Cyberpreneurship: Chapter 2

2.1 Understand the management in business.

Management is the act of allocating resources to accomplish desired goals and objectives efficiently and effectively; it comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal.

2.1.1 Explain the management functions:

a. Planning

The first component of managing is planning. Planning covers the activity of formulating company’s policy and procedure to ensure the attainment of business mission, objectives and how to achieve them. As a manager of the business has to determine his business mission, objectives and device a workable strategy to achieve.

b. Organizing

Organize means “ to properly arrange”. In Business organizing refers to the activities of designing an organizational structure, dividing and assigning jobs and task among departments sections or units besides handling the infrastructure and operation method.

c. Leading

The act of getting the job done through other people is referred to in managerial functions as leading. Leading involves :

Assigning of jobs and responsibilities.
Motivating employees
Providing and receiving feedback.

d. Controlling

Controlling is a monitoring function to ensure that activities carried out are on the right track in achieving the goals set out by the business

2.2. Identify types and characteristics of business ownership:

a. Sole proprietorship

It is owned by one person
The simplest business structure
May have any number of employees
Requires a small amount of capital to start with
Only Malaysian citizens or permanent residents can register as an owner
Examples: tailor shops, beauty saloons, restaurants, launderettes and mini market

b. Partnership

A legal business entity with two or more partners but not exceeding 20 persons
Partners carry out the business, share the capital, profits and losses
Partnerships comprise two or more business partners pooling their resources in a business with a view to profit.
Only Malaysian citizens or permanent residents can register partnerships
Personal names or trade names can be used as business names

c. Private Limited Company

Cannot sell shares to the public
Distinguished by the appellation "Sendirian Berhad", shortened to "Sdn Bhd" or "S/B“
Private limited company is limited to 50 members, minimum 2 members
A minimum paid-up capital of only RM2 is needed to start a private limited company

d. Public Limited Company.