Different Types of Dismissal and Sources of Finance in Business Law

This article discusses the different types of dismissal in business law, including fair dismissal, unfair dismissal, constructive dismissal, and wrongful dismissal. It also explores the main sources of finance that an individual may consider when setting up a new business. Additionally, it outlines the various documents that need to be submitted before receiving a certificate of incorporation for a new business.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Sophia is confused as to whether or not she has been dismissed. Explain the different types of
dismissal......................................................................................................................................3
Advise Sophia of her legal position with regards to First Media Ltd..........................................4
Discuss main sources of finance that she may wish to consider when setting up a business......4
Outline the various documents that Sophia will need to submit before receiving a certificate of
incorporation for her new business..............................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................7

INTRODUCTION
Business law is legal law which discussion about the importance of rules and regulations in
the field of commercial sector. There are different guidelines introduced by law and some of
them has been formed by business entity in order to attain the goals on specific time period. It is
necessary to understand that law and regulations are the key source through which any of the
entity can take effective decision for attaining the goals. In context of the file, one of the case
study will be explained where major focus will be on different types of dismissal., main sources
of finance. Along with this, documents will be mentioned which are required for the purpose of
obtaining the certificate of incorporation.
MAIN BODY
Sophia is confused as to whether or not she has been dismissed. Explain the different types of
dismissal.
Looking at the scenario of the case, it is necessary to understand that as per the
Employment Law it is mandatory for any of the employer to provide the suitable working
environment to the employees so that they can perform their task easily. It is not necessary for
employee to work within the office premises if they don’t meet out the requirement of law. But,
in the above situation, Sophia was forced to work in the respective given area else she will be
fired which is completely a wrong statement given by the entity. Below, some of the ways of
dismissal will be mentioned which will allow to understand that whether Sophia was dismissed
or not form the company.
Fair Dismissal: It is one of those process through which employees are removed from
the business organization. This are those situations where employees take those decisions which
are not in the favour of company and which is also illegal as per the law and regulations (Miller,
2016). Some of the popular way through which employee are removed from employment
contract fairly are their capabilities or conduct, redundancy, dual employment without obtaining
permission from the organization and many more.
Unfair Dismissal: This are those form of dismissal which creates issues for the business
organization because the employee who has been removed through illegal process gets the right
to take legal action against the defaulter. The situation of unfair dismissal occurs in that

respective condition where company has not given the correct reason to dismiss the of the
employee. Even some of the situation are there where reason was unfair. Here, employees get the
option to take legal action against the employer for claiming the damage and even different
penalties can be imposed upon the organization.
Constructive Dismissal: It is that respective situation where employee resigns from the
company because of the breach of employment contract from the side of organization. Here,
constructive dismissal provides the option to employee for wrongful dismissal (Dismissing staff,
2020). Some of the condition where condition of constructive dismissal occurs are unfairly
company increases the workload, forcing the employee to work in a dangerous condition, cut
their wages without agreement and many more.
Wrongful Dismissal: It is defined as the circumstances where terms and condition of
employee’s contract are breached. It is the situation where employer dismisses the employee
without giving any of the prior notice. If an employee’s thinks that they fall under the condition
of wrongful dismissal, then they can take it to the employment tribunal.
After knowing about different types of dismissal process it can be easily said that the
dismissal which had taken place for Sophia was related with Constructive Dismissal where
management forces the employee to work in a dangerous area where life can be heard.
Advise Sophia of her legal position with regards to First Media Ltd.
It was First Media Ltd. who forced Sophia to work in the dangerous area where her life
and other new staff who has joined office in recent time period. Manager of the company insists
Sophia to work in the similar condition and if she will not work then she will be fired from the
company. It was the reason Sophia decided to leave the office. It is one of the Constructive
Dismissal where employee gets the right to claim for damages (Mayss and Reed, 2018). It means
that the legal position of Sophia was very strong where she can easily claim damage from the
company. But, it will be important for Sophia to prove the situation that it was one of the
constructive dismissal as burden of proof always falls upon innocent party.
Discuss main sources of finance that she may wish to consider when setting up a business.
Once, Sophia resigned from Film Media Ltd. she was willing to start her own business
but it is necessary for her to understand that while commencing any of the business activity,

