Key Sources of Laws for Business Organizations in the UK

This report by Desklib discusses the key sources of laws for business organizations in the UK, including the legal business structure of UK companies, sole trader and partnership businesses, and recommendations for IOM Solutions. The report also covers the different laws that commercial entities use, such as contract, company, employment, and tort law, to ensure that business operations are done in accordance with established standards and regulations. The report concludes with a discussion on the importance of business laws in enabling businesses to function efficiently.

Business Management
BMP4002 Business Law
Assessment 2
Report describing the key sources of
laws as the legal context for business
organizations in the UK
Contents
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Table of Contents
MAIN BODY.............................................................................................................................4
Businesses & Organizations in the UK................................................................................4
The legal business structure of UK companies..................................................................6
Sole Trader....................................................................................................................7
Partnership....................................................................................................................8
General Partnership....................................................................................................8
Limited Liability............................................................................................................8
Recommendations for IOM Solutions...................................................................................9
Conclusion................................................................................................................................9
REFERENCES.............................................................................................................................10
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Introduction
Business law is founded on those viewpoints that contribute to the formation
of businesses in accordance with local legal requirements. These laws deal with the
creation of structures that are used to perform business activity. These rules aid in
the development of commercial organizations by establishing a strategy for
achieving goals and objectives. The law encompasses several types of legislation
aimed at making corporate operations more efficient. The law is applied to numerous
corporate tasks and processes in order to create an impact. Business laws are also
utilized to build business organizations that ensure that business is done in a lawful
and efficient manner. The study is about corporate organizations and the concepts
that go along with them. Furthermore, the legal form of business organizations in the
United Kingdom has been outlined, including sole trader and partnership businesses.
In the end, IOM solutions are used to deliver the solution.
MAIN BODY
Businesses & Organizations in the UK
Business organizations help in dealing with a variety of commercial and
corporate tasks, allowing businesses and their functions to be covered more
effectively. Organizations take the lead in growing capability over business
organizations, which aids in more successful company operations. These
organizations take the lead in establishing standards that help business
organizations form by establishing business-related norms and rules. The institution
works with trade and money transactions by enforcing laws and regulations in its
various processes. These organizations have aided the United Kingdom in
establishing corporate goals based on legal considerations (Fairchild, and et. al.,
2018). Also, separate laws were employed by corporate organizations to ensure that
their processes were legitimate. Contract, company, employment, and tort law are
the three basic laws that commercial entities use. These laws ensure that business
operations are done in accordance with established standards and regulations,
assisting in the formation of policies inside an organization. Company laws are
founded on the viewpoints that enable a corporate organization to develop a solid
structure and function properly. The Companies Act of 2006, which is permanent
legislation, has established solid legislation. This legislation established principles
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and procedures to ensure that work is carried out in accordance with UK legal
requirements. In addition, this regulation proposes that in order to form a commercial
organization, a memorandum of association and articles of association must be
drafted. Furthermore, the legislation has mandated that directors be appointed to
manage corporate affairs in accordance with the act's rights and responsibilities. The
act significantly simplified the procedure of forming a corporate organization,
allowing for more efficient commercial operations. Another law that commercial
organizations use is contract law, which is based on legally binding agreements
between two or more groups get together to form an agreement. According to
contract law, an agreement should be created between two or more people.
Contracts are also legal in both written and unwritten forms, making them express
and implied in nature. These laws make it possible for an agreement to be valid as a
contract by ensuring that legality is met according to the law (Kubacki, Szablewska
and Kennedy, 2019). Various aspects are utilized by law to establish contracts,
including offer, acceptance, obligation, legality, and validity. The element is
significant because without it, a contract cannot be created. The first element is an
offer based on an idea made by another party with the goal of forming a contract.
