Ahmad, ah chong and samy wish to start up a new company. They are however confused as to which type of company to set up. They have a choice of partnership, sole-proprietor, and corporation. They are unsure of the positive and negative issue that may be attached to each of the institutions.

Whilst the company was being to set up, Ah Chong left to Japan to purchase a building for business purpose for the company. In Japan, Ah Chong faced issues that he could not decide on with regards to purchasing the building. It calls Ahmad and Samy but is unable to reach them. He makes decision out of absolute necessity and purchases the building. Later Ahmad and Samy dispute this purchase.

Advise Ahmad, Ah Chong and Samy on the best form of business entity to set up.