Legal Statuses of Businesses and Finance Sources in UK Economy

Report

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
QUESTION 1...................................................................................................................................1
Various legal statuses of businesses and their strength & weakness .....................................1
Evaluate different finance source with their strength & weakness........................................5
QUESTION 2...................................................................................................................................7
Different types of sector operate in UK economy with their differences and provide their
value in UK economy.............................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
A business is refers as an organisation or enterprise entity engage in commercial,
professional or industrial activities, business can be related to profit or non-profit organisation. It
is also an economic activity that involves in exchanging, sale, production of good & service or
purchase with a motive behind to earn profit and also to satisfy needs of customers.In this report
there will be a discussion about various types of business legal statuses for company to adapt
with their strength and weakness. (Al-Ajlouny and Nawafleh, 2018) There will be a brief about
three sources of finance with their evaluation of strength and weakness of each source. At last
there will be identifying three sectors within UK economy with difference between those sectors.
MAIN BODY
QUESTION 1
Various legal statuses of businesses and their strength & weakness
Legal statuses of business refers to legal identity through which any entity, association or
company is recognized and also has a sufficient capacity for carrying out and taking on
obligations of activities that has a legal responsibility in regard to third party. (Arshi and et. al.,
2020)
TYPES OF
BUSINESSES
LEGAL STATUES STRENGTH WEAKNESS
Public organisations-
It includes business
that are managed,
owned and controlled
by government.
Enterprise, businesses
and entity comes
under control by
government and
provides public
services to society.
There are three kinds
of public organisation
which government has
formed such as,
 State- the
businesses in
State are
owned,
managed and
controlled by
state
 Public
organisation
promotes
welfare of
society and
decisions of
business were
made
according to
society needs.
 These
 In public sector
the losses due
to any factor
will be bear by
government.
 Because public
sector are
owned by
government the
interference
will be high.
1

(Rossetto and et. al.,
2018) Public sector
organisation focus on
providing service to
public, welfare, the
legal system, natural
resources, health
services and includes
education.
government,
but it is limited
to particular
state.
 Central- the
businesses that
are controlled,
managed and
owned by
central
government
and operates in
whole nation.
 Local- the
business that
are managed,
owned and
controlled by
local
authorities and
the operation is
restricted to
particular local
area of state.
organisations
provides a
essential
facilities to
people with
less profit
margin and at
low costs.
Private organisations-
The businesses that are
owned, controlled and
managed (Sarja,
Onkila and Mäkelä,
2021)by private
individuals and have a
Sole proprietorship-
the business are owned
by single individual
and has full control
power company, but
the operation is
restricted to small
 The owners of
private
organisation
has limited
liability.
 Business in
private
 Private
organisations
requires
various legal
formalities.
 For making
any decision
2