Internal Verification of Assessment Decisions - BTEC (RQF)

This document provides information about the internal verification process for assessment decisions in BTEC (RQF) qualifications. It explains the role of assessors and internal verifiers in ensuring accurate and fair assessments. The document includes a checklist for verifying assessment criteria, assessing the accuracy of feedback, and identifying opportunities for improved performance. It also includes a feedback form for a summative assignment in Business Law, with assessment criteria and grades. The document provides general guidelines for assignment preparation and submission, as well as a student declaration regarding plagiarism. Finally, it includes an assignment brief and guidance for a Business Law assignment, with specific requirements for a handbook and a presentation.

Higher Nationals
Internal verification of assessment decisions – BTEC
(RQF)
INTERNAL VERIFICATION – ASSESSMENT DECISIONS
Programme title Business Law
Assesso
r
Sanduni Gunasekara Internal Verifier
Unit(s) Unit 7
Assignment title Business Law
Student’s name
List which assessment
criteria the Assessor has
awarded.
Nilukshan Ravichandran
Pass Merit Distinction
INTERNAL VERIFIER CHECKLIST
Do the assessment criteria awarded
match those shown in the assignmentY/N
brief?
IsthePass/Merit/Distinctiongrade
awarded justified by the assessor’s
comments on the student work?
Has the work been assessed
accurately?
Is the feedback to the student:
Give details:
Constructive?
Linked to relevant assessment criteria?
Identifying opportunities for improved
performance?
Y/N
Y/N
Y/N
Y/N
Y/N
Agreeing actions?
Does the assessment decision need
amending?
Assessor signature
Y/N
Y/N
Date
Internal Verifier signature
Programme Leader signature (if
required)
Date
Date

Confirm action completed
Remedial action taken
Give details:
Assessor signature Date
Internal Verifier
signature Date
ProgrammeLeader
signature (if required)Date
Higher Nationals - Summative Assignment Feedback Form
Business Law Assignment 01 Nilukshan Ravichandran LH-388202

Student Name/ID
Unit Title
Nilukshan Ravichandran - LH-38820
Business Law
Assignment Number02Assessor
14.08.2021Date Received 1st
Submission Datesubmission
Re-submission DateDateReceived2nd submission
Assessor Feedback:
LO1 Explain the basic nature of the legal system
Pass, Merit & Distinction P1
Descripts
P2 M1 D1
LO2 Illustrate the potential impact of the law on a business
Pass, Merit & Distinction P3
Descripts
M2 D1
LO3 Examine the formation of different types of business organisations
Pass, Merit & Distinction P4
Descripts
P5 M3 D2
Grade: Assessor Signature: Date:
Resubmission Feedback:
Grade: Assessor Signature: Date:
Internal Verifier’s Comments:
Signature & Date:
Business Law Assignment 01 Nilukshan Ravichandran LH-388203

Pearson
Higher Nationals in
Business
Unit: 7 Business Law Assignment 01
Business Law Assignment 01 Nilukshan Ravichandran LH-388204

General Guidelines
1. A Cover page or title page – You should always attach a title page to your assignment. Use
previous page as your cover sheet and make sure all the details are accurately filled.
2. Attach this brief as the first section of your assignment.
3. All the assignments should be prepared using a word processing software.
4. All the assignments should be printed on A4 sized papers. Use single side printing.
5. Allow 1” for top, bottom , right margins and 1.25” for the left margin of each page.
Word Processing Rules
1. The font size should be 12 point, and should be in the style of Time New Roman.
2. Use 1.5 line spacing. Left justify all paragraphs.
3. Ensure that all the headings are consistent in terms of the font size and font style.
4. Use footer function in the word processor to insert Your Name, Subject, Assignment No,
and Page Number on each page. This is useful if individual sheets become detached for any
reason.
5. Use word processing application spell check and grammar check function to help editing your
assignment.
Important Points:
1. Carefully check the hand in date and the instructions given in the assignment. Late submissions
will not be accepted.
2. Ensure that you give yourself enough time to complete the assignment by the due date.
3. Excuses of any nature will not be accepted for failure to hand in the work on time.
4. You must take responsibility for managing your own time effectively.
5. If you are unable to hand in your assignment on time and have valid reasons such as illness, you
may apply (in writing) for an extension.
6. Failure to achieve at least PASS criteria will result in a REFERRAL grade .
7. Non-submission of work without valid reasons will lead to an automatic RE FERRAL. You
will then be asked to complete an alternative assignment.
8. If you use other people’s work or ideas in your assignment, reference them properly using
HARVARD referencing system to avoid plagiarism. You have to provide both in-text citation
and a reference list.
Business Law Assignment 01 Nilukshan Ravichandran LH-38820 5

9. If you are proven to be guilty of plagiarism or any academic misconduct, your grade could be
reduced to A REFERRAL or at worst you could be expelled from the course
Business Law Assignment 01 Nilukshan Ravichandran LH-388206

Student Declaration
I hereby, declare that I know what plagiarism entails, namely to use another’s work and to present it as my own without attributing the sources i
I know that plagiarism is a punishable offence because it constitutes theft.
I understand the plagiarism and copying policy of the Edexcel UK.
I know what the consequences will be if I plagiaries or copy another’s work in any of the assignments for this program.
I declare therefore that all work presented by me for every aspects of my program, will be my own, and where I have made use of another’s wor
I acknowledge that the attachment of this document signed or not, constitutes a binding agreement between myself and Edexcel UK.
I understand that my assignment will not be considered as submitted if this document is not
attached to the attached.
Student’s Signature:
(Provide E-mail ID)
Date:29.08.2021
(Provide Submission Date)
Business Law Assignment 01 Nilukshan Ravichandran LH-388207

Higher National Certificate/Diploma in Business
Assignment Brief
Student Name /ID Number Nilukshan Ravichandra – LH - 38820
Unit Number and Title Unit 7: Business Law
Academic Year 2019/20
Unit Tutor Sanduni Gunasekara
Assignment Title Explain the basic nature of the legal system and Illustrate
the potential impact of the law on a business
Issue Date
Submission Date 14.08.2021
IV Name & Date
Submission format
SECTION A:
The submission should be in the form of an individual handbook. This should be written in a
concise, formal business style using single spacing and font size 12. You are required to make use
of headings, paragraphs and subsections as appropriate, and all work must be supported with
research and referenced using Harvard referencing system.
The recommended word limit is 2,000–2,500 words, but learner will not be penalized for
exceeding the total word limit.
SECTION B:
This should be a 10-minute individual presentation prepared using a relevant software that includes
a 5 minutes question and answer session. The presentation slides and speaker notes should be
attached together and submitted as one copy. Students are required to make effective use of
headings, bullet points and subsections as appropriate. Research should be referenced using
Harvard referencing system.
The recommended length is 1500–2000 words, including speaker notes, although students will not
be penalized for exceeding 2000 words.
Unit Learning Outcomes:
LO1 Explain the basic nature of the legal system.
LO2 Illustrate the potential impact of the law on a business.
Business Law Assignment 01 Nilukshan Ravichandran LH-38820 8

