CHAPTER 2

BUSINESS MANAGEMENT
AND ACCOUNTING BASICS
by Rasmaliza Bt Rashid

DFC30103 – CYBERPRENEURSHIP

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Woot! Woot! SYNOPSIS

CYBERPRENEURSHIP course provides a broad overview of the role

of entrepreneurial thinking and innovation in advancing IT-
focused businesses. This student will examine how these skills can
be leveraged to create new IT-driven businesses as well as to
create competitive advantage for existing businesses via new IT
products and services.

Students will be introduced to concepts, tools, and principles of

business management including business strategy, finance,
RASMALIZA RASHID marketing, human resources, and leadership within the context of
IT business models.
LECTURER

Hi Everyone, you are in CYBERPRENEURHIP – DFT30103 class!

CONTINUOUS ASSESSMENT 2 / 7 / 8

QUIZ 2 BMC BMC Pitching

10% 10% 5%
MARKS MARKS MARKS

3
TOPIC OUTLINES
At the end of this chapter, students should
be able to :
2.1 Understand the management in business.

2.2 Propose the formation of a new business.

2.3 Explain the business support systems.

2.4 Understand accounting basic.

 COURSE LEARNING OUTCOMES (CLO)

Upon completing this course, students

should be able to :
CLO1: Discover the basics of cyberpreneural management, financing and marketing in various social
media mix used in order to be a successful cyberpreneur (C2, PLO1)
PLO1 : Practice Information and Communication Technology (ICT) skill in performing diagnostic and
documenting processes in ICT related fields.

CLO2: Practice good leadership and management skills in delivering business plan for future
expansion (A2, PLO5)
PLO5 : Demonstrate social skills and responsibilities by taking alternate role as a leader or member
of a diverse team.
 2.2
PROPOSE THE FORMATION OF A
NEW BUSINESS
 2.2.1

Type and Characteristics

of Business Ownership
 TYPES OF BUSINESS
OWNERSHIP

LIMITED LIABILITY
SOLE PRIVATE LIMITED PUBLIC LIMITED
PARTNERSHIP PARTNERSHIP
PROPRIETORSHIP COMPANY COMPANY
(LLP)
TYPES & CHARACTERISTICS OF BUSINESS OWNERSHIP

SOLE
PROPRIETORSHIPS

01
Simplest business structure

• Minimal legal requirements – Business Act

1956 (Amendment 1978) And The
Procedures Of Business Registration 1957)

• Solely owned

• Operated by one individual

• Can have large number of employees

TYPES & CHARACTERISTICS OF BUSINESS OWNERSHIP

01 # Sole
Proprietorships.
• Business owned (and usually operated) by
ONE PERSON.

• SIMPLEST FORM of business ownership.

• MOST POPULAR form of business organization –

72.2% of all. EXAMPLE :
• Tailors
• Minimum legal requirements under BUSINESS • Beauty salons
REGISTRATION ACT 1956 (Amendment 1978) • Restaurants
and THE PROCEDURES OF BUSINESS • Mini market
REGISTRATION 1957 (ROB).
ADVANTAGES AND DISADVANTAGES OF EACH OF ENTREPRENEURIAL OWNERSHIP

01 SOLE
PROPRIETORSHIPS

ADVANTAGES DISADVANTAGES
• Ease of formation. • Unlimited liability.

• Total independence in decision • Lack of continuity.

making / freedom of choice complete
control. • Lack of experience and ability.

• Full and total responsibility. • Incurs all loses.

• Retaining all business profits. • Limited access to funds.

• No requirement for authorization and • Limited skills.

disclose of financial reports.
• Long working hours.
• Taxation advantage.
• Relative difficulty in obtaining long
• Fewer legal restrictions. term financing.
TYPES & CHARACTERISTICS OF BUSINESS OWNERSHIP

PARTNERSHIP
Owned by at least two or max 20 persons

• Formed under Business Act 1956 (Amendment

1978) And The Procedures Of Business

02
Registration 1957). – only Malaysian citizens or
permanent residents can register partnership.

• Owners = partners

• Each partner contributes > money, labour, skills

; share profits or loses

• Recommended to prepare an agreement on

the articles of partnership.

