Theme: balance sheet

• Theme: Business processes and their accounting

• Lecturer: G.D.Tashmanov

• TASHKENT INSTITUTE OF FINANCE

• Depertment of ACCOUNTING

• Decepline of Financial and Management accounting

• TASHKENT 2020

LEARNING OUTCOMES

• Students should be able to:
• Sole Proprietorship
• Partnership
• Company
• Private Limited Company
• Public Limited Company

STRENGTHS OF SOLE PROPRIETORSHIP

• Sole proprietorship is a business owned by only on individual. Its incorporation procedures are simple where it only needs to register with the Registrar of Business in the Companies Commission of Malaysia (CCM). The strengths of a sole proprietorship are:
• Easily formed and dissolved and low incorporation cost
• Can solely enjoy the profit as there is no need to share with others

STRENGTHS OF SOLE PROPRIETORSHIP (CON’T)

• Have full authority to run the business
• Does not depend on other people
• Not many regulations to adhere to
• Not charged with special income tax
• Can be easily dissolved and the cost is minimal

WEAKNESSES OF SOLE PROPRIETORSHIP

• Unlimited liability
• Limited capital
• Owner needs to give full commitment to the business
• Limited life

STRENGTHS OF PARTNERSHIP

• Easily formed
• Can bring in other expertise
• Have the opportunity to increase the capital
• Not many regulations to adhere to
• Not charged with special income tax
• Partners can work together for the benefit of the business

WEAKNESSES OF PROPRIETORSHIP

• Unlimited liability although at least a partner has unlimited liability.
• Profits need to be shared among the partners
• Possibility of misunderstanding among the partners
• Rules to dissolve the partnership depend on certain conditions

PRIVATE LIMITED COMPANY

• The number of shareholders is between 2 and 50 persons only.
• The shares can only be sold to other individuals by invitation and is circulated among members.
• The company cannot be listed in the Malaysian Stock Exchange.

PUBLIC LIMITED COMPANY (CONT.)

• The number of shareholders is a minimum of 7 persons to an unlimited amount of person.
• The shares can be sold to any member of the public.
• The company can be listed in the Malaysian Stock Exchange.