Hakim graduated from UNIKL with a degree in business administration. He is thinking of starting food and beverages (F&B) business. Hakim realised that he has little experience in culinary and kitchen skills. Thus, he plans to invite his friend, Ellie, who recently won an award in cooking Malay dishes and cakes at a local competition. Ellie has a diploma in food science. Hakim has savings of RM20,000 as capital. However, Ellie is reluctant to contribute capital as she only has savings of RM5,000. Hence, Hakim has requested his uncle to invest in his business. Hakim is unsure on the amount of capital needed to start the business. He drafted a business plan and marketing plan. They have decided to open a small food kiosk as a start. Hakim came to see you and asked for your advise.

Required:

1. Advise Hakim on the most suitable form of business entity for his F&B business. Explain THREE (3) reasons for choosing the type of business entity.

(9 marks)

2. Explain THREE (3) advantages and THREE (3) disadvantages of the type of business advice in (i).

(6 marks)

Answer rating: 100% (QA)

Based on Hakims situation the most suitable form of business entity for his FB business could be a partnership Here are three reasons for choosing this type of business entity Shared Responsibility an... View the full answer