LO3 Examine the formation of different types of business organisations
Assignment Brief and Guidance:
SECTION A:
Scenario:
You are working in a law firm and advising new start-up companies on the legal system and key legislations that are required to
………………………………………………………………………………………………………
………………………………………………..
The handbook must include the following sections:
An explanation of the legal system.
An overview of the sources of law.
An explanation of the role of the government in law-making.
An explanation and a critical reflection of the legal systems that are relevant for new businesses that the startup companies shou
Explain and evaluate the potential implications of law on a business such as, copyright
law, contract law and employment law etc.
Business Law Assignment 01 Nilukshan Ravichandran LH-388209

SECTION B:
Scenario:
In your role as a paralegal, you have been invited to attend a Small Business Expo conference that will be held in Sri Lanka. You
The presentation will consist of the following:
An introduction to different types and classification of business organisations in both public and private sectors, providing speci
A review of the advantages and disadvantages of forming different types organisations in the light of various legal structures.
An evaluation of how different organizations are managed and funded in both public and private sectors e.g., limited companies,
Business Law Assignment 01 Nilukshan Ravichandran LH-3882010

Grading Rubric
Grading Criteria AchievedFeedback
P1 Explain different sources of law. Handbook (page 18-27)
P2 Explain the role of government in lawmaking
and how statutory and common law is applied in the justice courts.
P3 Using specific examples illustrate how company, employment and contract law has a potential impact upon business.
P4 Explore how different types of business organisations are legally formed.
Handbook (page 28-31)
Handbook (Page 31-41)
Presentation (Page 41- 57)
P5 Explain how business organisations are managed and
funded.
M1 Evaluate the effectiveness of the legal system in terms of recent reforms and developments.
M2 Differentiate between legislation, regulations
and standards to analyse potential impacts upon business.
Presentation (Page 41- 57)
M3 Assess the advantages and disadvantages of the
formation of different types of business organisations.
D1 Provide a coherent and critical evaluation of
the legal system and law, with evidence drawn from
a range of different relevant examples to support judgements.
D2 Critically review and evaluate types of business organisations.
Business LawAssignment 01
Nilukshan Ravichandran LH-3882011

Business Law Assignment 01 Nilukshan Ravichandran LH-3882012

OBSERVATION RECORD
Learner name:
Qualification:BTEC Level 4-HNC/HND Diploma (RQF)
Unit number & title:Unit
Description of activity undertaken
Assessment criteria targeted
How the activity covers the requirements of the assessment criteria (this does not confirm
achievement of assessment criteria or confer an assessment decision)
Learner name:
Learner signature: Assessor name:
Assessor signature: Date:
Business Law Assignment 01 Nilukshan Ravichandran LH-3882013

WITNESS STATEMENT
Learner name:
Qualification:BTEC Level 4-HNC/HND Diploma (RQF)
Unit number & title:Unit
Description of activity undertaken (please be as specific as possible)
Assessment criteria (for which the activity provides evidence)
How the activity covers the requirements of the assessment criteria, including how and where the
activity took place (this does not confirm achievement of assessment criteria or confer an assessment decision)
Witness name:
Witness signature: Learner name: Learner signature:
Assessor name: Assessor signature:
Job role:
Date:
Date:
Date:
Business Law Assignment 01 Nilukshan Ravichandran LH-3882014

Contents
Grading Rubric............................................................................................................................10
Acknowledgement.......................................................................................................................15
Executive Summary.....................................................................................................................16
Introduction.................................................................................................................................17
Section A - Hand Book.............................................................................................................. 18
1. Introduction and Legal System of Law................................................................................. 18
1.1. Classifications of Law......................................................................................................20
2. Different Sources of law......................................................................................................... 21
2.1. Constitution...................................................................................................................... 21
2.2. Treaties............................................................................................................................ 21
2.3. Statutes............................................................................................................................. 22
2.3.1. Interpretation............................................................................................................ 22
2.3.2. Common Law........................................................................................................... 23
2.3.3. Judicial review......................................................................................................... 24
2.3.4. Private law................................................................................................................ 24
3. Role of the government in law-making. – how statutory and common law is applied in
the justice courts......................................................................................................................... 25
3.1. Making laws................................................................................................................. 29
4. Statutory and common law Similarities and Differences..................................................... 31
5. The potential implications of law in new businesses............................................................. 34
6.Impact that law can make to the business between legislation, regulations and standards........40
SECTION B - Presentation........................................................................................................ 42
1. Introduction to different types and classification of business organizations................... 42
1.1. Public Sector................................................................................................................ 43
Funding and Management in Public Sector..................................................................... 44
1.2. Private Sector.............................................................................................................. 45
1.2.1. Sole Traders.......................................................................................................... 45
Funding and management in Sole Traders....................................................................... 47
1.2.2. Partnership............................................................................................................... 49
Funding and management in Partnership compare to sole trader.................................. 50
Company............................................................................................................................. 52
Business Law Assignment 01 Nilukshan Ravichandran LH-38820 15

Private Limited Company53
Funding and Management in Private Limited Companies53
Public Limited Company55
References57
Figure 1 Hierarchy Of Courts Of Sri Lanka26
Figure 2 Law Making Process30
Figure 3 Presentation Slide 1.43
Figure 4 Presentation Slide 2.43
Figure 5 Presentation Slide 3.44
Figure 6 Presentation Slide 4.46
Figure 7 Presentation Slide 5.50
Figure 8 Presentation Slide 6.54
Figure 9 Presentation Slide 7.56
Business Law Assignment 01 Nilukshan Ravichandran LH-3882016

Acknowledgement
In performing this assignment. Author had to take the help and guideline of respected lecturer, who deserve our greatest gratitud
consultants.
Also, thank you to the lecturer who introduced me to the Business Law lesson with practical
examples. I would also like to expand me deepest gratitude to guided me in writing this assignment
Business Law Assignment 01 Nilukshan Ravichandran LH-3882017

Executive Summary
Business Law Assignment has everything as a handbook and presentation on business law. The booklet contains the legal system
Business law to mitigate incomplete access to the legal system and promote business in legal area. Small businesses and entrepr
that their business interests are protected.
Business Law Assignment 01 Nilukshan Ravichandran LH-3882018

Introduction
The Knowledge of business law report can help entrepreneurs and business person to make
decisions. There are countless laws that apply to the business world. These laws help define
moral acts, provide stability. In addition, they can work on conflict resolution. This report
focuses primarily on four main aspects of business law. In the first section, you talk about the
nature of the legal system and the legislation that affects the organization in Sri Lanka and UK. It
details the law-making process in the Sri Lanka and UK and the difference between common law
and statutory laws.
The second section explains several important types of business organization. In addition, the
potential effects of the law on the organization are also evaluated. In the final section,
advantages and disadvantages of classification of business organization has mentioned.
When think of the law, think of courts or lawyers. Many people see the law as a regulation or
other order of government. Each of these insights is at least partially accurate because each is
part of our legal system. The law is an important component of our culture. Like language, it
reflects the values, history, and current issues that make up society. A true understanding of our
society requires a basic understanding of the nature and function of our legal system. In recent
years, the need to understand the legal system has grown in importance. This is reflected in the
huge increase in the use of attorneys and the corresponding growth in the number of attorneys.
Law in Business Effective managers and employees must develop knowledge of both law and
business because people involved in business are also involved in and heavily influenced by
laws related to business.
Business Law Assignment 01 Nilukshan Ravichandran LH-38820 19