Then there's the second contract, which is founded on the ideals that one side has
provided to the other. Its ideology is based on a contract that is shared between
partners. The third element is a duty connected to laws and regulations that was
developed after a contract discussion. Both parties have a shared point of
discussion, which forms an obligation or set of rules that governs the contract. The
fourth factor is legality, which ensures that a contract is made in a legal manner. The
fifth factor, validity, has been discussed in this part of contracting, and it is utilized to
provide a legal basis for contracts because contracts cannot be made over illegal
activities that are prohibited by the government. Business organizations use
employment regulations to ensure employee happiness and to protect employees'
rights. Various laws have been enacted as a result of these laws, allowing for the
effective resolution of employee-related concerns. The tort law is a civil law that is
based on many characteristics of corporate organization, such as nuisance,
carelessness, and tress pass, and it aids in the identification of vicarious liability.
These are the liability theories based on the idea that "the master is responsible for
the actions of its servant." This idea is used to develop employee and employer
liability for actions taken by employees. All of the laws are employed more
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successfully by UK business organisations, ensuring that legality of business is built
in accordance with legal standards established by the government, resulting in more
effective business policies.
The legal business structure of UK companies
Various areas of business organization's legal structure have been covered,
allowing businesses to conduct various legal operations more effectively. There are
two sorts of business organizations in the United Kingdom under this legal structure:
incorporated and unincorporated. In unincorporated business entities, a less
sophisticated approach is adopted, which allows business to run smoothly. It allows
an organization to have less government participation, which aids in maintaining
stability over corporate operations in the United Kingdom. The company has been
classified as an unincorporated firm that is run by a lone proprietor or a partnership.
These organizations play a crucial role in ensuring that business development is
carried out in accordance with the nature of the business. The business expansion is
covered by the organization's unincorporated status. There are two types of
businesses addressed in this article: sole proprietorship and partnership. These
organizations are crucial because they enable businesses to evolve in accordance
with their nature. The organization assists in the establishment of new businesses as
well as the expansion of existing businesses at a cheap cost. The organization has
been built in accordance with the nature of business, allowing it to shine in a more
effective manner (Phillips and Moutinho, 2018). The formation of an incorporated
company organization is a complex process that takes place at the local level.
Private and public organizations are the two types of organizations that have been
discussed. These organizations have Private Ltd at the end of their names, and their
shares are not available for public purchase. To complete the registration procedure
for these organizations, all necessary documents are gathered and sent to
Companies House, allowing the registration process to be completed more quickly.
The organizations are led by directors, who are responsible for ensuring that
business activities are carried out efficiently. Loans and debentures are used to
secure funding. The name of these organizations is Public Limited, and its shares
are likewise sold in the open market. Organizations have a variety of owners, and all
areas of management are focused on increasing efficiency. The company has
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multiple proprietors, each of whom makes and manages the company. Various
documents, such as the digital structure of the owner, the memorandum of
association, and other key documents, must be collected and submitted to
Companies House for further registration. There are more than two directors and two
company secretaries in a public limited company. Two corporate secretariats are
present in the organization with more than two directors. The organization's primary
goal is to benefit society, which helps to tackle social concerns more efficiently. The
organization's primary goal is to improve society's well-being by resolving social
challenges more effectively. Owners and business stakeholders are in charge of
managing funds. Government institutions, health initiatives, community services,
restoration programmes, public service programmes, and even environmental
activities are all used to raise funds. These are the organizations that are part of the
United Kingdom's legal business framework. Furthermore, business organizations
are discussed, both unincorporated business groups and legal business
organizations in the United Kingdom.
Sole Trader
This firm is concerned with numerous types of business that are carried out
efficiently. It enables the organization to conduct business in a more efficient
manner. According to the workings of this organization, the single owner of the firm
performs all types of work because they are responsible for all commercial activities.
The owner of these businesses is known as a sole proprietor, and he or she is
responsible for all business-related tasks on their own (Shanahan and Hopkins,
2019). Furthermore, the registration process is facilitated by the use of an INHRC
number and a name that has been issued solely for the purpose of facilitating
business identification. Since then, the only way to manage these organizations has
been to own a firm. Personal sources of funds, such as family and friends, or any
personal relationship, are used to secure funds. The companies have advantages
such as profit that has been earned and maintained by the owner, allowing profit to
be stored effectively throughout multiple business processes. It is also owned by a
lone proprietor, which speeds up the formation process and allows for a quick start.