• Eg. Klinik Dr Zaini dan Dr Nadia

2 Types Of Partnership

i. General Partnership

ii. Limited Partner

TYPES & CHARACTERISTICS OF BUSINESS OWNERSHIP

02 # Partnerships.
• Owned by at least 2 OR MAX 20 PERSONS. TYPE OF PARTNERSHIP :
# General Partnership
• Formed under BUSINESS ACT 1956 • Unlimited Liability for debts
(AMENDMENT 1978) and THE PROCEDURES • General partner manages
OF BUSINESS REGISTRATION 1957 (ROB). company, receives salary
and share company’s profits
• Only Malaysian citizens or permanent or loses.
residents can register partnership.
# Limited Partner
• Share the firm’s profits or loses
• Owners = partners. Each partner contributes
but do not take an active role
> MONEY, LABOUR, SKILLS ; SHARE PROFITS or
in managing the company
LOSES. and share company’s profits
or loses.
• Recommended to PREPARE AN AGREEMENT
on the articles of partnership.
ADVANTAGES AND DISADVANTAGES OF EACH OF ENTREPRENEURIAL OWNERSHIP

02 PARTNERSHIP

ADVANTAGES DISADVANTAGES
• Increase in resources for capital. • Unlimited liability.

• Distribution and sharing of business • Limited life span.

risks.
• Lack of continuity.
• Direct rewards.
• Shared profits.
• Taxation advantage.
• Shared control.
• Combined talents and business
acumen. • Conflict.

• Ease of formation.

• Ability to specialize.
TYPES & CHARACTERISTICS OF BUSINESS OWNERSHIP

LIMITED LIABILITY
PARTNERSHIP (LLP)

03
Considered a separate legal entity
• Owners called “Stockholders” or
Shareholders”
• Ownership evidenced by “Stock
Certificate”
• Governed by “Board of Directors”

2 Types Of Corporation
i. Private Limited Company
ii. Public Limited Company

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TYPES & CHARACTERISTICS OF BUSINESS OWNERSHIP

PRIVATE LIMITED COMPANY

• Company limited by shares

04
• Owned by a group of people ( 2 or
more – not >50 )
• “Limited” – separate entity/has own
legal identity
• Owners/shareholders will elect the
BOD – responsible for establishing the
general policies, appoint president.
• Name ends with ‘Sendirian Berhad’ or
‘Private Limited’ with its abbreviation
‘Sdn.Bhd.’ or ‘Pvt.Ltd.’

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TYPES & CHARACTERISTICS OF BUSINESS OWNERSHIP

PUBLIC LIMITED COMPANY

• Company limited by shares

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• Owned by a group of people ( 7 or
more – no max. limit )
• Source their capital by selling shares
to public
• “Public” – shares can be easily
purchased/sold by investors
• Can be listed or unlisted in on the
stock exchange
• Name ends with ‘Berhad’ or ‘Limited’
with its abbreviation ‘Bhd.’ or ‘Ltd.’

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ADVANTAGES AND DISADVANTAGES OF EACH OF ENTREPRENEURIAL OWNERSHIP

03 PRIVATE / PUBLIC
{CORPORATIONS}

Advantages Disadvantages
• Limited Liability - Limited to the capital • More difficult & costly to form
contributed/investment. • High set up cost
• Cost included charge to authorized capital,
• Ease of Ownership Transfer. professional fee, filing charges, printing of
Memorandum of Articles and Articles of
• Perpetual life- Not dependent upon the Association, shares certificate, company seal.
ages or resignation of members.
• High taxation.
• Greater Access to Capital
• Easily acquired by exchanging • For private limited company, have limited
shares ownership members.
• Loan
• Public Limited Co – increase • For private limited company, they have lack of
capital through issuance of bonds. freedom in transferring ownership – subject to
BOD’s approval.
• Management Expertise - Have BOD.
REGISTRATION PROCEDURE FOR BUSINESS OWNERSHIP

2.2.2

Registration Procedure

For Business Ownership

REGISTRATION PROCEDURE FOR BUSINESS OWNERSHIP

Starting A Sole Proprietorship/Partnership

Business includes every form of trade, commerce, craftsmanship, calling,

profession or other activity carried on for the purpose of gain, but does not include
any office or employment or any charitable undertaking or any occupation
specified in the Schedule of the Registration of Businesses Act 1956 (ROBA 1956) &
ROBA Rules 1957.

Two (2) type of Business:

Sole proprietorship:
Business wholly owned by a single individual using personal name as per his / her
identity card or trade name.

