Business Law in UK: Types of Business Structures and Legal Framework

Business law

Table of Contents
INTRODUCTION...........................................................................................................................3
Business and Organizations in UK..................................................................................................3
The legal business structure of UK companies................................................................................5
Sole trader:..............................................................................................................................5
General partnership:...............................................................................................................5
Limited Liability Partnership:................................................................................................5
Limited Liability Company:...................................................................................................6
Recommendations for IOM Solutions:............................................................................................6
References:.......................................................................................................................................8

INTRODUCTION
The business refers to the sell and purchase of goods and services by the one person to
the other person. These involves the involvement of minimum two individuals. The laws that
rules the business of any organisation are called business law. The Companies Act 2006 is a type
of business law in UK. The company law explains about the duties and the powers of the
shareholders ad the director of the company. There is also a partnership act that laid the
provisions related to the duties and rights of partners of the firm(Adamou, Kyriakidou and
Connolly, 2021). This report explains about the business law along with different types of
business concern can be operated in UK. This report also outlines the merits of and tax liability
of all these firms. It also recommends Sam regarding the type of business he want to choose to
grow his present business concern.
Business and Organizations in UK
The business law deals with the different operations in businesses. It explains about the
relationship between the employer and its worker. There are certain rights of every employee
that must be exercised by all the employers in an organisation. The employee has the right to
take paid sick leaves, parental leaves, casual leaves, etc. These has to be followed by all the
business organisations in country. Moreover, the Employment Rights Act 1996, Equality Act
2010 explains about the equal rights of both the employer and employee of a firm. The vicarious
liability refers to the obligation of employer towards the working of employee. This is a kind of
master and servant relationship. The main principle of vicarious liability is that the employer is
responsible for all the acts of its subordinate. If any wrong act is done by the employee then, it
has to be faced by the employer. The negligence is a neglect act of not fulfilling the duty by an
individual. This negligence can create a loss to other party(Charlton, 2018). Hence, negligence is
a type of tort under the civil law of UK. The loss under negligence is compensatory as per the
UK civil law. The compensation can be in monetary or in kind. There are also several laws that
protects the employee from the mistreatment of employer. All the employees is eligible to have
the safe working environment as per the Health and Safety Act of UK. These laws are applicable
to all the industries and factories of the nation. Moreover, the business law also prohibits child
labour in the organisations. Moreover, if the age of child is more than 12 years then he can work
to maximum of 4 hours. There should be a gap of 1 hour after the work of 2 hours for every child