Different Types of Businesses and Their Legal Formation

Law (7RQF)

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in Booklet.....................................................................................................................1
TASK 2............................................................................................................................................1
Investigate the different types of businesses (incorporated and unincorporated) with their legal
way of formation.........................................................................................................................1
Management and Funding of different forms of business..........................................................2
Mention advantage and disadvantage.........................................................................................3
Differences among legislation, standards and regulations analysing their impact on business..4
Impact of company, employment and contract law upon a business..........................................4
TASK 3............................................................................................................................................5
Effectiveness of legal advise and legal solutions........................................................................6
CONCLUSION ..............................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Law is one of the important sector which provides a system of rules implicated on a
particular country so that a set of actions can be determined in order to perform various activities
in lawful manner. Legal system in the country defines a correct and ethical manner in order to
perform various operations. UK possess oldest legal system in the world and various other
countries adopt their legal system and established their own legal system (Drummonds, 2016).
In this project formation of different types of businesses with their management and funding is
mentioned. Together with this legal solutions are provided to different business issues.
TASK 1
Covered in Booklet
TASK 2
Investigate the different types of businesses (incorporated and unincorporated) with their legal
way of formation
Formation of a business organisation is done in order to perform business activity so that
profits can be generated. Establishing a business is available with number of options that differs
in formation, capital requirement, funding and management and each needs to be accessed and
selected on the basis of suitable requirements. Some of the options available with James and
Jordan are defined as follows-
Unincorporated businesses
Business organisations that are not legally registered as per law and do not possess any
legal implications. This form of business do not possess separate legal entity and application of
rules and regulations as per law is minimum (Jadhav, 2012). Such type of organization deals
with only those business under which legality is there by only to an extent. Some businesses that
are unincorporated are discussed as:
Sole Trader: It is considered as simplest form in which business can be established as
only a single person is required to establish such businesses. Formulation of sole trader business
requires minimum legal requirements and considered as one of the most preferred business form
to established. Sole trader business provides unlimited liability with undiluted ownership.
National insurance number required to be obtained and registration with HRMC is done for sole
1