Suria has decided to incorporate her cybercafe business to a private company limited by shares under

the name of Suria Kencana Caf Sdn. Bhd. ('SKC') to expand her business. Therefore, she is in need

of more capital and is now contemplating whether to raise capital by issuing shares or by borrowing.

Suria approach you seeking your advise on whether she should raise share capital or loan capital for

SKC and support your answer with minimum two (2) legal reasons.

[10 marks]

Note to students:

Your answer shall consist of:

1. Brief introduction.

2. State your opinion / choice and explain your reason one by one in paragraphs.

3. Conclusion.