answer the question

Assignment 3 (20 marks) Pair or Individual Answer TWO (2) questions Question 1: Lucy is running a successful business from home selling cakes and biscuits to corporate customers. She enjoys a yearly income of RM50000. In order to expand her business, she has incorporated her business under the Companies Act 2016. The company's name is So Yum Sdn Bhd. She is the director and the sole shareholder in this company. Evaluate the pros and cons of incorporating her business under the Companies Act 2016. (Estimate: 500 words) (10 marks) Question 2: Joe is a director of Sunshine Son Bhd. The company has 30 members and is registered under the Companies Act 2016 as a limited liability private company. Due to the Covid-19 pandemic, the business has suffered greatly and in need of money. In order to attract new shareholders, he promises potential shareholders a discount if they buy the company's shares from April 2021 till December 2021. Based on this scenario, answer ALL the following questions: (a) Analyse the benefits of financing a company's business by raising its share capital. (6 marks) (b) differentiate between ordinary shares and preference shares. (4 marks)