LLCs, creating a sole proprietorship is much less expensive. A sole proprietorship can be founded for free, but forming a corporation or LLC may cost hundreds of dollars. Once more, the main expenses associated with establishing a single proprietorship are those related to obtaining the necessary licences and licences. WHY SOLE PROPRIETORSHIP IS POPULAR? Decision Making - Can be quick All facets of the firm are completely under the authority of sole proprietors. Other business entities that involve one or more partners or shareholders do not enjoy this luxury. Taxes - Easy to pay taxes There is a strong incentive for people to establish sole proprietorships when there is no requirement to file a company tax return. Sole proprietors report business income and losses on their taxes, as stated on the All Business website. Strategy - Fast to form a strategy Until the costs of forming a partnership or incorporating are offset by the business's growth in size, complexity, and value, it operates as a sole proprietorship. 16 MUHAMMAD ALIF IMRAN BIN iEduNote. (2020, January 27). Sole Proprietorship: Definition, Features, AHMAD SHUHARDI Characteristics, Advantage, Disadvantages. IEduNote.com. https://www.iedunote.com/sole-proprietorship
EXAMPLE OF SOLE PROPRIETORSHIP 17 MUHAMMAD ALIF IMRAN BIN AHMAD SHUHARDI FREELANCE WRITER PHOTOGRAPHER BARBER BAKER iEduNote. (2020, January 27). Sole Proprietorship: Definition, Features, Characteristics, Advantage, Disadvantages. IEduNote.com. https://www.iedunote.com/sole-proprietorship
18 A co-operative is owned and controlled by an association of members. It can be set up as a for- profit or as a not-for-profit organization. Members typically pool resources and share in the decision-making process, aiming to meet common needs or objectives. While cooperatives do need to make money to be successful, they generally reinvest profits instead of paying them out to owners and shareholders. A company can incorporate, forming a corporation that is owned by fewer than 100 people (an S-corp) or hundreds or even thousands of people (a C-corp). This is the least common form of business, but can be appropriate in situations where a group of individuals or businesses decide to pool their resources and provide access to common needs, such as the delivery of products or services, the sale of products or services, employment, and more. Membership in the cooperative and product purchases are prerequisites for ownership. To become an owner in most cooperatives, you must pay an upfront equity payment. Certain cooperatives, such as housing cooperatives, permit the transfer or sale of ownership, while others don’t. HOW DOES CO-OP OWNERSHIP WORK ? IZZATUL ALIA BINTI ABDUL MUTALIB Slide chapter 1, page 49
CONS 19 PROS Pros and Cons of Cooperatives Democratic Provide great economic benefits to members Engaged employees and customers Less taxation The fact that members' demands will be satisfied and no owner will control the decision-making process may appeal to clients who wish to join the organisation. Furthermore, this model's structure makes it extremely stable, so members can come and go without having a significant negative influence on the company. Patronage dividends are paid to consumer cooperative members based on how much they have spent since the prior payout. Employees of the cooperative receive substantial discounts on items. Members who own real estate in residential cooperatives participate as stockholders and receive benefits from interest and upkeep expenses. Employee engagement and performance would both increase if they had a bigger say in the results of their company. Employees have the right to participate in decision-making, regardless of their positions within the company. Decisions will be made more intelligently if employees are involved in the management process. If customers have a stake in the future of the firm, they are also more likely to remain loyal to it. Essentially, rather than paying taxes on an individual and corporate basis individually, members will only pay taxes once on the revenue they receive from the cooperative. Regarding federal taxation, for-profit cooperatives receive preferential status. Less capital incentives and don’t appeal to big investors Allow generic marketing Slow decision-making