Business Law: Types of Business Organizations and Recommendations

Business Law
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Definition of Business organisation........................................................................................3
2. Sole Trader..............................................................................................................................3
3. Partnership...............................................................................................................................4
3.1. Limited Liability partnership (LLP).....................................................................................4
4. Incorporation forming company.............................................................................................5
4.1. Re- Registration...................................................................................................................5
4.2. Insolvency............................................................................................................................5
5. Main types of companies........................................................................................................6
5.1. Private limited company......................................................................................................6
5.2. Public limited company........................................................................................................6
5.3. Other forms of organisation.................................................................................................7
6. Recommendation.....................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9
and names.........................................................................................................................................9
Incorporation and names................................................................................................................10
Incorporation and names................................................................................................................10
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INTRODUCTION
Business is the enterprise or a company which seeks profits through various activities
performed in the organisation and provides goods and services to the economic system. Law
refers to the policies and rules and regulations made by government of the country which are to
be applicable on people and enforced by judicial decision. Business law is the portion of legal
system in which business affairs orderly conducted (Aronoff and Ward, 2016). It is needed by
the business to establish some rule and regulations which can reduce misunderstanding and
injury in the business. In this report Sam who is the sole trader of IOM solutions selling electrical
parts to local garages. He wants to expand his business but he is not sure about the form of
business he expand. In this report different types of businesses are mentioned and
recommendation is also made for the types of business he choose.
MAIN BODY
1. Definition of Business organisation
According to Dr. A.N. Agarwala, “ Business organisation is the enterprise, company who
buys and sells its resources from one person or group of persons of production and distribution of
goods with the view to earn profits and revenue.”
Business is established in different forms. It can be classified into any form like managed by
individual, government, group etc. Many of the small business start with the sole proprietorship
then they commit on partnership or company in the many years of time. There are various types
of business are mentioned. Theses are discuss below:
2. Sole Trader
A sole proprietorship is the first form of business which is used by Sam as he operates his
small business called IOM solutions where he sell electrical parts to local garages. He is running
that business for about eight years. He runs this business because it is easy to set up this type of
business for small entrepreneur (Doppelt, 2017). In this form of business, entrepreneur and the
business is same as in this business assets and liabilities are considered as the personal assets. It
means if the business is going in loss or liabilities are increased then entrepreneur is personally
liable for the loss of business cause. Raising of money can create difficulty because in this type
of business enterpriser cannot able to sell shares and also banks are not interested to provide
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