Business Law: Types of Business Structures and Legal Obligations in the UK

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY ..................................................................................................................................3
Business and Organizations in UK.............................................................................................3
The legal business structure of UK companies...........................................................................4
Sole Trader ............................................................................................................................5
General Partnership ...............................................................................................................5
Partnership .............................................................................................................................6
Limited Liability ....................................................................................................................6
Recommendations for IOM Solutions........................................................................................7
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8
INTRODUCTION
The term business is being considered as an entity which may be defined as the process
of undertaking any commercial and industrial activity in order to generate profit. The laws which
are related to the business helps in regulating the working of the enterprises in a very effective
manner. The body of law helps the business organisation in performing their business activities
in a very effective as these activities has been governed by these laws. Corporate contract, sales,
hiring and recruiting practices operational practices and many more has been regulates by this
law. An important role has been played by these business enterprises in improving the living

standard of society people by providing them good quality of services. All the business
organisation run with a motive in the competitive market is to earn more and more profit by
following all the corporate social responsibility. The stability of the company is totally depend
on the profits which are earned by them, if they not earn the profit then the stability of the
company are in danger. This report provide solution to SAM for his organisation IOM solution.
The following report is going to cover the different types of business structure with their legal
obligations and the role of company directors within the company(Bennett, Smith and
Montebruno, 2020).
MAIN BODY
Business and Organizations in UK
Companies Act of 2006 of United Kingdom helps in effective management of the
business activities in the country. It is a type of business law which lays down standards which
help to carry out functioning of the business and to operate it smoothly. Employees are
considered the greatest asset which is why their behaviour and conduct should be properly
regulated and their interests are protected by the employment laws. With respect to companies,
they must abide by the companies act to follow legal obligations that are stated in order to avoid
legal liabilities. Business while operating amongst their market competitions get a distinct
professional individuality which helps in getting a legal identification. It includes components
like perpetual existence, differentiating properties, same stamp for the whole business and the
rights and responsibilities on the members to comply with the laws because non- compliance
gives rise to the business suing someone or getting sued for professional misconduct. While
starting any form of business various agreements are concluded for its formation in its name.
These are concluded under differentiating heads and clauses which make them different from
each other like an agreement formed on sale and purchase of assets or on shares of the business,
etc(Brown, Hall and Davis, 2019).
When a business is operating on a large scale there are several times that the employees
behave unprofessionally which gives rise to different liabilities and one of such is Vicarious
liabilities which arise when there is dishonest or wrongful behaviour by the employee while they
are still working in the organization, then for their actions the employer is held responsible and
liable and they have to act on such situations within a stipulated time so that legal problems can