Partnership:
Business owned by two or more persons but not exceeding 20 persons. Identity
card name can’t be used as business name.
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REGISTRATION PROCEDURE FOR BUSINESS OWNERSHIP

Starting A Sole Proprietorship/Partnership

How to start a business?

1. Registration of a new business to be done within 30 days from the date of commencement
of the business.
2. Registration can be done at any SSM counter or through online via Ezbiz Online services at
ezbiz.ssm.com.my.
3. Complete the Business Registration Form (Form A). Refer to Guidelines For New Business
Registration. Business may be registered using personal name or using a trade name.
i. Personal Name - Business name using personal name as stated in the identity card is not
required to apply for business name approval.
ii. Trade Name - Complete business name approval form (Form PNA.42). Refer to
Guidelines for Business Name Application.
4. Business names approval is according to Rules 15, Rules of Business Registration 1957.
5. Business Registration can be made for a period of one (1) year and not more than five (5)
years.

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REGISTRATION PROCEDURE FOR BUSINESS OWNERSHIP

Road Map
registration

Ý
REGISTRATION PROCEDURE FOR BUSINESS OWNERSHIP

VISIT http://www.ssm.com.my/
HERE

smart

fun
pro

global
open
team
 Activity

01 Propose the best way to open a business from a given scenario

Faris and his five college friends had decided to make a frozen food business. Two
of them just a capitalist and not involved in business management. They made an
Agreement Contract to avoid confusing and conflict in future.

 State the business type that Faris and his friend want to build
 Explain THREE advantages and disadvantages of this business type

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 Activity

02 Propose the best way to open a business from a given scenario

“ Type of business entity that is owned and run by one individual and in which
there is no legal distinction between the owner and the business”.

 Based on statement, describe THREE advantages and THREE disadvantages

type of business above

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 2.2.3

Requirement In

Starting A Business
Requirement in Starting a Business

 Legal Structure
 Licenses And Permits
 Financial Requirements
 Insurance
 2.2.4

Procedure Registering a
Business
Conventional VS Online
 Activity

Explain procedure registering a business

Conventional VS Online

Why is it important to register a business

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Activity
 2.2.5

Various Ways to
Start a Business
Various Ways to Start a Business

01 Establishing a new business

02 Buying an existing business

03 Running a franchise
01 Establishing a new business

“ establish / starting a business” means to

build a company from scratch. It describes
the process of starting from nothing and
building an entire organization that solves a
problem in the marketplace….
01 Establishing a new business

1 2 3 4
Conduct
Start with a Make Your
Research Write a
Good New Business
About Your Business Plan
Business Idea Official
Business Idea

7 6 5
Build Your Protect Your Know Your
Business Business Finances
02 Buying an existing business

Buying an existing business is exactly what it

sounds like. The buyer typically takes over full
ownership of the business. The largest
advantage is having an existing blueprint
that can include important factors like an
established customer base, defined
operating expenses, and fully trained
employees…..
02 Buying an existing business

1 2 3 4
Find a Submit a
Value the Negotiate a
business to Letter of Intent
business purchase price
purchase (LOI)

7 6 5
Close the Obtain Complete due
transaction financing diligence
03 Running a franchise

A franchise is a business whereby the owner

licenses its operations—along with its
products, branding, and knowledge—in
exchange for a franchise fee.

The franchisor is the business that grants

licenses to franchisees….
03 Running a franchise

1 2 3 4
Find a Submit a
Value the Negotiate a
business to Letter of Intent
business purchase price
purchase (LOI)

7 6 5
Close the Obtain Complete due
transaction financing diligence
 Activity

Let’s
Do
Multiple Choice Questions.
Please a tick in the box you believe contains the correct answer.

If
Correct

The person who buy the right to use

1. the name of another business is a:
Franchisor
Shareholder
Managing Director
Franchisee

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 Activity
If
Correct
Which of the following is NOT a factor of
2. business start-up? Customer
Capital
Market
Enterprise
If
Correct

The private sector Which of the following is NOT a factor of

The public sector 3. business start-up?
Public limited companies
The voluntary sector

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 Activity

4. Which of the following is FALSE about partnership?

If
Correct

They are comprised of 2 to 20 people

At least one partner must have unlimited liability
Another name for a sleeping partner is a silent partner
A partnership agreement MUST be drawn up

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Thank you.

Q&A