Key Sources of Laws for Business Organizations in the UK

This report describes the legal context for business organizations in the UK and the key sources of laws that govern them. It covers types of business, director roles and duties, partnership structures, and recommendations for IOM Solutions. The report suggests that Sam should opt for a Limited Liability Institution for the growth of his enterprise, which can help him manage his personal and professional life with comfort while also getting large investments and reducing his liabilities.

BSc (Hons) Business Management
BMP4002 Business Law
Assessment 2
Report describing the key sources of
laws as the legal context for business
organisations in the UK
Submitted by:
Name:
ID:
Contents
1Memorandum of Association

Introduction
A enterprise is a kind of institution or company which is set up by proprietor with the
goal of gaining revenues and income by making and sales of goods and services to
to a large number of people. Proprietor of the enterprise wants their business
organization to become acknowledged within there competitions in market so that
enterprise surrounding can work correct. Marketplace is the domain where new
enterprise or organization emerge each and every day and their enlargement leads
to growth of the business. This aid the economic system by assist the transaction of
commerce and money in the marketplace among the masses. Rising entrepreneurs
witness start-up business as an possibility to make wealth so that they can modifie
their standard of living for a improved future. Business law is also called as
commercial law this is a body that deals by solving commercial matters between
people(Aspan,Auliawan, Prabowo,2022). This report include information about the
business law and also about types of business. Also a recommendation about how
Sam can expand there business.
Businesses & Organizations in the UK
Management is in general defined as the activity of planning, organizing, that helps
in taking control of all the activities of the worker that are in the collection so that they
can achieve organizational objectives. The nature of the company is involves the
process of organizing people in group this process requires different level of
empathy and also help in understanding the environment that helps in taking care of
emotional well being of the workers this helps developing motivation and retaining
employees(Samuelson,Abril,2021).
Business law consist of many different area that area that are taught in the law
school There 8 main type of business law which are
 employment law
 intellectual property law
 contract law negotiation
 Formation law
 lawsuits
2Memorandum of Association

A business transaction is a economics that allow the third party which is
been recorded in an organization's accounting system these type of transactions
should always be measured in money business transaction in electronic commerce
is a monetary transaction that is made between the consumer or business with the
help of internet. Some example of business transaction are capital stock exchange,
share acquisition, exchangeable share(CliffordZarafopoulos,2019).
Vicarious liabilities this is a situation where one individual or group is held
partly for the unlawful action of the 3rd party. Whereas the 3rd party also carriers
there own portion of liability. Also we can say that Vicarious liabilities is when one
person is hold responsible for actions of other person. Some of the example of is
when a super mart employee leaked the data of 100 employees that work there
including there insurance, number, salaries, then high court said that super mart is
Vicarious liabilities for the data breach of there employees and they had to pay
compensation to there employees and also the employee was sentence 8 year of
prison.
Director are the major part of an organization so of there works are :-
Roles :-
 To work for the best interest of the company.
 To not make secret assets.
 To keep check that company action adhere current legislation.
 To keep company records be secure and maintained well.
 To plan for the management and improvement of the business
Duties :-
 Duty is not to misapply company assets.
 Duty is not to make any secret profit's.
 Duty to attend meeting.
 Duty to not permit conflicts of interest.
Liability :-
3Memorandum of Association

 liabilities to the company
 liabilities to the third party.
 Liabilities Towards statutory compliance.
 Liabilities Towards company law.
Termination of partnership partnership act was created in the year 1890.
This is a procedure by which the relation between partners is ended which reach to
ends of all the assets portion accounts and liabilities are disposed of and
settled(Ershova,and et.al 2019)). Steps to dissolve partnership are :-
 review your partnership agreements
 discussing the decision to dissolve with your partner
 filing a dissolution form
 notifying others
 settle and close out all accounts
Memorandum of association this is a lawful written document that specify
the reach of enterprise activities so that the institution and information about the
shareholding of the institution MOA is a written document prepared for the company
enrollment procedure.
Article of association this is a written document that specify regulation for a
institution operation and define the company's purpose these helps in lay out how
the task should be achieved with in company this also have the process of
appointing the director and director and handling of financial records(.Fenwick,
Wrbka,2018)
The legal business structure of UK companies
sole traders is Also know as single ownership in the business composition of IOM
solution the business that is owned by the sam he is been running that company for
8 Years and in the new 2 years business has been grow and the sole trader offers a
good business earning that only comes in the hand of Sam. As he the single
mangers and all the responsibilities of the risk and liabilities that occur company.
Now Sam wants to enlarge his business so He is looking for a commercial
4Memorandum of Association

enterprise structure that can be perfect for his business and can help him in earning
a lot of money. This well also help him in getting free from the responsibilities of the
company that he have and also now he will not be the only person who is going to
Sole Trader
It is a self employ type of business enterprise or organization composition which is
carry off by a sole person in his ability. This composition offers the benefit with
regard to its beginning which is expenditure friendly. Thus, it is easier to open,
operate and run. It is a really popular form of business enterprise type among the
young and rising entrepreneurs who develop and establish their enterprise or
organization on a small scale. They do so due to the accessibility of low capital and
funds with them. It is generally preferred by a individual person who wants to act as
a proprietor by opening their own organization in the form of small start ups. The
single person is the earner of all the profits and revenues generated in the
enterprise. The judgment are taken independently without any difficulty of judgments.
The possession control provided with this type pull the new organization people. But
it has demerits with regard to the debts, liabilities and losses which the individual
person has to bear while managing their enterprise. But it has private administration
with respect to privacy. But getting personal and family time out of the business
organization is often hard(.Halbert, Ingulli, 2020) . Income and corporation tax has to
be paid by the owner and they should maintain data of their customers with respect
to the General Data Protection Regulations.
5Memorandum of Association

