The Structure of Business: Legal Status, Frameworks, and Sources of Finance

BUS0005NFBNM THE
STRUCTURE OF BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
QUESTION 1.................................................................................................................................................3
Various frameworks and legal statuses of businesses..............................................................................3
Weaknesses and strengths need to consider while establishing the business...........................................5
Sources of finance that is available to business startup............................................................................6
QUESTION 2.................................................................................................................................................8
Three sectors within UK in which businesses operates and difference between these sectors.................8
QUESTION 3...............................................................................................................................................11
HR policies and their significance to modern workplace.......................................................................11
CONCLUSION.............................................................................................................................................14
REFERENCES..............................................................................................................................................15

INTRODUCTION
Business structure means company or organization in regards to its legal status. It trickles
many factors that are part of running a business successfully. These are corporation, partnership,
sole proprietorship and limited liability Company etc. Scenario of report is to consider myself as
a career oriented person who wants to be an entrepreneur and going to startup an online retail
business. Hence, for this these questions need to get addressed.
The study will cover legal status and framework of various types of business. It will
evaluate strengths and weaknesses while starting up a new business in UK. It will identify three
sources of finance which is available to startups. The report will identify sectors in UK in which
a business can operate and also explain the difference among them. Furthermore, study will
describe two human resource polices and will explain their importance in today's workplace.
MAIN BODY
QUESTION 1
Various frameworks and legal statuses of businesses
Business structure is the system which outlines certain activities that step direction for
achieving the objectives of an organization. It is essential to choose most appropriate structure
that helps to create legal recognition for the trade. Various types of businesses are described in
this table as follows -
Basis Private
company
limited by
shares
Public
limited
company
Community
interest
company
Charitable
incorporate
d
organization
Limited
liability
partnership
Framework The
Company
must have
use limited
The name of
the company
should be
ended with
This type of
companies
is launched
newly from
This type of
company gets
registered in
England and
This is
hybrid in
nature. It is
mixture of

in the end
of its name
(Types of
registered
companies,
2020).
PLC or
public
limited
company.
the year
2005. This
is generally
established
for the
community
benefit.
Wales. It was
brought into
action by
Charities Act
2006.
plc and
partnership.
It is separate
legal entity
(Vershitsky,
Takhumova
and
Glushchenko,
2019).
Legal No fixed
capital
required is
being set
for private
limited
company.
It is
generally
notice that
it is less
than 100
pounds.
The capital
requirement
must be up
to 50000
pounds.
The profits
and assets
must be
permanently
retained in
the CIC.
The
registration is
mandatory
both as
charity and
company
limited by
guarantee.
They have to
submit
annual return
and accounts
set every
year.
There is no
such
statutory
requirement
is to do
written
agreements
of LLP or to
get registered
but should
have an
agreement
for a business
practice.
Each
Liability The
company
has limited
liability.
This type of
company has
not limited
liability.
Community
interest
company
could be
limited by
its share or
The company
is limited by
guarantee
(Ajagbe, Cho
and Peter,
There is
limited
liability on
the partners.
Each partner
is liable to