ASSUMED

KNOWLEDGE
BUSINESS ORGANISATIONS
Nurul Aini Sofiya
Dina Ayesha
Nurfatihah Izzati
Siti Sarah Jauhari
PROFIT ORIENTED & NOT-FOR-
PROFIT ORGANISATIONS
(NFPO)
 Criteria Profit Not-for Profit
Objectives To earn income and To serve particular cause,
profit community need or

Profit vs Handling of profit Distribute to owners, or

social objective

Reinvest into the

Not-for
reinvest in the business organisation

Ownership and Individuals, partnerships, No owners, govern by

governance or shareholders who BODs or trustee to

Profit have a financial stake oversee organisation’s

operation

Source of revenue Sales of goods and Membership fees,

services donations

Taxes Profit subject to May be eligible for

corporate tax tax-exempt status
Retail and consumer goods Humanitarian organisation

Hospitality and Tourism

PRIVATE LIMITED
COMPANIES & PUBLIC
LIMITED COMPANIES
Private Limited
★ Own by small groups of
shareholders
★ Shares are not freely transferable
★ Subjects to fewer regulatory
requirements
★ Internal sources of funding
Public Limited
★ Unlimited number of
shareholders
★ Limited number of shares can
be subscribed by public
★ Extensive regulatory
requirements and financial
disclosures obligations
★ Raise funds by issuing shares
Private Limited Company Public Limited Company
PUBLIC
SECTOR VS PRIVATE
SECTOR
 Public
- Businesses that are owned or
controlled by the government
- Focuses on providing goods and
services to the general public at
cheaper rates than the private
sector
- Source of capital from tax
collections, bonds, government
financial support
Examples : PETRONAS,
Malaysia Digital Economy Corporation,
MDEC and TABUNG HAJI
Private
- Businesses owned and
managed by individuals or
business entities
- Focuses on generating
profit from the business
operations
- Source of capital from
owners’ own funds, loans,
shares issued and
debentures
Examples: ASTRO, CELCOM,
MYDIN
LISTED &
UNLISTED
COMPANIES
PROS
LISTED COMPANIES
Market visibility
Can attract attention from potential
investors and improve reputation
Access to capital
Easier to raise capital by selling shares
to wide range of investors
LISTED COMPANIES
Market Volatility
Share prices listed is subject to market
fluctuations
Increased Regulatory Compliance
Listed companies are subject to more
stringent regulatory requirements
UNLISTED COMPANIES
Greater control
Owners have more control over
decision-making.
Privacy
Not required to disclose as much
information as listed companies
UNLISTED COMPANIES
CONS
Limited access to capital
More challenging to raise large amounts of
capital. Often rely on small pool of investors
Limited Visibility
May struggle to attract attention from
potential investors and build the reputation
 FAMILY OWNED
BUSINESS & LISTED
COMPANIES
FAMILY OWNED BUSINESS
& LISTED COMPANIES
Differences Family Owned Business Listed Companies

Access of finance Limited Unlimited

resources

Orientation Inwardly oriented Profit oriented

Membership Involuntary Voluntary

Example Jakel, MUAZ Axiata, Sime Darby