Business Law: Sources, Government Role, Types of Organizations, and Legal Formation

This document provides an overview of business law, including the sources of law, the role of government in law making, different types of business organizations, and their legal formation. It discusses the differences between legislative body, common law, and European Union law as sources of law. It also explains the role of the government in the law making process and how statutory and common law are applied within the court. Additionally, it explores the legal formation of different types of business organizations such as sole proprietorship, partnership firm, private company limited by share, and public company limited by share. The document also discusses how these organizations are managed and funded. Overall, it emphasizes the importance of following the law and regulation in business activities.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1) Differences sources of law....................................................................................................3
P2) Role of government in law making process and how statutory and common law is applied
within the court............................................................................................................................3
LO3..................................................................................................................................................4
P4) How different types off business organisation are legally formed.......................................4
P5) How those organisations are managed and funded...............................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................6

INTRODUCTION
Business law is the law which has been derived by legislative body where main intention
was to govern commercial sector successfully. Entity which follows the law gets number of
benefits else penalty can be also imposed. The view point of report topic related to sources of
law, governments role in law making procedure along within types of organisation and their
legal process will be discussed.
LO1
P1) Differences sources of law
In order to enforce appropriate laws and regulation, there is a requirement of multiple
source which can help in commencing the law. The main sources of UK law are:
Legislative Body: The most active body for forming law in UK is legislative body which
is working for the welfare of general public. Here, law is commenced by the member of
parliament who carries supreme power within UK.
Common law: This body also enforces the law in UK where focus of this types of law is
based on situation which arises (Kubasek and et. al., 2020). Here, in order to form any of the
common law, responsibility is in the hand of judiciary body.
European Union Law: UK have a vast law and regulation where EU law have
contributed significantly till Brexit. This body have commenced law in different section where it
is in the field of commercial sector or even in health or for public rights.
P2) Role of government in law making process and how statutory and common law is applied
within the court
Nation requires government which can support in forming the law and regulation and
maintaining each and every thing in a systematic manner. The role of UK government is huge in
law making process. The law making process is lengthy where government has to support in
reviewing each and every steps. The major role is to being changes within the drafted bill if it is
necessary. Also, they are needed to conduct voting process in order to ensure that whether
members are satisfied or not with bill (Parker and Ward, 2020). Also, their role is to ensure that
suitable title must be given and trying to conduct all of the steps in a systematic order. Finally,
focusing on obtaining the approval from Queen who holds supreme power in UK.

Statutory law and common law are different form each other but ultimate goal is to form
law which are result oriented. In justice court, statutory law can be applied easily as judges are
needed to ensure about laws and regulation and according to the scenario of the case penalty is
needed to be charged upon the defaulters. When it comes for applying common law, it is
necessary for the judges to ensure that case cannot be solved with the help statutory law then
they passed new law under common law for declaring the decision. This is how common law and
statutory law is applied within the justice court.
LO3
P4) How different types off business organisation are legally formed.
Sole Proprietorship: It is the organisation which is very much easy to commence and
perform business activity if business needs to be conducted by individual person. There is very
less restriction which makes comfortable for investor to invest in sole proprietorship. To form
any of the sole trader, investor must have National Insurance number which must be registered
for self-assessment with HMRC (HM Revenue & Customs).
Partnership Firm: The business entity which is commenced only after the involvement
of minimum two partners is known as partnership firm. This types of business needs to
understand that they must take any of the decision with mutual understandings of the partners
(Hill, 2020). The upper limit of partners is 20 which must be not exceed and if it happens then
business will not fall under the category of partnership firm. The legal process of forming any of
the partnership firm is done by forming deed along with HMRC. The power of making any
decision is given only to the authorised person.
Private Company limited by Share: It is the company which is formed by the limited
number of partners. There are number of restrictions which is imposed upon business
organisation as all of the guidelines of Company Act must be followed in it. Whenever any of the
partnership firm is commenced legally, number of criteria must be fulfilled. Starting with the
selection of name and address of a company. Then, Memorandum of Association and Article of
Association needs to be formed. Including the list of members who will be the part of a
company. Then all of those documents must be submitted within Companies House.

Public Company limited by Share: The company where interest of outsider can be seen
is known as public company. This types of company requires huge amount of fund for operating
business activity. Any of the public company needs to fulfil number of requirements for
operating within the market (Jain, 2020). Firstly, this types of company requires to select name
of the organisation with its proper address of head office. Secondly, it needs to work on MOA
and AOA and which is to be prepared by first director and first shareholder of a company. All of
those documents must be provided to Companies House.
P5) How those organisations are managed and funded
Organisation Managed Funded
Sole Proprietorship All of the decision is to be
taken by sole proprietors
themselves as outsiders are
not allowed to interfere in it.
To manage the fund, personal
investment can be helpful
along with credit card can be
one of the main source of this
business.
Partnership Authorised partner managed
all of the activity.
Investment made by partners,
credit card and loan from
relatives and family member
can allow to manage fund.
Private Company limited
by Share
Manager and members has
the responsibility of
managing the work.
Loan from financial
institution, credit can be main
source for them in raising
fund (Lidstone, 2020).
Public Company limited by
Share
Company secretary, directors,
CEO of the company
managed day to day affairs.
Shares, debentures, Financial
Institution can be helpful in
raising fund.

CONCLUSION
This file helps to understand that business activity can be only managed in that respective
condition if all of the work is being done as per the requirement of law and regulation.
Companies needs to follow proper rules and regulation for performing any of the business
activity and failure in this respective work can impose high penalty.
REFERENCES
Books & Journals
Kubasek, N. and et. al., 2020. Dynamic business law. McGraw-Hill.
Parker, D. and Ward, L., 2020. Business and Law in Australia.
Hill, C. A., 2020. The New Realism in Business Law and Economics: Introduction. Wisconsin
Law Review, 2020, p.439.
Jain, M., 2020. Trade Secret law in India. Journal of Corporate Governance & International
Business Law, 3(1).
Lidstone, H. K., 2020. Business Law Litigators Should Know. Available at SSRN 2925440.