Business Case Study: Hassan, Harjeet And Berhare Capital
Hassan, Harjeet and Henry should raise the working capital through loan capital rather than share capital. Intention to expand the business, Hassan, Harjeet and Henry need to raise RM2 million working capital but none of them able to contribute any capital on right issue share for the expansion of business. However, 3Bros Berhad have a retail shop worth RM 3million in Pavilion as Restaurant 1Malaysia which in accordance with Section 21(1) and 21(2) Company Act 2016, company have full power to operate company including in charge of any property and to do any action that may enter into a transaction. Therefore, this is the way that enables 3Bros Berhad raise funds due to fulfill the requirement of that Act. (having retail shop)
Through applying …show more content…
By doing this, they have the full power to make any important decision such as acquiring other company to be their subsidiary and how to expand their business. So, the management may save up a lot of time in preparing presentation slide to explain current states of the company and current projects planning to run. For sure, if there is shareholders, before holding the meeting, satisfying them with quality meals will increase the company’s expenses. Without having shareholders help 3Bros Berhad to reduce expenditure and tax …show more content…
It refers to a loan that is used to generate proceeds that are in turn used to repay the loan. Basically, a borrower takes out a loan used to finance business activities that generate revenue. Then the borrower takes the revenue generated from those business activities and uses it to repay the money that was borrowed to finance the activities. It refers to a loan that is used to generate proceeds that are in turn used to repay the loan. In the case of 3Bros Berhad, they are planning to raise RM 2 Million to expand their business. Furthermore, with the restaurant business that is currently operating in Pavilion, Bukit Bintang, the interest for the loan can be paid irrespective whether the company makes a profit or
Through applying …show more content…
By doing this, they have the full power to make any important decision such as acquiring other company to be their subsidiary and how to expand their business. So, the management may save up a lot of time in preparing presentation slide to explain current states of the company and current projects planning to run. For sure, if there is shareholders, before holding the meeting, satisfying them with quality meals will increase the company’s expenses. Without having shareholders help 3Bros Berhad to reduce expenditure and tax …show more content…
It refers to a loan that is used to generate proceeds that are in turn used to repay the loan. Basically, a borrower takes out a loan used to finance business activities that generate revenue. Then the borrower takes the revenue generated from those business activities and uses it to repay the money that was borrowed to finance the activities. It refers to a loan that is used to generate proceeds that are in turn used to repay the loan. In the case of 3Bros Berhad, they are planning to raise RM 2 Million to expand their business. Furthermore, with the restaurant business that is currently operating in Pavilion, Bukit Bintang, the interest for the loan can be paid irrespective whether the company makes a profit or