Section A - Hand Book
1. Introduction and Legal System of Law
A legal reform program is needed to maintain the Sri Lankan and UK legal system. The legal system
is based on the rule of law and consists of administrative institutions, judicial and regulatory bodies,
and a general legal framework that is responsible for implementing and enforcing laws and policies.
A region like the UK is constantly changing and therefore needs some major reforms to its legal
system. Apart from this, the government also ensures that companies operating in the countries are
the least affected by the reforms (Siem and Deakin, 2014).
The inclusion of environmental responsibility in the Companies Law of 2006, the protection of
personal data of citizens as proposed in the General Data Protection Regulation 2018, the prevention
of discrimination in the Equality Law of 2010 and various specific reforms introduced in current UK
law. These laws set the course of action for both employees and employers, and ensure that the rules
are followed.
We cannot fully understand the law in our lives without first defining it basic nature. This
requires recognizing that law is both practical and productive. But Philosophers and legal
scholars disagree about a single definition of "law." The term is sometimes applied to a legal
system, as when we talk about the "rule of law." Here we mean a political (Government) system
in which all persons within the system, including the most powerful leaders, must follow the
rules called 'law'.
In addition, they are all responsible to the court system applied. In Sri Lanka and UK, the
constitution forms the basis of the legal system. The legal system includes social control
processes. It provides institutions such as legislatures and government agencies to create codes
of conduct. It also establishes police forces and courts to enforce rules and resolve disputes. Law
as rules More commonly, when people talk about "law", they mean the rules themselves. “The
law says you must…” is a phrase hear often. This is the meaning in which law is generally used
in our conferences.
Business Law Assignment 01 Nilukshan Ravichandran LH-38820 20

Thus, the following definition may be useful: Law is a set of principles, rules and standards of
behavior that have general application in society. Established by a Government authority for that
community activating penalties when they violate the functions of the law the basic functions of
the law are:
1. Keeping the peace.
2. Enforcing standards of conduct and maintaining order.
3. Facilitating planning.
4. Promoting social justice.
The first two functions of keeping peace, enforcing codes of conduct, and maintaining order,
help to reinforce another particularly important function of law: to facilitate planning. Contract
law is an example of this function. By making the courts available to enforce contracts, the legal
system ensures that parties to contracts keep their promises or pay for the damages they cause.
For example, through contracts, a manufacturing company can count on receiving the raw
materials and machinery it ordered or get money from the contracted supplier to cover the
additional costs of purchasing spare parts.
While all societies use law to maintain peace and order, societies like ours also use law to
achieve additional goals. Tax laws, for example, seek not only to increase revenue from public
spending but also to redistribute wealth through higher taxes on the inheritance and income of
the wealthy. Antitrust laws seek to prevent certain practices that can reduce competition and thus
increase prices. Consumer laws serve a wide range of purposes, from prohibiting the sale of
unsafe products to providing more information to buyers.
The function of these laws is to promote social justice by protecting the disadvantaged. The
courts, in law enforcement, also seem to seek to balance the scales in favor of the "little man"
when dealing with big corporations, big workers, and big government. Helping the average
citizen deal with an economy that is highly complex and wholly impersonal is also the goal of
federal legislation creating Social Security, welfare, housing, and medicine programs.
Business Law Assignment 01 Nilukshan Ravichandran LH-38820 21

1.1. Classifications of Law
There are many ways to divide the law. The first is the distinction between substantive law and
procedural law. Another important distinction is between criminal law and civil law. This section
examines these legal classifications. Substantive law versus procedural law Substantive law
defines the rights and duties that govern individuals in their actions in society. Assignments tend
to take the form of a command: "Do this!" or "Don't do that!" An example is the Civil Rights Act
of 1964. It tells employers not to discriminate between people in hiring and employment on the
basis of race, color, religion, sex, or national origin. The substantive law also defines rights and
privileges. An example of this is the freedom of expression granted by the SL &
UKConstitution. Another is your right to defend yourself if you are physically attacked, the so-
called right to self- defense. 7 A slightly different example is the privilege of receiving food
stamps if you meet the requirements set by Congress. The Code of Procedure establishes the
rules under which the substantive norms of law apply. The rules regarding the issues that a court
can decide, how a trial must be conducted, and how a court enforces a judgment are part of the
Code of Procedure.
It is the community, through government employees called prosecutors (such as district
attorneys), who initiates legal action against the perpetrators. If you are convicted of a crime
such as theft, you will be punished with imprisonment or a fine. When the fine is paid, the
money generally goes to the state, not to the victim of the crime. The Civil Code defines the
special duties that a person (including corporations) owe to another person. For example, it is our
duty to honor our contractual promises. The tort law sets out a series of duties that individuals
owe to one another. One of the most common is the duty to exercise reasonable care in relation
to others. Failure to do so is tort due to negligence.
Business Law Assignment 01 Nilukshan Ravichandran LH-38820 22

2. Different Sources of law
There are four applicable legal sources in Sri Lanka and UK. The. Here, between countries,
some of the laws that apply across the UK and Sri Lanka are so much related, In addition to this,
in particular, only in one or two or more countries.
Fundamentals of Law are Four Main Rules. It is about Legislation, Common law, European
Union law, Legislation. Legislation is the law made by the legislator. The laws of parliament are
among the most important pieces of legislation. These laws are the main part. The main
legislative body is the Parliament of the relevant governments. Legislation is the only body that
has the power to pass and that is applicable in all four countries. The primary sources of law are,
Constitutions, Treaties, Statutes, Court decisions, Private law, Constitutions
2.1. Constitution
The constitution is the most important legal source in the country. Any other form of law must
be consistent with the constitution or it will be overturned by the courts. The Constitution of U is
the fundamental law of the nation. The Constitution was adopted and ratified at the Fifth 7 th
parliament of Sri Lanka on May 22, 1972. Laws and other normative laws of Sri Lanka must
comply with the Constitution. The right to amend the Constitution by special legislative
procedure rests exclusively with Parliament. The only body that can interpret the constitution
and determine whether legislation conforms to it is the Constitutional Court of Sri Lanka.
2.2. Treaties
The constitution states that treaties entered into by the president with foreign governments, and
ratified by no less than two-thirds of the members of Parliament, are "the supreme law of the
country." Therefore, they can bypass Acts of Parliament or state legislatures and other
inconsistent laws. However, conflicts of this kind rarely arise, since states cannot conclude
treaties with foreign states.
Business Law Assignment 01 Nilukshan Ravichandran LH-38820 23

