The Structure of Business - BUS0005NFBNM

BUS0005NFBNM
The Structure of Business
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Table of Contents
Introductions:...................................................................................................................................3
Question One:..................................................................................................................................4
Construct a table to show the various legal statuses of businesses (such as PLC,
LTD, Registered Charity etc.) that your business may adopt. Identify the relative strengths and
weaknesses of these legal statuses...............................................................................................4
Considering your business idea, identify and evaluate the strengths and weaknesses of THREE
sources of finance available to your business start-up.................................................................7
Question Two:.................................................................................................................................9
Identify three sectors within the UK economy in which a business can operate. What are
the differences between the three sectors? Comment on their value to the UK economy..........9
Question Three...............................................................................................................................13
Identify at least two HR policies and comment on their importance to the modern
workplace (for example Health & Safety policies and equality and Diversity policies)...........13
Conclusion.....................................................................................................................................15
References......................................................................................................................................16
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Introductions:
UK government is huge concerned about the economy of the country because COVID 19
pandemic destroyed many sectors of the country. The country’s economy mainly depends on the
service sectors which were closed during the pandemic. There are also two sectors which
includes primary sectors and manufacturing sectors. United Kingdom government want to help
the business man who wants to start a business and the businessman can take loan from the
government limit £500 to £25000. Taking this money a businessman man can generate a
company which can operate its business in any sectors like primary, secondary and tertiary
industry. To open up a business a company has to establish a structure. In this report the structure
of the business, the strength and weakness of different source of finances, different economic
sectors where business can operate and different HR polices will be discussed.
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Question One:
Construct a table to show the various legal statuses of businesses (such as
PLC, LTD, Registered Charity etc.) that your business may adopt. Identify
the relative strengths and weaknesses of these legal statuses
There are many legal statuses of business one can choose to start a business such as sole trader,
limited company, partnership, limited liability, registered charity and private limited company
etc. people choose a business status by evaluating its strength and weakness. Every business
status has some strength and weakness from all the businesses which has the most strength
basically people generally choose that business the most but there is also exceptional case like
some doing business for charity purposes in that case weakness and strength does not count
(Cooke, 2016).
Company
Name
Legal Status Strength Weakness
Private
Limited
Company
(LTD).
A private limited company or
LTD is a business entity which
limits the liability of owner to
share. Private companies are
limited by the share (Hunt &
Bishop 2018). There are many
things one will need to form a
private company such as
 Company must have
name and address
 Must have one
shareholder and director.
 Company should have
memorandum
 Those who have more
 Owner’s finance is
separated from
company’s finance
(Armstrong &
Michael 2017).
 It has a
constitution which
guides
shareholders and
board of directors.
 Private company
ltd has tax
benefits.
 It does not have
any specific life
time (Cooke,
 Registration
process is
time
consuming
 There is
complexity in
division of
ownership
 The
compliance
formalities of
private
limited
company is
hectic.
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