These eight questions use invented businesses, so you can practise the skills from selecting an ownership form for a fictional case. Try each one before opening the answer.
Questions
Q1. Invented case: Kedai Buku Hana needs RM36 000 to open. Hana has RM12 000. What fraction of the need can she fund herself, and what is the gap?
Answer
12 000 ÷ 36 000 = one third, so the gap is 36 000 − 12 000 = RM24 000. State the gap in your answer, since finance reasoning starts from it. See liability, control and finance.
Q2. Hana borrows the RM24 000 as a sole proprietor, and the shop later owes RM24 000 with assets worth RM9 000. How much could fall on her personal property?
Answer
24 000 − 9 000 = RM15 000. As a sole proprietor, there is no legal wall between shop and owner, so the unpaid amount can reach her own assets.
Q3. A student writes: “Because the shop is registered, it will always be profitable.” Name the error.
Answer
It is an assumed benefit. Registration records the business but does not decide sales or costs. Use only what the case states, as in registration fact versus assumed benefit.
Q4. Invented case: “A landlord asks Kiran, a registered sole proprietor, to show his registration before renewing the lease.” Write one sentence using only case facts.
Answer
“Kiran’s registration gave him a document the landlord asked for before renewing the lease.” It quotes the case and adds no claim about profit or trust.
Q5. Two sisters, Lee Na and Mei Yi, start a tuition-notes business. Lee Na puts in RM8 000 and Mei Yi puts in RM7 000. Calculate the total capital and Lee Na’s share of it.
Answer
8 000 + 7 000 = RM15 000. Lee Na’s share is 8 000 ÷ 15 000 × 100 = 53.3% (to one decimal place), which is worth stating if profit sharing follows capital.
Q6. Complete the frame for Q5: “A partnership suits them because…, but a company would be better if…”
Answer
“A partnership suits them because the two sisters together raise RM15 000 and trust each other to share the work. A company would be better if they wanted their personal property protected from business debt, or needed a large group of outside investors.” Both halves use conditions, as taught in comparing two ownership choices.
Q7. Generic answer: “A private limited company has limited liability.” Rewrite it for Dobi Cepat, an invented laundry with a RM30 000 loan and a wish to protect the owner’s home.
Answer
“Dobi Cepat has a RM30 000 loan, and the owner wants to protect her home. A private limited company limits what she can lose to what she has put into the business, so her home is better protected than under a sole proprietorship.” The answer quotes two details, names the feature and states the effect.
Q8. Invented case: Amir sells furniture online and earns RM5 000 monthly. He wants to add a partner, Bala, who will invest RM20 000 but wants equal say, while Amir wants full control. Recommend a form and state the condition.
Answer
A model answer: “Amir should stay a sole proprietor because he wants full control and Bala’s wish for equal say conflicts with that. A partnership would be better if Amir decided that RM20 000 of extra stock was worth sharing decisions for.” The answer uses the RM20 000, control, and a condition that could flip the choice.
See using case evidence.
If you got these wrong
Q1 and Q2 belong to liability, control and finance. Q3 and Q4 need registration facts and assumed benefits.
Q5, Q6 and Q8 use fair comparison, and Q7 uses case evidence. Log each miss in the mistake log, and build a timed set with the practice session builder. For teacher support, see online one-to-one Business tuition.