Types of Business Organisation and Legal Consequences for IOM Solutions

Business Law

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

INTRODUCTION
Business law is a body of law that governs organisations and commerce’s and it is frequently
regarded as a component of civil law that deals with both private and public law issues. It
governs commercial recruiting methods, corporate contracts, consumer products sales as well as
manufacturing process of the companies. Different sorts of businesses use commercial laws in
their operations(QC, 2022). The research of IOM Limited, which sells various electrical parts to
several local garages, is included in this project report. This company is handled by Sam, who is
a sole trader who has been in business for eight years. This firm has been growing in the market
for the past two years and Sam is finding it difficult to run his business under pressure. The
following report is going to cover the various types of business organisation forms which can be
opt by the management of the IOM solution in order to reorganised their firm. This reports also
focus on the legal consequences associated with the various organizations and in the end this
reports give recommendation to the organisation to get the suitable organisational structure.
MAIN BODY
Explanation of different types of business organisation available to IOM solution for
reorganising.
Since the last two years, the market for IOM solutions has grown, putting greater pressure on
Sam, who is a sole trader. In order to match the market's need and expansion Companies are
required to choose from a variety of market-based choices for managing and expanding their
businesses. In an era of fierce rivalry among businesses, it is critical to concentrate on selecting
the most appropriate sort of organisation(Davidson and Forsythe, 2020). It is critical to choose the
ideal type of business approach in order to boost a company's efficiency and performance. All
big organisations in the worldwide and domestic markets should concentrate on building a key
strategy for picking the most appropriate form of business. This would assist Sam in reducing
work pressure and allowing them to expand their workforce in order to fulfil market demand.
The following are some of the possibilities available to the IOM solution has been discussed
below: -
 Sole trader: -It is a type of business in which a single person can run and own a firm for
a variety of purposes. In this case, the operation of the company is contingent on the