Legal Issues in Business Organizations, Tourism and Events Organizations

Legal Issues in
Business
Organizations,
Tourism and Events
Organizations
Contents

INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The legal system in UK comprises of the statutory as well as common law. There are
different legislations being enacted in order to regulate the working of different sectors so that
they can function effectively. There are various types of business organizations which are
formed that includes sole proprietorship, partnership, corporation and companies. These have a
significant impact on the economy as they contribute in the GDP of the nation by fulfilling job
opportunities in the country and raise the standard of living of the people. there are many legal
issues also faced by the businesses which includes compliance with standards and policies, and
many others (Ono, 2019). This essay shall cover formation of different types of business
organizations and appropriate legal solutions in order to resolve the disputes.
MAIN BODY
The business organization can be referred to as the entity which is formed with a sole
purpose to carry out the commercial enterprise. These are predicted on the system of law which
is governed by the contracts, exchange, incorporation and property right. They have the sole aim
to generate maximum profits and revenues by undertaking the commercial activity such as
trading or manufacturing.
There are various types of business organizations which are legally formed in UK which
includes firstly the sole proprietorship. It is an entity which is suitable normally for the small
scale business and has only one single owner. There sole trader is responsible for the functioning
of the business and has the decision making powers. There is a personal liability of the owner for
all the debts of the firm which means that its personal assets may be sold in order to repay the
debt and liability of the firm. The sole owner takes all charge right from running the business to
making all decisions for the benefit of the firm (Mishulina and et. al., 2019). The main advantage
of incorporating this business includes that the decision making power rest in the hands of owner
but its disadvantage is that there is personal unlimited liability of the owner. The formation of
sole trader involves a simple process which includes making registration at HMRC with the
suitable name. it takes less cost and time to make the registration of the sole proprietorship.
Another organization is partnership which involves two or more than two members who
mutually decides to establish the firm. They are known as partners who agrees to share the profit
and loss of the firm. The partners also share cost, risk, responsibilities and benefits of running the