1. DEFINITION
2. assistance and services provided by the Malaysian government or private agencies to help entrepreneurs start a new business or develop an existing one
3. having unlimited legal liability
4. provide suitable business location equipped with all types of facilities including utilities
5. FUNCTIONS OF BUSINESS
5.1. to preserved knowledge
5.2. to serves the needs of customers
5.3. to provide career
5.4. to help country development
5.5. to growth of economy
5.6. to serves society
6. FORMS OF BUSINESS OWNERSHIP
6.1. SOLE PROPRIETORSHIP
6.1.1. CHARACTERISTICS
6.1.1.1. simplest form of business ownership
6.1.1.2. owned by one person
6.1.1.3. does not need to be operated by one person solely - instead it can have large number of employees
6.1.1.4. usually in small size
6.1.1.5. largest number of business in most countries
6.1.2. DISADVANTAGES
6.1.2.1. entirely responsible for debts and risk
6.1.2.2. unlimited personal liability
6.1.2.3. limited access of capital
6.1.2.4. limited skills and capabilities
6.1.2.5. feeling of isolation
6.1.2.5.1. ADVANTAGES
6.1.2.6. short life of business
6.2. PARTNERSHIP
6.2.1. DEFINITION
6.2.1.1. an association of two or more persons to act as co-owners of a business for a profit
6.2.2. TYPES OF PARTNERSHIP
6.2.2.1. GENERAL PARTNERSHIP
6.2.2.1.1. responsible for the business operation and receive a salary
6.2.2.1.2. each partner can enter into contracts on behalf of all the others
6.2.2.1.3. share the profits and losses of the business
6.2.2.1.4. if one partner withdraws, he has to give notice to creditors, customers and suppliers in order to avoid future liability
6.2.2.1.5. responsible for the debts of the enterprise
6.2.2.1.6. a general partner would take an active role in managing business
6.2.2.2. they can lose the capital but they are not required to pay partnership debts
6.2.2.3. partners are not legally liable for debts beyond the amount they invested
6.2.2.4. LIMITED PARTNERSHIP
6.2.2.4.1. not liable for the partnership debts
6.2.2.4.2. their personal properties will not be affected to cover the partnership's unpaid liabilities
6.2.2.4.3. share the profit and loss of the firm
6.2.3. their liability for the debts of partnership is limited to the capital they have put in
6.2.4. easy and low set-up costs
6.2.4.1. may or may not participate in managing the business
6.2.5. ADVANTAGES
6.2.5.1. able to raise more capital
6.2.5.2. tax advantages
6.2.5.3. combined business skills and knowledge
6.2.5.4. retention of profits
6.2.5.5. losses are shared
6.2.6. DISADVANTAGES
6.2.6.1. lack of continuity
6.2.6.2. difficulty in raising large sum of capital
6.2.6.3. bound by the act of one partner
6.2.6.4. at least one partner has unlimited liability
6.3. CORPORATION
6.3.1. DEFINITION
6.3.1.1. most complex form of business
6.3.1.2. a legal entity separate from its constituent members
6.3.1.3. formed by several persons who are able to own property, draw contracts and employ people
6.3.2. TYPES OF CORPORATIONS UNDER THE CORPORATION ACT 1965
6.3.2.1. LIMITED BY SHARES
6.3.2.1.1. member's personal liabilities are limited to the par value of their shares
6.3.2.1.2. it can be
6.3.2.2. LIMITED BY GUARANTEE
6.3.2.2.1. member's liability is limited based on a certain amount that has been agreed by its members as stipulated in the 'Memorandum of Association' in the event company goes bankrupt
6.3.2.2.2. not used for commercial undertakings instead for trade associations, charitable bodies and professional bodies
6.3.2.2.3. if any profits are made, it will not be distributed to its members - it will be reinvested to achieve its goal and not solely for making profit
6.3.2.3. UNLIMITED CORPORATION
6.3.2.3.1. members would have unlimited liability
6.3.2.3.2. not often used for many business undertaking
6.3.3. ADVANTAGES
6.3.3.1. limited liability
6.3.3.2. easy to raise capital through sale of shares
6.3.3.3. able to transfer ownership
6.3.3.4. relative permanence of existence
6.3.3.5. increase expertise and skills
6.3.3.6. able to delegate authority
6.3.4. DISADVANTAGES
6.3.4.1. activities limited by law
6.3.4.2. costly incorporation process
6.3.4.3. high taxation
6.3.4.4. loss of control by the founder
6.3.4.5. extensive governmental regulations and reports required
7. BUSINESS SUPPORT SYSTEM
7.1. TYPES OF BUSINESS SUPPORT SYSTEM
7.1.1. TECHNICAL ASSISTANCE
7.1.1.1. assist entrepreneur in improving their production methods and developing systematic management process
7.1.2. FINANCIAL ASSISTANCE
7.1.2.1. financial facilities or accommodation is provided by financial institution for an entrepreneur to start and perform a business
7.1.3. MARKETING ASSISTANCE
7.1.3.1. provide assistance to entrepreneur in distributing and marketing their products in domestic and foreign markets
7.1.4. INFRASTRUCTURE ASSISTANCE
7.1.5. INFORMATION PROVIDERS
7.1.5.1. information assistance is offered to an entrepreneur in the form of business opportunities, statistic discovery, research and development and technological development
7.1.6. RESEARCH AND DEVELOPMENT
7.1.6.1. research and analysis include project possibilities, marketing research and research on technology
7.1.6.2. training provided to entrepreneur to help them possess the right skills in managing their business
7.1.7. TRAINING, SEMINAR AND WORKSHOP
8. 1. VISION: the reason for the business organization's existence
9. to provide direction and guidance for all business
10. WHAT IS BUSINESS?
10.1. An organization under one management, set up for the purpose of earning profits by providing goods and services for sale in markets.
11. BUSINESS GOALS
11.1. DEFINITION OF GOALS
11.1.1. an objective that a business hopes and plans to achieve
11.2. PURPOSE OF GOAL SETTING
11.2.1. to assist in the allocation of resources
11.3. 3. OBJECTIVE: specific statements that explain in detail on how to accomplish the mission
11.3.1. to define the corporate culture
11.3.1.1. 2. MISSION: indicates the way how a business will achieve its purposes
11.4. TYPES OF GOALS
11.5. formulated by the higher level management group in a business organization
11.6. LEVELS OF GOALS
11.6.1. LONG-TERM GOALS
11.6.1.1. set for a long period of time (5 years and above)
11.6.2. INTERMEDIATE GOALS
11.6.2.1. set by middle managers of a business
11.6.2.2. set for period 1-5 years
11.6.3. SHORT-TERM GOALS
11.6.3.1. set by first line managers
11.6.3.2. set for 1 year and less
11.7. helps managers to assess the business performance
11.8. ROLES OF BUSINESS
11.8.1. provide goods and services
11.8.2. provide employment
11.8.3. helping the country to increase the growth rate
11.8.4. helping to protect the environment