Different Types of Business Organisation for IOM Solution

This report discusses the different types of business organisations available to IOM Solution for reorganising, their legal consequences, and recommendations for selecting the appropriate business structure. The report covers sole trader, partnership, limited liability company, and cooperation. It also provides recommendations for effective marketing channels and deep research of the market before choosing the business structure.

Business Law

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................2
Explanation of different types of business organisation available to IOM solution for
reorganising.................................................................................................................................2
Legal consequences of each business entity................................................................................3
Recommendation for IOM electronics for selecting appropriate business..................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business law is related to those area of the law of land which is developed by the
government for the management of the business in legal manner. All the rules and regulations
related to the business and commerce are mentioned in this part of the law. All the business
organisation of the country has to follow these rules and regulation if they want to protect the
organisation from the penalties and punishment of the law. All types of business contracts,
dealing, tax issues and many more are dealt with the business law of the land. Business law not
only deal with the rule followed by the existing business but also provide different legal structure
to introduce new business. This report is based on the company named IOM solution which are
working on the field of electronic solutions. It is one of the growing business which is running
under legal stricture of Sole ownership which is controlled by the owner named named Sam.
From the past two years Sam has to face many difficulties in relation to legal structure of the
business. This report provides brief discussion related to different forms of the business which
are present with the owner of IOM electrical.
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MAIN BODY
Explanation of different types of business organisation available to IOM solution for
reorganising.
The management of the IOM solution has achieved great hike and growth in the market
from the last two years. The management of the company has make great efforts to make their
business successful which helps them to develop effective name of the company in the market.
The business operations of the company are increased by the huge number which is not possible
to be operated under the status of the sole ownership. It is very important for the management of
the organisation that they adopt any other legal structure of the business which enables the
company to operate their business in effective manner (Aoki, 2022). There are many legal
structure are present in the business law of the land but due to the stiff competition in the market
it is essential for the management to select the structure after great research and the analysation.
The selection of the effective business structure helps the Sam to reduce their pressure and
makes the company more competitive and productive in nature. The brief discussion related to
diferent structure of the business are given below:
Sole trader: It is one of the old and most common structure of the business under which the who
le business is controlled by the single owner. In this type of business structure all the decision of
the business has taken by the single owner and not the part are available to take the decision in
the absence of the particular owner of the business. In this type of business structure, the legal
idenity of the owner and the business is same and both treated equally. It is one of those stricture
which only suitable for small businesses whose operation of the business are small and the
company are operating in small area. All the income generated from the business in this
structure are treated the the personal income of the owner and be taxed according to them. This
structure of the business cam be adopted by the Sam if they want to take all the profit of
business. The flexibility in this type of business structure are more because of few regulation by
the government.
Partnership: It is related to those agreement of a business which is related to the relationship of
the partners under which the business are carried on by all and one of them acting for all. Under
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this type of business structure, the business of the company are controlled and managed by two
or more partners. The profits of a business are distributed among the partners in their profit
sharing ration on which the partners are decided to be on. All the rules and regulations of the
business are governed by the partnership act (France and Regmi, 2019). It is one of the important
and valuable structure of the business under which all the worked and responsibilities of the
business are controlled by the partners of the business. There are different two types of
partnerships are present in the market which is general partnership and limited liability
partnership. Both type of partnership are valuable and important for the company. General
partnership is related to those structure of the partnership under which the partner are liable for
the loss in addition of their capital in the business. The losses bear by the company has to faced
by the partners as whole not up to the company. In limited partnership all the partners of the
business liable to the losses of the company only limited to their capital in the company. It is an
opportunity for the Sam that they have developed effective organisation. One of the most
valuable feature which can be enjoyed by the Sam is that the level of capital can be increased if
the company more partners.
Limited liability company: It is one of the most used and valuable structure of the company
which is used by most of the organisation in the world. Under this structure of the business, there
are many owners of the company and the liability of all the owners are limited to their liability
and the guarantee given by them. The organisation which uses this form of the business has to
follow the rules and regulations of the companies act developed by the law of land. This type of
business structure are favourable for the big business because it provide many features to the
company. Under this structure of the business, the owner and the organisation are treated
separately and the legal liability of both the party are different. It is very beneficial for the Sam
to use this business structure of the business because it helps them to conduct big operation
business.
Cooperation:
It can be described as separate entity and also legal person as it helps them to generate profit for
business. It is a form in which company develop its business separate from their personal liability