General Partnership
This kind of partnership relate 2 or more than 2 individualist who get caught up as
generic partners with partnership agreement. These partners they do there business
by sharing all the roles and duty involved in the enterprise or organization. They
have to share the profits and losses on a punctual basis with equivalent proportion
while managing the organization. The partnership contract states that the partners
will share costs of creation, the financial risks and debts and also the net income that
are incurred in the organization. Due to the agreement they get jointly concerned
towards the trading operations of the business and have to maintain combined
liabilities with respect to administration of risks and responsibility of all there act
taken by them. Thus they get caught up with unlimited individual liabilities. But this
structure is more reliable than a single trader due to easygoing investments in the
business. Also due to various skills and experience of the partners they have
innovative decision making which helps to improve the productivity of the
enterprise(Mayer,2018). But the partners face difficulty when they are punished for
the wrongful act of the other partner she to combined liability This is governed by
the partnership act which defines the arrangement and dissolution of the enterprise
in case any of the partner suffers death or bankruptcy.
Partnership
His partnership gives a little no. of liabilities comparison to a generic partnership. It
is assorted with regard to the initiation of obligations where there is limit on the
quantity of wealth that can be played out by the partners on the enterprise or
organization. Business enterprise is organized by 2 or more partner who are in
personally liable for all the act taken in the enterprise concern. But they do not have
corporate or joint liabilities. But for this partnership a enrolled office is necessary,
which should be in accord to the authorities regulations. The limited Partnership Act
1907 governs an LLP by also protecting the curiosity of the partners. It has a
initiation of written agreement which helps in impressive running of the enterprise
(WorldBank2020).
6Memorandum of Association

Limited Liability
it is also point as a private limited institution whose direction is governed by the
Companies act 2006 which give details of the limited liabilities. It lays low provisions
deciding how an institution is established and function, what is needed to form a
private enterprise and how it can be dissolved. It also make legal obligations with
regard to the rights and duties of the heads and members of the institution who must
abide by the constitution of the institution. Manager is usually the head of the
organization who runs the administration of the institution. The institution is run by
the shareholder. It has a distinct corporate identity. Businessman in this enjoy
negligible individual liabilities(Mba, 2019).
Recommendations for IOM Solutions
when a enterprise grow and develop It require a punctual observation so that it can
take benefits of the flourishing opportunity in the market. This assist the enterprise to
adapt with quick changing condition. So sam should select limited liability as the
method for enlargement of his enterprise IOM solution. This type of lawful structure
offers a ton of profit and these also helps in sharing the duty with the management
with different various individual this Also help in retaining a higher profit this also
offers efficiency in tax planing and more and more investor are attracted towards this
types of structure as it offers them a reliable nature , this also help them in assets
formation. This also offers to them negligible individual liabilities which can really
profitable for sam(Miller,2021).
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Conclusion
The above report conclude that correct management of the enterprise is necessary
so that it purpose is done effectively. Enterprise law governs the operations and
conduct of a business. Enterprise run with the aim of gain revenues and profits in the
longer run. They alter in their type and size and the proprietor select their type
according to their will. sam is suggested to opt for Limited Liability Institution for the
increase of his enterprise(Wevers,2021). It can aid him in carry off his personal and
professional life with comfort while also getting large investments which will assist
him in making profits. This can also give him brand reorganization and he can also
be free from any kind of liabilities that he was facing as the sole owes of the
business and now he can mostly concentrate on the growth of the company and not
just. This can be beneficial fore Sam he can now take control of the market and also
fight the competitor of the market. He can not just be beneficial for him it can also
help him to give employments to other people as well that can help him in crease his
brand and they can also help in reducing alll the responsibilities and burden that he
carries.
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REFERENCES
Books and Journals
Aspan, H., Auliawan, A. and Prabowo, A., 2022. The Role of a Notary Process of
Making the Acquisition or Share Acquisition in the Order to Realize the
Practice Healthy Business Competition. Budapest International Research
and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 5(2).
Beatty, J.F., Samuelson, S.S. and Abril, P., 2021. Business law and the legal
environment. Cengage Learning.
Clifford, M.C. and Zarafopoulos, D.S., 2019. An Entrepreneurial Case Study: A
Bridge from Pedagogy to Practice in Business Education. Proceedings of the
Northeast Business & Economics Association.
Ershova, and et.al 2019. The phenomenon of digitization in legal business education.
In Ubiquitous Computing and the Internet of Things: Prerequisites for the
Development of ICT (pp. 145-152). Springer, Cham.
Fenwick, M. and Wrbka, S., 2018. International business law: emerging fields of
regulation. Bloomsbury Publishing.
Halbert, T. and Ingulli, E., 2020. Law and ethics in the business environment.
Cengage Learning.
Mayer, C., 2018. Prosperity: Better business makes the greater good. Oxford
University Press.
Mba, S.U., 2019. New financing for distressed businesses in the context of business
restructuring law. Cham, Switzerland: Springer.
Miller, R.L., 2021. Business Law Today, the Essentials: Text and Summarized
Cases. Cengage learning.
Wevers, H., 2021. A Basic Guide to International Business Law. Routledge.
World Bank, 2020. Women, business and the law 2020. The World Bank.
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