2.3. Statutes
This is a Combination of English common law and Roman Dutch Civil Laws and Customary
Law. Within every federal or state legal system, the laws are next in the hierarchy. The law is the
product of the legislature's legislation. Bylaws can add details to the governmental framework
when creating a regulatory agency or an agency to provide a public service. Or laws may
establish rules that govern certain types of activities, such as the use of motor vehicles on the
roads. All criminal laws, the law applicable to the sale of goods, and almost all laws that limit or
regulate business activities are statutory.
Government units within states, such as cities and counties, also have the power to legislate. Its
legislation is called ordinances. Local laws regulating zoning and noise levels are examples of
ordinances. Court Decisions; Courts make laws in three ways those are interpretation, Common
Law and Judicial Review.
2.3.1. Interpretation:
They define the meaning of laws, administrative rules, executive orders, and even treaties and
constitutions. Interpretation courts enact law through the first process: interpretation. The courts
have the final say on what the legislature has said in law. Since many laws are written in very
broad and general language, "power of interpretation" is important. However, courts can decide
whether the law applies to a particular case. This is especially important when the issue relates to
a situation that the legislature did not anticipate when it passed the law. Through this
interpretation, the courts can expand or narrow the scope of the law. When interpreting statutes,
courts generally: Look to the plain meaning of the statute's language, Examine the legislative
history of the statute, Consider the purpose to be achieved by the statute, try to accommodate
public policy.
When a law is being interpreted by a government agency, the courts will generally accept that
interpretation if it appears reasonable. Consider the factors that influenced the court's
interpretation of city law at the opening of the chapter.
Business Law Assignment 01 Nilukshan Ravichandran LH-38820 24

2.3.2. Common Law
Common Law is "Looking for" or identifying law by resolving disputes where none of the other
sources of law appear to provide an applicable rule. The second way that courts make laws is to
“declare” the law. This "decision-making law" arises because courts generally must adequately
resolve any dispute that comes their way. If there is no statute or other type of law that provides
a rule that the court can use to resolve the dispute, it is not exempt from making the decision.
Instead, the court must declare the rule of law in this dispute. This law established by the court is
called common law. The term "common law" comes from English origins. The Normans invaded
England in 1066, and one of the main means used by William the Conqueror and his successors
to unite the country was to send royal magistrates to hold courts in the various cities. In this way,
the disparate customs and laws of each region were replaced by a unified or "common" system.
Common law evolved when judges resolved disputes brought before them. If the facts are similar
to a previous case, they tend to follow the previous decision. In this way the rule of the first (or
the doctrine of the squinted gaze) was developed. (Stare's decision is discussed in more detail
later in this chapter.
Another important source of law for decision-making is equity. The first English common law
courts could determine ownership of land and could award monetary damages when settling
disputes. However, when a person wanted some other remedy, such as ordering the accused not
to do something, the only way for that person was to petition the king through a lawyer. In the
end, a new court was formed, the embassy court was formed. Remedies other than those of the
common law courts were offered, in particular injunctions. A court order is a court order that
prevents one of the parties from doing an act or orders the parent to do something. Property
rights also differ from common law because its procedures are much less strict. He sought equity
between the parties rather than blind adherence to past precedents. Almost all states have
abolished a separate court, but fairness courts' remedies and approaches still apply to the types of
disputes those courts used to handle.
Business Law Assignment 01 Nilukshan Ravichandran LH-38820 25

Judicial review
Judicial review is reviewing the constitutionality of the work of the legislative and judicial branches. The third way that courts e
the laws passed by the legislature, as well as the actions of the executive branch.
Private law
The sources of law discussed above owe their existence to public institutions. However, individuals can also create a law throug
1.
Business Law Assignment 01 Nilukshan Ravichandran LH-3882026

3. Role of the government in law-making. – how statutory and common law is applied in
the justice courts
This section explores the role of the courts and the judiciary in Law making within Sri Lanka &
UK. The English legal system is often referred to as the "common law" legal system. Before the
Middle Ages, the law in what we now call Great Britain was largely territorial. Different
regional kingdoms have different laws. Over time, the same law was applied by magistrates and
thus became popular throughout the country. This was known as "common law".
Sri Lankan law is based on the English common law system. As a result, the principles of
English law such as jurisprudence (lower courts follow the reasoning of higher courts in similar
and subsequent cases) and the proportion of decisions (grounds for judgment) govern the
interpretation of jurisprudence. Civil cases are heard by district courts and criminal cases are
heard by magistrates and supreme courts. From the decisions of these courts of first instance, an
appeal can be made to the Court of Appeal and then to the Supreme Court.
The Parliament enacts the law in Sri Lanka. Laws are published in Acts of Parliament. The term
"ordinance" refers primarily to legislation passed during the British government, and "law" or
"law" refers to the most recent legislation. In most statutes, the parliament delegates regulatory
power to administrative (executive) agencies. The rules or regulations established by these
bodies are published in the Official Gazette.
Supreeme
Court
Courts of
Appeal
Magistrates High Court Distric Court Commercial
F I G CU o R u E
rt1 ( H
Cr I E
i m RA i n R aC
l H
) Y OF
C O (C U
r R
i mT S
i n O a F
l ) S R I LANKA
(Civil) High Court
Business Law Assignment 01 Nilukshan Ravichandran LH-38820 27

As per the Provisions of the 1978 Constitution , The legislative power of the people is exercised
by Parliament, which is composed of representatives elected by the people and by the people in a
referendum, Parliament has the power to pass laws, including those with retroactive effect and to
repeal or amend the Constitution, Parliament may not in any way renounce or exclude its
legislative power, and will not create any authority with legislative power subject to the
provisions of Also, Standing Order 133 A Bill or Proposal to authorize or charge a Consolidated
Fund or any other Fund of the Republic, or to impose, abolish, increase or reduce any tax, may
be introduced only by a Minister with the approval of the Cabinet Ministers. (Article 76 (Page
2,3,4))
As per the language of legislation, all minor statutes and legislation will be promulgated or
drafted and published in Sinhala and Tamil along with the English translation.
As per Constitutional jurisdiction of the Supreme Court, The Supreme Court of the Republic of
Sri Lanka will be the highest and last supreme court of the Republic and shall be subject to the
provisions of the Constitution. The Supreme Court will have sole and exclusive jurisdiction to
decide on any question as to whether a bill is inconsistent with the Constitution and also to
determine the constitutionality of any bill in accordance with Articles 82, 83 and 84. When a
petition is lodged with the High Court against a Bill under Article 120, no proceedings shall be
brought in Parliament in connection with the Bill until the decision of the High Court is
announced in Parliament.
The decision of the Supreme Court will make it clear whether the bill is inconsistent with the
Constitution and that it is obligated to comply with the provisions of Articles 82, 83 and 84.
Subject to Articles 120 and 121, no court or other institution has the power to investigate the
constitutionality of said Bill. The Supreme Court will have sole and exclusive jurisdiction to
hear and resolve any question relating to the interpretation of the Constitution.
Business Law Assignment 01 Nilukshan Ravichandran LH-38820 28

