Key Sources of Laws for Business Organizations in the UK

BSc (Hons) Business Management
BMP4002 Business Law
Assessment 2
Report describing the key sources of
laws as the legal context for business
organisations in the UK
Submitted by:
Name:
ID:
Contents
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Table of Contents
Introduction .............................................................................................................................2
Businesses & Organisations in the UK......................................................................................2
The legal business structure of UK companies.........................................................................3
Sole Trader:..........................................................................................................................4
General Partnership:............................................................................................................4
Partnership:......................................................................................................................... 5
Limited Liability:...................................................................................................................5
Recommendations for IOM Solutions.......................................................................................6
Conclusion................................................................................................................................ 6
REFERENCES............................................................................................................................. 7
Introduction
Business is a type of industrial or commercial activity which tries to gain profit. It
mostly works towards producing and selling goods or providing services for the benefit of the
company. Business can range from a small scale business to a large scale business. They
require a range of planning, policies and strategies to form a proper legal business structure
for themselves like sole trader, corporation or a Multi National Organization. In order to be
successful, they need to reach their goals and objectives so that proper revenue can be earned
by them. Business activities take place anywhere in any environment by one person or by
several people who try to expand their business so that they can sustain for a longer time in
the market while also creating profits for the company(Adamou, Kyriakidou and Connolly,
2021). These organizations while following a set of rules and regulations can have a greater
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financial gain among its competitors. The business laws govern the business environment and
the people involved in it by providing legislation and properly stating how to form and run a
business. These provisions are essential for a business to run smoothly. This report will cover
in detail about Sam and his business as a Sole Trader, various forms of business structure,
legal obligations, director's role in a company and will provide suitable advice to Sam for his
Business.
Businesses & Organisations in the UK
The Companies Act of 2006 governs the business environment of United Kingdom. It
provides provisions which helps different business structures to operate effectively according
to the law. Various Employment laws also provide how a business treats its employees that is
why the companies need to comply with these laws as well. Companies are referred to as
artificial person by having a distinct identity of a professional entity. They as a company have
a distinct nature of having a separate identity, everlasting existence, distinct properties,
common seal and stamp and rights and responsibilities of suing any company or getting sued.
UK companies and their business transactions includes various agreements with their heads
and non disclosure clauses (Baillie, 2019). They also include selling and purchasing various
shares and assets, letters of intent, etc.
The companies also have certain liabilities called as Vicarious liabilities wherein it has
been established that if any employee while working in an organization commits any
incorrect act against any other person then the employer will be held liable for that act and it
will be his responsibility to act upon it. Business negligence is also conducted by some
businesses while operating wherein the business can be held liable if it fails in the
performance of its responsibilities in accordance to the set of norms which are prescribed for
the performance of its duties. The proper conduct and running of a business is in the hands of
the Director of the company who has various roles and responsibilities which need to be
performed by him. If obligations are not performed they can lead to liabilities which are
proper decision making by acting within the powers assigned to his post, he has to make
judgments which lead the company to success while also resolving the disputes which arise
within the organization (Flögel and Gärtner, 2018). The other directors of a company can hold
any director liable if he breaches any of the duties or responsibilities assigned to him. If the
company or business suffers any loss because of him he can be asked to make compensations
for the same while his contract with the company can also be terminated. His breach can also
lead to his disqualification from the post, he can also be held for offence of criminality if any
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