processes Share pricing with competition Large investors may be less inclined to participate in cooperatives, which could lead to financial problems. Knowing that a larger contribution does not equate to a larger share size may be advantageous to smaller investors, but it is less so for larger players. Furthermore, it may be challenging for cooperatives to get financing from banks. When using a cooperative for marketing, it may lose control of the unique brand because advertising is done for all members. This could result in being grouped with other businesses or competitors that don't want to be associated with in the eyes of their customers. Decision-makers can react swiftly to problems as they arise when authority is centralised; however, in a cooperative model, all owners would participate in the decision-making process, which would require more time. Cooperatives may not be useful when choices need to be taken quickly. Paying the same prices as your rivals when you buy through a cooperative. This implies that you won't have a competitive advantage because competitors of all sizes are treated equally by this kind of organisation. IZZATUL ALIA BINTI ABDUL MUTALIB Brandon Miller ( 2016 ), 10 Pros and Cons of Cooperatives https://greengarageblog.org/10- pros-and-cons-of-cooperatives
In worker cooperatives, employees are also owners of the business. They participate in the decision-making process and share in the profits based on their level of participation or work. TYPES OF COOPERATIVES CONSUMER COOPERATIVES Consumer cooperatives are owned and operated by the individuals who use the products or services of the cooperative. Members, who are also customers, have a say in the decision-making process and may receive benefits like discounts or dividends. PRODUCER COOPERATIVES Producer cooperatives are formed by independent producers or businesses that join forces to sell their products collectively. Members may pool resources to improve production efficiency and market their goods more effectively. Housing cooperatives are formed by individuals who collectively own and manage residential properties. Members typically have a stake in the cooperative and may be involved in decision-making related to the housing community. Credit unions are financial cooperatives that provide banking services to their members, who are also the account holders. Members often have voting rights and may receive benefits such as competitive interest rates and lower fees. WORKER COOPERATIVES HOUSING COOPERATIVES CREDIT UNIONS 20 IZZATUL ALIA BINTI ABDUL MUTALIB NATIONAL COOPERATIVE BUSINESS ASSOCIATION CLUSA INTERNATIONAL (2024), WHAT IS A CO-OP? https://ncbaclusa.coop/resources/what-is-a-coop/#:~:text=The%20purpose%20of%20a%20cooperative,they%20exist%20in%20or%20serve
ANGKASA has established Eight Sector Leads in an ef ort to execute the scope of economic development, in line with the government's hope of seeing Co-operative Sector contributing RM50 bilion to the country's Gross Domestic Product by 2020. CO-OPERATIVE COMPANY Bank Kerjasama Rakyat Malaysia Bhd, an Islamic co-op bank better known as Bank Rakyat, retains the number one spot in 2019 for the fourth consecutive year. The country’s top 100 cooperatives (co-ops) have combined assets totalling RM123.24 billion as of this year, according to the Malaysia Co-operative Societies Commission (SKM). 21 IZZATUL ALIA BINTI ABDUL MUTALIB Voice Of ASEAN (2021), Malaysian National Cooperative Movement (ANGKASA): The Road to 2050 https://voiceofasean.com/government/malaysian-national-cooperative-movement-angkasa-the-road-to2050/
22 IZZATUL ALIA BINTI ABDUL MUTALIB NEBRASKA COOPERATIVE DEVELOPMENT CENTER (2024). What is a Cooperative https://ncdc.unl.edu/what-cooperative