In Duties of the Attorney General in relation to bills there mentioned, The Attorney General
shall examine each bill to reveal any violation of the requirements of paragraphs (1) and (2) of
Article
82 and whether it must be approved by a special majority. In the event that a proposed
amendment to a bill is at the committee stage, the Attorney General will communicate his
opinion to the spokesperson. All jurisprudence cited here is taken from Sri Lanka Law Reports
(SLR). Before the SLR, there were New Legal Reports (NLR). Whenever there is a reference to
an NLR, remember that it is older than an SLR. The I ssues on this site are just a few of the
adjudicated human rights issues, known in Sri Lanka as Fundamental Rights. However, you will
be able to gain a reasonable understanding of human rights in Sri Lanka by reading these cases.
Some of the laws available on this site may have been changed. However, most modifications
are not available electronically. The only way to access the latest changes is to obtain a hard
copy from the Sri Lankan editorial office.
More details may be available from the sites listed on this site as helpful links. This website aims
to provide a basic understanding of Sri Lankan human rights laws. It is not recommended to rely
solely on this information for a comprehensive investigation of human rights in Sri Lanka.
Develop, this would be a good starting point.
This means that many of our fundamental legal principles have been set and developed by
judges from case to case in what is called a system of precedent, whereby lower courts have to
follow established principles. by higher courts in previous cases. The common law is as
important to us as the law made by Parliament.
Finally, this course will examine how the common law system works, the basic differences
between "civil" (continental) and "common law" systems, and the advantages and disadvantages
of a common law system that relies heavily on rules and rule-making. This aims to explore the
role of the judiciary in the law-making process by studying the historical origins of common law,
the system of precedents, and rules of legal interpretation.
Business Law Assignment 01 Nilukshan Ravichandran LH-38820 29

There are several ways to create and develop law. Historically, as you will see, the most
important influences have been local customs and magistrates. As Parliament increased in power
in the nineteenth century, laws became the main source of new laws. Court decisions remained
important because they filled in loopholes where statutory law did not exist and explained the
meaning of statutory law. This course will explore some of these court decisions.
The constitution of the law was partly written. Therefore, the Parliament of the Sri Lanka and
UK Governments creates several laws. In UK the process of enacting a law relies on two main
bodies: the House of Commons and 2 the House of Lords. The government is elected by the
people of the United Kingdom every five years and the elected candidates represent the House of
Commons. The government is trying to maintain law and order in the area (Burkan et al., 2015).
Therefore, it seeks to address the various problems and challenges facing the country. Problems
can arise from citizen campaigns, special interest groups, minorities, etc. To solve the problem,
the chosen government proposes a bill in Parliament. The debate is between the government and
the opposition parties. Once the bill has been passed in Parliament, it is sent to the House of
Lords.
The House of Lords is the supreme court. The court reconsiders the bill and, if necessary, may
suggest some changes to the bill. Once the assessment is completed, the bill is sent back to the
House of Commons to make the proposed changes.
As soon as the amendments are made, the bill is sent back to the king, that is, to the queen. In the
Constitution of the United Kingdom A brief of the law-making is explained, Most of a time, it has
been noticed that while making verdicts, the judicial body refers to either common laws or statutory
laws. The former are also called precedents and applied to new cases. These laws are recorded in the
yearbooks and are referred to make decisions in the new cases. On the other hand, statutory laws are
established by the parliament and are codified. These are applicable to every citizen (Cuniberti,
2013). These laws being superior to common laws can overrule them in case of any conflict between
the two.
Business Law Assignment 01 Nilukshan Ravichandran LH-38820 30

Making laws
Figure 2 - Law making process
As shown in the above figure Bills can start in the House of Lords or the House of Commons. Both Chambers established stages
(Royal Consent) and becomes an Act of Parliament (Law).
At First reading the bill reaches the House of Lords. This stage is a formality in which the name
of the invoice is read in the room. In Second reading: the main discussion about the purpose and main areas of the bill. At this po
In Committee Stage revision of the text line by line with modifications (proposed changes).
Members start at the beginning of the invoice and work until the end. A vote can be taken to determine if changes will be mad
At Report stage Another opportunity to review the law and make changes. More modifications
are discussed and more votes are taken to decide whether to make the changes.
Business Law Assignment 01 Nilukshan Ravichandran LH-3882031

In The third reading the "Tidying Up" stage to fill in the gaps. Last chance to edit and vote. Also,
in Consideration of Amendments, If the House of Lords makes changes to a bill, it is sent to the House of Commons for approva
Finally, at Royal Assent, when both Houses agree on the text, the King approves the bill and it
becomes a law or "Act of Parliament". The lists of amendments are proposed or presented by the members before the commissio
discussion so that they can be considered together.
Business Law Assignment 01 Nilukshan Ravichandran LH-3882032

4. Statutory and common law Similarities and Differences
This chapter begins with some reflections on what is Statutory and common law. It shares the
interpretation of the laws and what makes them different. So, author turn to More direct
relationships between statutory and common law, before closing with Some brief reflections on
how to consider forms of interpretation in this A handbook that resembles the legal interpretation
of private texts and their interpretation in other specialties.
Two criteria for decision-making and rule-making play a role in both common law and statutory
law. In its fundamental aspects, In its core respects, precedents similarly in both types of cases.
A precedent that It follows directly to the point, except for the feeling that it is a grave mistake,
and Weight is given to precedents in relevant matters. These similarities are not themselves solve
directly exactly what should be computed in an exemplary precedent or How much force should
it have precedent. Rules are developed within common law Over time, with caveats and
exceptions that lead to rework Rules. As the judicially formulated rules in legal cases are based
on it The authorized language of the legislature, the rule set by the court in the case is almost
Always of great importance. A later court interprets the same law The referee will find it more
difficult to draw a conclusion than would be true in common law The case that what mattered in
the previous case was really the result and not The rules that its predecessor claimed to comply
with the legal directive.
Judges rely to some extent on analogies in both statutory and common law cases. With
legislation, they typically begin with instances clearly covered or not by statutory language and
ask how close a borderline situation is whose coverage by the statute is contested. As Chapter 9
discussed, some important theorists contend that whatever help they provide in thinking about
issues, analogies fade from view in ultimate justifications, in which judges settle on formulated
standards and the reasons supporting them.
Business Law Assignment 01 Nilukshan Ravichandran LH-38820 33