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from company (Bouncken, Qiu and Clauss, 2020). In this, corporation has different rights and
responsibility which can be enjoyed by individual like owning assets, paying taxes and hiring
employees. It is a business which consist state regulation that impose broad structure as well as
taxation for both business as well as personal revenue (Jecklin, Craig and Steinmeyer, 2022). It
is a form of business that can be adopted by Sam for IOM solution as it helps them to limits
liability of owner. In this profit and loss of business can be belongs from cooperation. In this,
transfer to business to new owner it easy and personal assets of owner is not liable for payment
of debt of business.
Legal consequences of each business entity
There are different types of legal type of business entities are defined above the report under
which different types of business structure are defined which can be used by the management of
IOM Solutions which gas operated their business in small range. There are different types of
consequences are present in each of the following cases because all the structure of the business
are governed by the law of the land. In the land of United there are two types of organisation
which is unincorporated and corporates. There are manyu difference are present in both the
concept such as unincorporated organisation refers to those organisation under which the
interference of the government are less. It is related to those organisation which is running in the
country without any prior notice or the rules of the government. It is one of the most important
task of these type of companies that they have followed the rules and regulations made by the
company in order to lead the market place of the organisation. There are different types of
organisation are cam under this structure of the company such as sole proprietorship and the
partnership.
Private organisation – It is related to those organisation under which the liability of the
members are limited to their share capital. One of the key feature which differentiate the private
company from public is that the private company are not allowed to offer their shares in the
market.
Public organisation- Public company refers to those company which is not required to be write
limited to their name. It is one of the important and valuable feature of the public company that
they are allowed to offer their share in the market and take the funds for the business. There are
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different types of requirements are present in the market which the company has to follow to
become public company (McKay, 2018). It is very important to incorporate the company that
they have minimum two directors and also secretariat. It is important for them to develop
memorandum and articles for the company. The taxes provided by the public company are very
high as they play important role for the development of the nation so it is important for the
management of the organisation to follow the rules and regulations effectively in the market.
Sole Trader- It is related to those business which is introduce and controlled by the single owner
of the business. It is one of the important and valuable concept of the business under which the
involvement of the government are very less in the organisation. It is essential for the business of
the organisation that they have use INHRC number for the registration of the company. The
main sources of funds in this type of business are arranged by the family members, friends and
relatives of the owner.
Partnership- The business of partnership is one of the valuable business and the structure of the
business are governed by the partnership agreements. There are many business organisations are
present in the market which are having special flexibility in the market. The legal structure has
played important role in the development of the company in the organisation.
Recommendation for IOM electronics for selecting appropriate business
The management of the IOM solutions is one of the dynamic management of the world
which has contain effective managers which has contains different experienced managers which
has done all their functions effectively in the market. There are some recommendations are
present which has can make the organisation more productive in nature and the brief discussion
related to the same given below:
 it is recommended to the management of the company that they have use effective
marketing channels which helps the company to operate their business in effective
manner.
 It is recommended to the management of the organisation to choose the structure of the
business after deep research of the market.
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CONCLUSION
It is concluded from this report that legal structure of the business has played important role in
the management of the organisation because it helps the organisation in their process of
expansion. There are different types of legal; structure are present in the market which can be
used by the management are concluded in this report.
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REFERENCES
Books and Journals:
Aoki, M., 2022. Incentives to share knowledge and risk: An aspect of the Japanese industrial
organisation. In Incentives and Economic Systems (pp. 57-75). Routledge.
France, A. and Regmi, P., 2019. Information Accountability in a Non-profit
Organisation. Journal of New Business Ideas & Trends, 17(1).
Jecklin, C.C., Craig, J.B. and Steinmeyer, A., 2022, February. Building Trust and Organisation-
Based Self-Esteem through Organisational Care During a Crisis: Evidence from an
Exemplar Family Firm. In Australian Centre for Entrepreneurship Research Exchange
Conference 2022.
McKay, I., 2018. Organisation 1. In Anarchism (pp. 115-128). Routledge.
Nusser, L. and Zimprich, D., 2021. Order effects in the recall of autobiographical memories:
evidence for an organisation along temporal and emotional features. Memory, 29(3),
pp.379-395.
Oria, K., Wafula, C. and Mumma, J., 2022. Assessing Relationship between Capacity Building
and Entrepreneurial Activities among Community Based Organisation over a Three-
year Term in Western Region of Kenya. East African Journal of Business and
Economics, 5(1), pp.132-153.
Ranjbar, H., 2020. Analysis of the effect of production and investment types in selected
Organisation of Islamic Cooperation countries. Modiriat-e-farda, 62(62), p.3.
Ruiz-Rivera, M.J. and Lemaître, A., 2019. Popular and Solidarity Economy in Ecuador:
Historical Overview, Institutional Trajectories and Types of Organisation. In Social
Enterprise in Latin America (pp. 139-168). Routledge.
Sloboda, Z., 2021. Development and (re) organisation of the Czech LGBT+ movement (1989–
2021). East European Politics, pp.1-22.
Smart, A., 2019. Performing the Sacra: priestly roles and their organisation in Roman Britain
(Archaeopress Roman Archaeology 53). Oxford: Archaeopress; 978-1-78969-097-2£
34. Antiquity, 93(372), pp.1686-1687.
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