CONCLUSION Asweconcludeour explorationofdiverse businessorganizations,itis evidentthattheworldof commerceisamultifaceted landscape,offering entrepreneursamyriadof structures tochoosefrom. Eachentitycomeswithits ownsetofadvantagesand challenges, shapingtheway businessesoperate,evolve, andimpacttheworldaround them. Imagine the business world as a vibrant tapestry, woven with threads of sole proprietorships, partnerships, corporations, LLCs, cooperatives, and nonprofits. Each thread contributes to the rich and intricate pattern of entrepreneurship. Recognizing the unique characteristics of each entity allows aspiring business leaders to tailor their approach to fit their vision, goals, and values. Selecting the right organizational structure is akin to choosing the fabric for a bespoke suit – it should align with your style, provide comfort, and endure the tests of time. Whether you prefer the nimbleness of a sole proprietorship, the collaborative spirit of a partnership, or the resilience of a corporation, the decision rests on your shoulders. Our guide serves as a compass, aiding you in navigating the complexities and nuances of each option. The Tapestry of Choices Tailoring Your Business 23 MUHAMAD ZARIQ NAJMI BIN MOHD NAFIR
Beyond Profit While the pursuit of profit is a common thread in the business tapestry, it's essential to recognize the increasing importance of social impact and sustainability. Nonprofit organizations and cooperatives showcase that businesses can be catalysts for positive change, not just wealth accumulation. As you chart your course, consider how your chosen entity aligns with your broader vision, contributing to a world that extends beyond financial success. Striking the Balance Balance is the hallmark of a successful enterprise. Striking the right equilibrium between risk and reward, innovation and stability, profit and purpose is a delicate dance. The decision on the type of business organization sets the tone for this dance, influencing the rhythm and tempo of your entrepreneurial journey. Embrace the dynamism, and remember, the beauty lies in the harmonious blend of ambition and responsibility. 24 MUHAMAD ZARIQ NAJMI BIN MOHD NAFIR
FINAL THOUGHTS I n this intricate mosaic of business entities, the essence lies in understanding the colors, patterns, and textures that make each unique. Whether you opt for the simplicity of a sole proprietorship or the complexity of a corporation, your choice shapes not only your business but also your legacy. As you navigate the vast sea of possibilities, may your journey be marked by informed decisions, purposeful endeavors, and the unwavering pursuit of success – however you define it. Here's to a future where businesses not only thrive but also contribute to a brighter, more sustainable tomorrow. Cheers to your entrepreneurial voyage! 25 MUHAMAD ZARIQ NAJMI BIN MOHD NAFIR
26 REFERENCES Business Partnerships in Malaysia. (n.d.). Malaysia Company Registration Specialist | Paul Hype Page & Co. https://www.paulhypepage.my/business-partnerships-in-malaysia/ Kopp, C. M. (2021). Partnerships: What You Should Know. Investopedia. https://www.investopedia.com/terms/p/partnership.asp#:~:text=A%20partnership%20is%20a n%20arrangement Britanica : Business Organization( Defination) https://www.investopedia.com/terms/p/partnership.asp#:~:text=A%20partnership%20is%20a n%20arrangement Desirée Pacheco, Angelique Slade Shantz, Geoffrey M Kistruck, Justin W. Webb (2022). How to Manage a Cooperative Business https://nbs.net/how-to-manage-a-cooperative-business/ NEBRASKA COOPERATIVE DEVELOPMENT CENTER (2024). What is a Cooperative https://ncdc.unl.edu/what-cooperative Brandon Miller ( 2016 ), 10 Pros and Cons of Cooperatives https://greengarageblog.org/10-pros-and-cons-of-cooperatives NATIONAL COOPERATIVE BUSINESS ASSOCIATION CLUSA INTERNATIONAL (2024), WHAT IS A CO-OP? https://ncbaclusa.coop/resources/what-is-a-coop/#:~:text=The%20purpose%20of%20a%20cooperative,they%20exist%20in%20or%20serve History of Apple Inc. (2023, December 3). Wikipedia. https://en.wikipedia.org/wiki/History_of_Apple_Inc.#:~:text=Apple%20Inc.%2C%20originally %20named%20Apple,digital%20distributor%20of%20media%20content Staff, F. (2023, May 3). Amazon’s Corporate Structure: Exploring Hierarchy and Management Style. https://www.functionly.com/orginometry/amazon-corprate-structure 6 Types of Corporations to Consider in 2024. (2023, September 10). Shopify. https://www.shopify.com/my/blog/types-of-corporations Prakash, P. (2024, January 11). Types of Business Entities. NerdWallet. https://www.nerdwallet.com/article/small-business/business-entity Characteristics of Corporations | Financial Accounting. (n.d.). https://courses.lumenlearning.com/wm-financialaccounting/chapter/characteristics-ofcorporations/
MANAGEMENT OF BUSINESS RECORDS MAGAZINE WWW.IMR652.UITM 17 JANUARY 2024 ISSUE NO 08