That chapter defended the contrary view that sometimes analogies may exercise force in
justifications; judges may have more confidence in them than in rules they state and in abstract
reasons that support the rules, and occasionally judges properly rely upon example comparisons
without formulating any general rule. Given the centrality of rules in statutory cases, one can
hardly imagine an opinion that fails to formulate one, and decisions in statutory cases that come
down to a deeper, ultimate reliance on analogy will be much less frequent than with some
common law cases in which no preexisting rule serves as a definitive guide.
Later judges in common law cases may also refer to the intentions of the original court, but they
do so without a sense that they are obligated to carry out even misconceived intentions. Three
fundamental differences characterize how judges ascertain judicial “intentions,” as compared
with legislative ones. The inquiry about judicial intentions concerns what has actually been
resolved in terms of results, rules, and supporting reasons. Later judges do not consider the
(confidential) process of decision leading up to the earlier resolution. The writing of opinions
differs from the legislative process, because it allows judges to make a full statement of reasons
in an authoritative legal document.
One might begin with an overall view about that system and derive specific conclusions, or start
with answers to narrower questions, and build one’s overall perspective from those. No logical
compulsion favors one starting point over the other. What matters instead is whether, at the end
of the day, we have answers to the specific questions that are compatible with a broader
perspective we find persuasive. If our conclusions were seriously incompatible, we would need
to rethink how we regarded the overall system or how we answered the narrow questions, or
both.
An objective rule is the rule about our behavior, for example that we cannot commit murder or
that we will enter into a contract if we do this or that in an email exchange. These substantive
rules differ from the rules of procedure, because the latter simply govern how things work. For
example, regardless of the type of case in court, the rules governing the admission of evidence
in court are the same.
Business Law Assignment 01 Nilukshan Ravichandran LH-38820 34

On the other hand, the Basic Law refers to the law enacted by Parliament in the form of
legislation. Although there has been a marked increase in statutory legislation in the 20th and 21st centuries, the courts still hav
Business Law Assignment 01 Nilukshan Ravichandran LH-3882035

5. The potential implications of law in new businesses
Laws and regulations direct companies to guard against any fraudulent event. It can have both
positive and negative effects on Business. Laws oblige the manager and the organization to
follow certain pre-determined standards and implement them in their work facilities. The
Companies Act 2006 defines certain functions for the directors of an organization. Directors
must act in accordance with the constitution of the organization and use only those powers
assigned to them. They are responsible for promoting the success of the company for the benefit
of its workers.
Now comes the for-example study where limited company to raise funds from outside parties for
expansion. There are many challenges a company can face in doing so. First, it can lead to a
weakening of property rights and owners may lose their governing rights. Being open to the
public is not always helpful because the process is time consuming, expensive and adds a burden
of paperwork to the company. In addition, some additional responsibilities, such as formulating
effective human resource and corporate social responsibility policies, fall to the organization. In
addition, some of the obligations analyzed below also fall to the company.
Considering Health and Safety Regulations, In the UK, the Occupational Health and Safety Act
1974 sets out the instructions and responsibilities of employers. Once the public limited
company is announced, An Organization will conduct a risk assessment and provide basic
training to the employees. The company has a responsibility to provide the safest working
environment for the employee (Marmot, et.al, 2012).
In Equal Opportunity Regulation, the 2010 Equality Act obligates employers to treat all workers
equally. The main objective of this law is to ensure that discrimination does not occur in the
internal and external work environment on the basis of gender, age, color, race, income, etc. It
also forces the employer to adjust employees with physical disabilities to help them compete
with regular employees.
Business Law Assignment 01 Nilukshan Ravichandran LH-38820 36

In Data protection, The Data Protection Act 1998 ensures that no public or private company will
misuse personal information and data. An Organization operating in the UK is also subject to
this law.
The employment contract was included in the Employment Contracts Act 1963, which was an
act of the UK Parliament and is widely regarded as the Forts Employment Protection Act
because it introduced the requirement that employers give notice reasonable to your employees.
Dismissal from work. It also gives workers the right to the previous average wage during the
warning period.
An employment contract is one of the categories of contracts used in labor laws that define the
rights and responsibilities between the different parties to a transaction. The parties, on the one
hand, are the "employee" who is often "employed" by the employer and, in the words of Sir Otto
Kahn-Freund, such employment contracts generally refer to the relationship that represents
economic and social dependency. between the parties involved in the process. derivation.
Therefore, an employment contract can be defined as a legally binding agreement between an
employer and an employee that defines the labor rights, duties and responsibilities of each party,
and the terms of the contract commonly called (Freedland, 2001).
Contract and employment, An employment contract begins as soon as the employee begins
working for the employer and is required by law and can serve as oral communication and does
not necessarily have to be in writing. Work contact law may include rules that may be implied,
for example the employer's right to provide a safe and healthy work environment. The law also
includes other automatic rules, such as the right to be paid while on vacation, as well as the right
not to be subjected to unlawful discrimination in the workplace. Each employee is entitled to a
written statement of the main working conditions within two months after starting work (Moye,
2004). An employment contract is concluded as soon as the job offer is accepted and does not
have to be in writing.
Business Law Assignment 01 Nilukshan Ravichandran LH-38820 37

When you start working, it means that you have accepted the job on the terms offered by the
employer, even if you don't know what it is about. Having a written contract between the two
parties helps to end disputes with each other at a later time in the event of a breach of the
contract by either party. A breach of contract can be of a verbally agreed nature, a written
condition, or even an implicit condition in the contract. In the event that the employer breaches
an employee's contract, the employee must be able to check the terms of service carefully to
ensure that the breach of that employment contract is truly defensible and must use other dispute
resolution methods before opting. for legal action. Another option includes possible mediation
through bodies such as Consultancy, Conciliation and Arbitration. If the employee cannot
resolve the dispute with the employer, he has the right to take legal action against the other party
before special consideration in terms of the final profit, as well as the cost involved in the case.
Employers only receive compensation if the employee can demonstrate an actual financial loss
as a result of the employer's violation of the employment contract. Additionally, employers also
have the right to file a counterclaim to help the employee if they feel they have one. Legal action
taken by the employee can be through the labor court or the civil court. This procedure has
limitations, for example, some claims, such as personal injury, cannot be presented in labor
court.In the event that the employer has breached the employee's contract, it is recommended to
try to resolve the problem with the employee informally, and especially if you have suffered an
economic loss, you should be able to make a complaint about the harm caused to the employee.
aggrieved employee. The employer has the right to file a claim with the labor court in response
to a claim for breach of contract initially filed by the employee.
Employers often use the services of the district court to resolve disputes arising from a breach of
employment and communication between their employees and the organization. The employer
may receive compensation for monetary damages, for example, if the employee does not give
sufficient advance notice, the employer may claim the additional costs incurred in hiring
additional employees to take over the work of that employee or even for the loss of income.
Although the employee is still owed the salary he received before he left, in addition to the legal
vacation pay that he took.
Business Law Assignment 01 Nilukshan Ravichandran LH-38820 38

