Business Organizations: Types, Management, and Taxation

Business organizations

Table of Contents
INTRODUCTION...........................................................................................................................3
Business & Organisations in UK................................................................................................3
Legal business structure of companies in UK.............................................................................4
Sole trader...................................................................................................................................4
General Partnership.....................................................................................................................5
Limited Liability Partnership......................................................................................................6
Limited liability company ..........................................................................................................7
Recommendation.........................................................................................................................8
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................10

INTRODUCTION
Organisations plays an integral role in overall growth and development of a nation by
generating several opportunities of employment. It helps to enhance the job opportunities and
significantly contribute in the economic development of country (Buckley, Burton and Mirza,
2016). In the current report different type of forms of organisations are discussed in context of
given scenario. It comprises various business structures such as sole trader, limited liability
partnership, company along with their management, taxation, law and dissolution. Lastly, there
is recommendation have been given to select an appropriate structure as per the given case study
that will help to expand business effectively and earn potential profit margin.
Business & Organisations in UK
There are several business organisations are present in UK that are working in different
areas such as retail, hospitality and more. In context of IOM solution that different information
regarding company is given as under:
Nature and Management of company:
It is analysed that management comprise ample number of members who are responsible
to prepare effective strategies and policies for the betterment of company. Management is made
with several members such as Chief executive officer (CEO) board members, executive and non
executive directors and more. There are different type of structure can be adopt by entities based
on the level of operations (Dimitrova, 2017). It is monitored that IOM solution is operating as
sole trader organisation that is run as well controlled by a single business owner.
Source of laws:
There are ample of laws are followed by manager of IOM solution that helps to meet with
legal constraints in an efficient manner. Here, several legislations & compliances such as
business and employment protection law, Equality Act 2010, Health and safety at work act 1974
and more are followed by organisations in order to run business effectively.
Business transactions of company:
As per the given scenario, it is monitored that IOM solution is owned by a single owner
and deals in electrical parts. They are operating at local levels by providing necessary products to
local garages. In addition, the business has grown overtime in terms of profit as well as number
of employees that is essential to sustain at market place for longer run.

Duties, role and liabilities of directors:
Here, directors are responsible to take appropriate decisions and formulate necessary
policies for growth of company. It is the duty of directors to prepare annual report, business plan
of company (Grandori, 2017). They are liable for the losses incurred in company due to failure of
directors to perform their duties in an efficient manne4r. In addition, they are also liable to
maintain confidentiality in terms of data & information of company and acts in good faith for the
growth and benefit of business.
Memorandum of association ( MOA) & Article of association ( AOA) :
It is an essential document that is prepared at the time of registration of company. It
comprises several information regarding relationship between company and its shareholders,
objectives for which it has been formulate and more. On another side AOA is a document that is
also essential and can be modified by companies as per their requirements. Unlike, MOA there is
no prescribed format is used for this. Responsibility of members, transactions of company,
process to take the decisions and more are included in Article of association of a company.
Legal business structure of companies in UK
Sole trader
Sole trader is a person who initiate a business entity in order to earn higher profit margin.
Here, organisation is operated, managed as well as controlled by a single business owner who is
also responsible to take necessary decisions. In this structure, business owner can take individual
decisions without any interruption of external parties (Korableva and Kalimullina, 2016). There
are several organisations are being operated in UK by individuals owners with an aim to earn
higher profitability.
Management:
Here, whole business is managed by owner who is responsible for outcomes of business
activities. There is no compulsion to consider the suggestions of other persons to formulate
necessary strategies and policies for betterment of organisation. Business owner is liable for
profit and loss of organisation.
Taxation:
There are different rate as well as norms of tax are prevailing within country. Business
trader is required to pay tax on the profit of organisation. It is analysed that there are different tax