there is the requirement of huge amount of money. In this respective situation, she must have the
idea and knowledge regarding the major source through which she raises fund for the purpose of
conducting business activity in a desire manner. Below, some of the sources has been discussed
in detail:
Lease: It is one of the option through which a business entity can raise fund. In this types
of process of raise fund, organization is required to raise capital by placing its assets on
agreement with the party from which fund is going to be raised (Ahlström, 2019). Lease
payments are always required to be paid at the time of beginning of the year which allows the
organization to raise capital throughout the year for making payment of time. It is one of the
favourable option which an entity can opt for performing its business activity.
Friends and Relative: It is among one of the strongest source through which fund can be
raised. It is necessary to understand that whenever any of the investor tries to raise capital
through friends and relatives they get the option to raises at a very low price which is beneficial
for them in obtaining the profit. Here, delay in payment doesn’t forces to pay heavy amount of
penalty.
Angel Investors: This is the form of raising fund where individuals and businesses
which shows their interest in in small business for their growth and survival in the market for
longer time period. Here, angel investor tries to focus on economic return from the specific area
due to which they invest within new business and which can be helpful in new entity for
performing its business activity.
Personal Saving: It is also one of the way through which an entity can be commenced.
Here, investor has to bring his or her person saving or equity with the business for the purpose of
performing its business activity for the purpose of surviving within the market for longer time
period so that business can start to earn profit for its stability in the market (Mahony and et. al.,
2018).
This are some of the main way through which Sophia can raise fund for her business
through which she can easily perform her business activity in the best possible manner. It is
necessary to understand that at the time of raising fund proper agreement should be prepared so

that in future period of time she will not face any of the problem for performing its business
activity.
Outline the various documents that Sophia will need to submit before receiving a certificate of
incorporation for her new business.
In present scenario, it is necessary that while incorporating any of the business, proper
legal documentation must be done so that goals and target can be accomplished in a best possible
manner. Different form of business requires to fulfil different criteria in order to commence the
business. As Sophia is willing to incorporate new entity she must be willing to work at a bigger
ground by obtaining legal rights (Armour and Sako, 2020). Below, some of the necessary
documents which are required to be prepared by Sophia are mentioned which can allow her to
start business activity.
 Firstly, it is necessary for her to select the name of an entity which should not match with
any of the existing entity. Also, address should be decided from where business
transaction will be performed so that any of the useful documents can be transferred to
that particular office.
 It becomes crucial for her to prepare Article of Association and Memorandum of
Association which will be helpful for making any of the business decision.
 Then, she must be able to prepare the list of every single member in an organisation who
will play the part of supporting member in making any of the decision.
 Statutory registers must be done which includes director of the company, company
secretary and many more (What documents will I receive when setting up my limited
Company, 2019).
 Finally, all of the documents which has been prepared must be submitted within
Companies House with registration fees.
It is the basic process which must be followed by Sophia for incorporating her Company as
per the Company Act 2006.

CONCLUSION
After having the detail analysis on the report, it can be easily concluded that business law is
one of the crucial law for the commercial sector for its growth in the market. Any of the
organisation do not gets the right to remove any of the employee without having any of the fair
justification and if that happens then employees gets the option to take legal action for claiming
damages. There are different ways through which business can raise fund but it is the choice of
investor or member of a company to decide that which one is favourable for them in
accomplishing the future goals. Finally, if any of the entity is going to be established, there are
certain rules and regulations regarding the documents which is needed to be completed for
setting up of business activity.
REFERENCES
Books & Journals
Miller, R. L., 2016. Business Law Today, Comprehensive. Cengage learning.
Mayss, A. and Reed, A., 2018. European Business Litigation. Routledge.
Ahlström, H., 2019. Policy Hotspots for Sustainability: Changes in the EU Regulation of
Sustainable Business and Finance. Sustainability, 11(2), p.499.
Mahony, T. and et. al., 2018, January. If we post it they will come: A small business perspective
of social media marketing. In Proceedings of the Australasian Computer Science Week
Multiconference (pp. 1-10).
Armour, J. and Sako, M., 2020. AI-enabled business models in legal services: from traditional
law firms to next-generation law companies?. Journal of Professions and
Organization, 7(1), pp.27-46.
Online
Dismissing staff. 2020. [Online]. Available Through: <https://www.gov.uk/dismiss-staff>
What documents will I receive when setting up my limited Company. 2019. [Online]. Available
Through: <https://www.yourcompanyformations.co.uk/blog/what-documents-will-i-
receive-when-setting-up-my-limited-company/ >