Launching a new business can be an exciting experience and hopefully lead to long-term
success. In addition to having a good idea, a strategic plan, and an intent to implement it,
entrepreneurs must also consider a wide range of legal issues, from forming the appropriate
entity to protecting the business from personal injury lawsuits. By being prepared for these and
other legal concerns, you can avoid the mistakes that many startups undermine.
1. Business Structure / Licensing
There are a number of factors that go into choosing the right business structure, such as the type
of business, costs associated with forming a particular entity, as well as tax implications. The
most common legal structures include sole proprietorship, partnership, C corporation, and S
corporation. Various licenses or permits may also be required. At a minimum, you will need to
obtain a business license from a state or local agency, as well as a tax record.
2. Written agreements
It is necessary to draft written agreements that clarify the rights and obligations of the parties
involved in the management of the company. Typical agreements include partnership
agreements, shareholder agreements, and employment agreements, all of which must include
noncompetitive provisions to prevent the potential transfer of confidential business information
to competitors in the event that an important owner, executive, or employee retires.
If the small business is a partnership, it is also necessary to create a purchase and sale agreement
to provide for the orderly distribution of the interests of the outgoing owner and to ensure
business continuity. Finally, companies that hire suppliers must protect their trade secrets
through confidentiality and non-disclosure agreements.
Business Law Assignment 01 Nilukshan Ravichandran LH-38820 39

3. Intellectual property protection
Startups that bring innovative products and new concepts to market must protect intellectual
property, such as patents, trademarks, and copyrights. Patents and trademarks registered with the
Sri Lankan Patent and Trademark Office provide the power of exclusivity that can differentiate
you from your competition and maximize profits.
Copyright gives the company the exclusive right to use original works such as books, photos,
music recordings and even computer software and software. These works are generally protected
once created, but registering them with the SL & UK Copyright Office provides a powerful legal
resource for filing a lawsuit in federal court for infringement. The value of intellectual property
cannot be underestimated and it is necessary to protect these assets to avoid infringement or
infringement of the rights of other entities.
4. Labor Law
The employer must be aware of a number of federal, state, and local employment laws. Planning
Research and development division ministry of employment and labor Sri Lanka, 2002. makes it
illegal to discriminate against employees and job applicants on the basis of race, color, national
origin, religion, and gender. In addition, people with disabilities are protected from
discrimination and harassment under the Americans with Disabilities Act. Other important laws
include the Equal Pay Act, Family Medical Leave Act, Pregnancy Discrimination Act, and
workers compensation laws.
Small business owners must also comply with wage and hour laws, beginning with the Federal
Fair Labor Standards Act. This law requires workers to have a minimum wage of $7.25 an hour,
plus overtime work and a half-hour rate for hours worked in excess of 40 hours per week. Of
course, many states and cities require employees to have a higher minimum wage.
Business Law Assignment 01 Nilukshan Ravichandran LH-38820 40

5. Real estate liability claims
Business owners with a physical location are often the subject of liability suits brought by customers, vendors, and other visitors
premises.
Business Law Assignment 01 Nilukshan Ravichandran LH-3882041

6.Impact that law can make to the business between legislation, regulations and standards
There is no doubt that regulations, legislation and standards are important from the point of
view of both the employer and the employee. They help the organization to deal with
uncertainty and market volatility. They reduce legal implications that arise during the operation
of business functions. Standards help improve process management and improve overall well-
being. They also ensure the protection of health, safety and the environment. On the other hand,
regulations define the characteristics of products and processes that organizations must comply
with. The main difference between the two is compliance. Compliance with standards can be
voluntary, but this is not the case with regulation. Regulations can affect trade, while non-
compliance with rules can affect a company's market share. When talking about the impact of
legislation on the organization, imposing a large amount of legislation on the organization can
result in less efficiency. This can also restrict companies from operating to their fullest
potential.
Comparing the effects of rules, legislation and standards is irrelevant and ambiguous. This is
because its consequences are usually determined by market scenarios.
Legislation: Government laws that incorporate aspects of business continuity management on
behalf of or of a sufficiently similar nature (disaster recovery, emergency response, crisis
management) to be treated as business continuity management legislation for this purpose. To
be included in this category, legislation must be legally enforceable and approved by a national,
federal, state or provincial government, depending on the legal structure of each particular
country.
Regulations: Mandatory rules or guiding documents audited by official regulators in sectors
such as financial services, telecommunications, energy, oil and gas, and chemicals. Those that
can reasonably be interpreted as affecting the organization's business continuity management
arrangements are included. General assistance and guidance documents are included in good
practices.
Business Law Assignment 01 Nilukshan Ravichandran LH-38820 42

Standards: The formal standards of national (and international) accredited standards bodies
that relate to business continuity as a whole or to a specific and relevant subset, such as IT service continuity. The list also inclu
national accreditation service.
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SECTION B - Presentation
Introduction to different types and classification of business organizations
FIGURE 3 PRESENTATION SLIDE 1
Figure 4 presentation slide 2
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Public Sector
The public sector consists of organizations that are controlled by the government and available to
Figure 5 presentation slide 3
provide services to the public. Similar to the voluntary sector, organizations in the public sector do not seek to generate a profit.
Gopal,2009)
The government-owned and funded company is a public sector business organization. State
departments, state corporations, state-owned enterprises, companies registered and available under the services of regional counc
separate legal identity.
Business Law Assignment 01 Nilukshan Ravichandran LH-3882045

State Corporation
Business Wholly or partly government-owned, they are known as a state corporation. A state corporation company appointed by
Departments
State departments are an institution that will be fully managed by the government as part of the ministries. Departments to take a
Funding and Management in Public Sector
Funding for public services is usually collected through a variety of methods, including taxes, fees, and money transfers from ot
Business Law Assignment 01 Nilukshan Ravichandran LH-3882046

Private Sector
Sole Traders
FIGURE 6 PRESENTATION SLIDE 4
Sole dealer is the most common form of Organization s and business that can be effectively approached by any bank to provide
Organizational performance and activities with the objectives of the Organization.
A Sole Proprietorship is a business that one person manages as his or her personal property. The
business is just an extension of the individual owner. Agents and employees can be appointed, but the owner bears full responsib
can run a computer services business as a sole proprietor. It would be like buying a house as an
Business Law Assignment 01 Nilukshan Ravichandran LH-3882047

investment and renting it out. The person running the business does not need to use his or her
name as a business name; It may be operated under an assumed or commercial name, such as Data Experts Corporation. Howeve
deduction when determining taxable income.
Characteristics of the sole proprietorship. Risks All risks are assumed by the owner himself.
Unlimited liability: - The sole trader is personally liable for the debts of the business. Legal status: Only merchant and his b
Characteristics of the sole proprietorship. Customer relationship: - The sole proprietorship tries
to maintain a good relationship with its clients. in Without legal formalities, A sole trader can establish or close a legitimate busi
Sole proprietorship characteristics. Sole proprietorship is the easiest business structure to create.
It can be created in minutes at no cost. This business has the option of starting at the lowest cost and can be started from home.
Business Law Assignment 01 Nilukshan Ravichandran LH-3882048

