Sunshine and Rainbow are best friends who own and share a business of purchasing and selling second hand machineries at Klang. All this while, they bear profits and liabilities of their business together. They plan to expand their business by carrying on the business of general merchants, traders as well as main distributors in all products of second-hand machines including heavy machineries for heavy duty purposes. In order to expand their business to the next level, Sunshine and Rainbow wishes to register a company under the Companies Act 2016. They plan to register their company with the name of 'Optimus Prime Sdn. Bhd.'. The overall capital of their business is RM1,000,000 and they will accept RM1,000,000 ordinary shares with the price of RM1.00 each fully paid in the new company as a full consideration.

Advise Sunshine and Rainbow on the differences between company and their existing business organization together with its advantages. (20 marks)