These organizations are exempt from taxation, and the only tax that must be paid is
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by the owner. The organization's disadvantage is that money are not always
available on time, causing the organization's operations to fall apart. In addition, the
organization suffers significant losses, which can lead to the closure of the business.
Then there's the issue of unlimited liability, which is one of the most concerning
aspects of a sole proprietorship business. The occurrence of loss an proprietor
requires to meet needs of liability at any cost which has been implied making needs
occurred in terms of personal asset used for discharging liabilities.
Partnership
These business organizations are founded with the assistance of business
organizations that assist in the formation of two or more people. These types of
corporate organizations are founded with the help of two or more people. According,
to this, both individuals get together to form a business entity, such as a partnership,
with the common goal of achieving profit-making objectives in a more efficient
manner. Business organizations are able to expand more effectively as a result of
the organizations. These organizations are divided into two categories, as follows:
General Partnership
Advantage is based over less formal obligation and burden is shared by partners.
Disadvantage of organization is based upon legal status making business
organization face over legal issue in future. Then comes another disadvantage that
is based upon death of partner.
Limited Liability
These businesses are part of a partnership, which is formed with the help of
two people who have a common goal of doing business and profiting from it. In
general, the basic partnership structure has been followed, which includes all types
of investments made by the partners themselves. This type of partnership protects a
business against a variety of risks, costs, rewards, and responsibilities that come
with running a business. The organization has been handled entirely by the partners.
The formation process is straightforward, requiring only the generation of an INHRC
number and the creation of an agreement when legal considerations are taken into
account. The organization, which is run by the partners themselves, gets work done
efficiently above formal obligations. These types of partnership firms aid in the
completion of company tasks with the assistance of partners, who handle work in
accordance with their respective investments.
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Recommendations for IOM Solutions
In reference to the case situation, it has been seen that IOM Solutions is
prepared to expand through partnerships, allowing business activities to be
completed efficiently(Surdam, 2020).
Conclusion
As a result of the foregoing explanation, it can be concluded that business
laws are laws that have been utilized to carry out numerous functions that enable
businesses to function efficiently. These laws have resulted in the creation of
legislation and acts aimed at improving the efficiency of company operations. The
study then went on to clarify the different types of business organizations and give
an outline of their legal structures. Finally, a business kind has been chosen for
expansion.
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REFERENCES
Books and Journals
Buchheit, L.C., 2019. Ethical considerations in the representation of sovereign
clients. In Research Handbook on Law and Ethics in Banking and Finance.
Edward Elgar Publishing.
Burri, T., 2021. The New Regulation of the European Union on Artificial Intelligence:
Fuzzy Ethics Diffuse into Domestic Law and Sideline International Law.
Available at SSRN 3865149.
Conrad, C.A., 2018. Ethics in Business Education. In Business Ethics-A
Philosophical and Behavioral Approach (pp. 327-337). Springer, Cham.
Courcelles, D., 2019. The Ethics of the Merchant in the Islamic Faith: From Ibn
Khaldoun to Islamic Finance.
Dickinson, A.L., 2017. Recent Ethics Opinions of Significance. J. Legal Prof., 42,
p.291.
Fairchild, and et. al., 2018. 14. Health Justice. In Public Health Law and Ethics (pp.
587-612). University of California Press.
Kubacki, K., Szablewska, N. and Kennedy, A.M., 2019. Guest editorial: Social good
and ethics in social marketing for wicked problems. Journal of Social
Marketing, 9(4), pp.485-489.
Phillips, P. and Moutinho, L., 2018. Business ethics. In Contemporary Issues in
Strategic Management (pp. 178-194). Routledge
Shanahan, K.J. and Hopkins, C.D., 2019. Level of agreement between sales
managers and salespeople on the need for internal virtue ethics and a direct
path from satisfaction with manager to turnover intent. Journal of Business
Ethics, 159(3), pp.837-848.
Surdam, D.G., 2020. Examples of Mid-Nineteenth-Century Business Ethics in
America. In Business Ethics from the 19th Century to Today (pp. 71-99).
Palgrave Macmillan, Cham
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