Funding and management in Sole Traders
The ability of an individual trader is relatively limited compared to a public or private company.
The sole proprietor has multiple options to extend his finances and avoid diluting the ownership
while still meeting his financial needs. A sole trader can use his or her personal capital, retained
earnings, asset sales, sale and leaseback, bank loans or lines of credit, and installment purchases.
However, the individual trader must understand that a growing business will eventually have to
agree to dilution of ownership, as these strategies are merely delay tactics.
personal capital
An individual trader can invest his savings in his business to expand it. An individual trader who
is confident in the future prospects of his business may be willing to invest additional savings in
the business for expansion. This saves you the burden of interest payments and allows you to
maintain complete control of the business.
retained earnings
A profitable business generates a positive net profit each year. Instead of withdrawing large
amounts of money, an individual trader may choose to keep the profits to expand his business.
selling assets
When an individual trader has little personal capital and retained earnings and there is a need to
invest more in the business, he may decide to sell some of his assets. This may be property
registered in the company's name. A sole trader can rent an office and use the proceeds from the
sale to expand his business.
Sale and leaseback
If the sole trader does not have any other assets to sell, he may decide to sell an asset or property
and lease it to the buyer. This helps you maintain the same business direction and continue your
business as normal while raising capital for expansion.
Bank loans and lines of credit
Business Law Assignment 01 Nilukshan Ravichandran LH-38820 49

An individual trader can go to a bank or financial institution to apply for a loan. This can include
a business loan, line of credit, credit cards, business credit, and a mortgage. Individual merchants prefer business credit and cred
Hire purchase
This individual trader can acquire a particular asset through installment purchase by paying a portion of the value as an advance
or similar assets.
Business Law Assignment 01 Nilukshan Ravichandran LH-3882050

Partnership
FIGURE 7 PRESENTATION SLIDE 5
the company. Unless otherwise agreed, the partner will not be considered an employee and will not be entitled to a salary for ser
company without being personally liable for their debts.
Sole traders and partnerships refer to the simplest form of business organization. A sole trader is
an individual who operates a business on their behalf, provides all the capital, and assumes all the risks. An association can have
pockets.
Business Law Assignment 01 Nilukshan Ravichandran LH-3882051

Funding and management in Partnership compare to sole trader
Sole traders and partnerships have a variety of financing options: personal savings, retained
earnings, working capital, asset sales and bank loans.
personal savings
Simply put, personal savings is the amount of money a person has at his or her disposal. It
becomes a source of finance when the individual merchant or a member of the community is
willing to invest it in his business. It is up to the person to decide whether they want to keep their
savings or use them to purchase equipment, vehicles, tools or other things that their business
needs.
retained earnings
There is a business to make a profit. Business owners can withdraw these benefits or reinvest
them to expand the business. If the sole trader or the members of the partnership decide to retain
the profits of the company, then this source of financing is called retained profit.
Working Capital
Working capital is short-term financing or business capital. It is calculated by subtracting current
liabilities - the amount owed to the company - from current assets - the amount of money the
company owns or owns. Using working capital to meet short-term financing needs is equivalent
to another source of financing.
selling assets
If a sole trader or company needs money, it can dispose of some of its assets, selling machinery,
land, buildings, tools and other assets that are not vital to the existence of the business. However,
assets are generally necessary for business expansion, so selling them can only be a temporary
source of financing.
Business Law Assignment 01 Nilukshan Ravichandran LH-38820 52

bank loans
Obtaining a loan from a bank is equivalent to another source of financing available to individual merchants and partners. Howev
Business Law Assignment 01 Nilukshan Ravichandran LH-3882053

Company
Companies are registered under the Companies Act which are followed by effective rules and regulations and which begin to ap
public, through which the company's shareholders are the owner of the company. (Clark, 2014).
The authority and responsibilities were transferred from top to bottom and decisions were made
to the company's management. The size of the company can vary according to the performance of the company's operations. The
1.2.2.
Business Law Assignment 01 Nilukshan Ravichandran LH-3882054

1.2.3. Private Limited Company
FIGURE 8 PRESENTATION SLIDE 6
The main ownership restrictions are as follows: Shareholders cannot sell or dispose of their
shares without prior to the sale to the other shareholders and Shareholders are not able to offer
their shares to the public at the stock exchange, and the number of shareholders must not exceed the specified indicator (usually
Business Law Assignment 01 Nilukshan Ravichandran LH-3882055

Funding and Management in Private Limited Companies
Friends and family
In the initial stages of a private company, private personal resources are used for business
operations. Taking out of savings, taking a distribution from a retirement account, or obtaining a
second mortgage on the residence is common among new business owners. Personal finance
owners can find financing opportunities among friends and family. In most cases, private
funding comes from family or close friends in small increments in many normal cases. Also,
friends and family who invest in this company have spent their turnover on operations.
Bank loans
Conventional loans through a financial institution, such as a bank or monetary union, to a private
company that can provide evidence of a solid financial history. The funds can be allocated to all
private companies. For example, a startup that qualifies for financing from a bank and a startup,
not a startup. Availability of financial accounts for banking companies; Allow repayments to be
made over time with predictable fixed monthly payments.
Angelic Investors
An angel investor is usually a wealthy person who lends in exchange for an ownership interest in
the company. Due to the capital position within the company, angel investors are more likely to
make a lot of money and find work in capital to invest. Most angel investors are private equity
investors, which means that companies seeking financing must match their financing need with
current financial statements, data plan, and affiliate data strategy.
equity owners
Venture capital is like an angel investor. The highest scores or the highest money spreads in the
capital. Angel investors, venture capitalists invest in investment firms with a proven track record
of income and significant growth over time, the brand is also actively involved in business
operations. future employment opportunities
Business Law Assignment 01 Nilukshan Ravichandran LH-38820 56

crowdsourcing
Too much space for special projects that need a cash injection. The key is the ability to communicate a disconnected, concise, an
Business Law Assignment 01 Nilukshan Ravichandran LH-3882057

1.2.4. Public Limited Company
FIGURE 9 PRESENTATION SLIDE 7
PLC shares are offered to the public and can be acquired either privately, during the initial public offer or through transactions c
other owns the shares of the nearby company.
The shares may or may not be traded on the stock exchange. Finance can also be raised through
loans and retained profits. Note that directors may be asked to give personal guarantees of loans to the company. A board of dire
working capital.
Business Law Assignment 01 Nilukshan Ravichandran LH-3882058

The company is treated as a separate and distinct entity from its owners. With inclusion, it is
easier to maintain ownership for long periods of time, since the existence of the business in general is not threatened by the death
public companies and closed companies.
Business Law Assignment 01 Nilukshan Ravichandran LH-3882059

References
Gopal,N.(2009) Business Law 2nd Edition. New Delhi:Tata McGraw-Hill Publishing Company
Limited
Richard Welford and Richard Starkey.(2006) Business and Environment.Hydrabad:Universities
press (India) Limited
S. Tamer Cavusgil, Gary A. Knight and John R. Riesenberger.(2012) Business & Economics
Prentice Hall:Pearson,
Robert W. Hillman and Mark J. Loewenstein.(2015) Research Handbook on Partnership,LLCs and Alternative Forms of Busine
Educational Publishers
Geoffrey K. Ingham.(1970) Size of industrial Organization and worker behavior,Cambridge:The
University Press.
Ananda Das Gupta.(2013)Business Ethics,Banglore:Springer
A.B.Singh.(2004)Public Sector Performs in India.New Delhi:A.P.H.Publication Corporation
Business Law Assignment 01 Nilukshan Ravichandran LH-3882060

.
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