Nature, Formation and Management of Business Organisation in the UK

BSc (Hons) 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
Sole Trader...........................................................................................................................5
General Partnership.............................................................................................................5
Partnership.......................................................................................................................... 6
Limited Liability....................................................................................................................7
Recommendations for IOM Solutions..................................................................................7
Conclusion................................................................................................................................ 8
REFERENCES............................................................................................................................. 8
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Introduction
Company Law or Business Law is the branch of the United Kingdom law that
gives importance to all types of business include all type of companies. The business
law of UK is entirely based on different statutes and especially the most important act
passed by the parliament of UK to safeguard the businesses companies known as
“Companies Act, 2006”. It is one of the best and also the longest act passed by the
UK parliament which consist of more than 1300 sections with 16 schedules. The
company act of UK is applicable to the whole of the nation, its sources are from
European Union Law and from common law decisions (Beynon-Davies,2021.). This
report will cover the sources of law, nature and management of a company, liabilities
in a different kinds of companies, vicarious liability of the employer. Apart from all
these topics, one case has been cover related to legal business structure in which
the recommendation has been given to the person name Sam who is operating a
business as a sole trader. To expand the business needs an advice about the
business structure which is beneficial for business.
Businesses & Organizations in the UK
The characteristic of every business has been clarified by its nature, the
nature of business describe what type of business it is and for what goals the
company is running and performing the business operations. Nature of the company
describes its legal structure, its form of industry, products and services in which the
company is dealing. There are some aspects which determine the nature of business
such as; Regular process, it means the company has profit generating process which
is regularly repeated. Economic activity, the functions and operations of the company
which maximize its profit. Utility creation, it means kind of product or services
provided by the company for the customer's to maximize their utility. Capital
requirement, the fund which company raise at the starting of business. Goods or
Services, it means the type of goods and services in which the company deals with, it
can be tangible it can be intangible. Risk, level of risk factor included in business.
Motive of business, whether company is running for profit or it is just a non-profit
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