Apply For A Start up Loan For Your Business

Apply For A Start up
Loan For Your
Business
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Table Of Contents
INTRODUCTION.........................................................................................3
TASK 1
A)Prepare a table which shows the various legal statuses of businesses that the business may
adopt. Find out about the strengths and weaknesses of these legal statuses.......................3
B) What are the weaknesses and strengths for evaluating and identifying the three sources of
finance which are available for business start-up after considering the business idea...........5
TASK 2
What are the three sectors within the UK economy where business can be operated. Explain
about the differences between these three sectors? Describe about their value to the UK
economy....................................................................................................7
TASK 3
Explain about the two HR policies and describe about their value into the current
organisations.............................................................................................9
CONCLUSION..........................................................................................10
REFERENCES..........................................................................................11
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INTRODUCTION
The business structure refers to that type of structure where it defines who owns the
company, how it profits are distributed and also explains which manager perform what tasks.
Business structure is necessary for the liability and tax purposes, as it depends on the
structure of the business. Under this head, taxes have been charged differently and managers
and owners in the event of wrong doing will have different levels of responsibility. In this
report, the analysis has been done on the various legal statuses of businesses that the business
can adopt. (Vernon, V., 2015).The analysis has been done on the strengths and weaknesses of
the three sources of finance which is available for the business start-up. The research has
been done on the HR policies and its importance into the modern work place. The chosen
organisation is TESCO. The imaginary business that can be included into this retail sector is
of the medicine business. TESCO is the multinational merchandise retailer. It is the leader in
the UK market. Its main objective is that to prioritise their customers and take care about the
needs and preferences of their customers.
TASK 1
A)Prepare a table which shows the various legal statuses of businesses that the business may
adopt. Find out about the strengths and weaknesses of these legal statuses
There are majorly five types of business structure which exist into real and practical world. It
has been discussed into the following manner:
SR.NO
.
Type Of
Business
Structure
Description
1. Sole
Proprietorship
It is the most common type of business structure named as the
sole proprietorship. A sole proprietorship is owned and run by
the only one person. (Raby, S. and Gregson, G., 2018). For
having the full control over the business, sole proprietorship is
one of the good option. It does not produce a separate
business entity. It includes both their personal income and
expenditure on business.
2. Partnerships Partnership refers to the two or more individual who owns
and operates the business together. Partnership can be
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considered either as the general partnership or limited
partnership. Under this head, they agrees on the common legal
terms and conditions. They are also known as the
unincorporated entities and they are self employed by nature.
3. Limited Liability
Partnership
LLP is a kind of different form of corporate business which
gives the advantage of restricted accountability of the flexible
nature of partnership and the company also. (Fischer, E.,
2019). It is fully liable for its assets and also is the unrelated
lawful institution. The accountability of the colleagues is
restricted to the agreed contribution in the LLP
4. Limited
Company
This kind of company has its own lawful identity. The
company’s financial aspect are different from the owners and
taxes have been charged into the different style. The company
always owns its profits and pays taxes on them. It distributes a
certain portion to shareholders as dividends and retains the
rest as in the form of working capital.
5. Business
Corporation
A business corporation is defined in the manner that which
provides the entity a different legal entity from its owners. It
is expensive and difficult in terms of setting up it. It also
required with more tax requirements and regulations.
Strengths of Sole Proprietorship: The main advantage of sole proprietorship is that it is
easy to set up. The owner needs to ensure that no one else run this type of business under the
same name.
Weaknesses of Sole Proprietorship: Under this kind of business, the owners are fully liable
for every kind of action. (Sibande, M. D. V., 2019). On the sole proprietorship, self
employment taxes has been applied on it. Business continuity has been end with the death or
departure of the owner.
Strengths of Partnerships: Under this kind of business, it bridges the gap in knowledge and
skills. A prospective partner always brings infusion of cash into the business. It also provides
a chance for distributing the financial burden for expenses and capital expenses which is
required for running the business.
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