Key Sources of Laws for Business Organizations in the UK

Business Management
BMP4002 Business Law
Assessment 2
Report describing the key sources of laws
as the legal context for business
organizations in the UK
Submitted by:
Name:
ID:
1

Contents
Table of Contents
Introduction .............................................................................................................................3
Businesses & Organizations in the UK..................................................................................3
The legal business structure of UK companies.....................................................................5
Recommendations for IOM Solution...................................................................................8
Conclusion................................................................................................................................ 8
References ............................................................................................................................... 9
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Introduction
A company is the primary structure which is required to carry out commercial
activities in order to make profits and run business. The law that governs the formation of
different types business organizations is the Companies Act 2006. There are other laws and
statutes such as, Employment law, contract law, partnership etc. The legal jurisdiction of UK
is spread in three division which includes England and Wales, Northern Ireland and
Scotland. These jurisdiction are regulated by common laws (Nilufer von Bismarck2021).
Business law also commonly applies to all these jurisdiction. Business laws are important for
regulating the business conducts and practices. There are many form of business
organizations having recognized by law namely, Sole proprietorship, partnership, limited
liability partnership and limited company. All these organizations have distinct
characteristics, advantages and disadvantages. In this report, all the relevant facets relating to
business law and their types and how they are legally formed will be discussed.
Businesses & Organizations in the UK
A Company is formed to administer all the functions relating to manufacturing of
goods, production, sales of goods etc all these activities are commercial in nature and such
transactions and activities must be regulated to prevent misuse of resources and human capital
by such organizations. For any company its nature and management is its identity and the
objectives of a company must be certain, therefore the company Act 2006, imposed certain
obligations on the companies to prepare their objective resolutions and nature of company
(McGaughey, 2021.). A company is a separate legal entity after its lawful incorporation and
registration which is operated by its key faculties and such companies needs to comply with
the business laws.
The functionality of a company is determined by its management which helps in running the
day to day activities of the company. Management keeps the company well organized and
update. A company is divided into several departments like, Human resources, marketing,
financial, sales and production department. All these departments collectively function to
keep the functionality of a business. The management plays very significant role in applying
the policies and keeping work culture healthy at work place.
A registered company is under an obligations to follow the rules and regulations
established by laws in order to carry out business lawfully. The purpose of business law is to
prevent misconduct by employer to ensure safety towards business faculties who are workers
and employees in an organization. There is an Employment law, which imposed statutory
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