Nature Formation and Management of Business Organisations

Project 2 Nature
formation and
management of
Business Organisations

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Businesses & Organizations in the UK.......................................................................................3
The legal business structure of UK companies...........................................................................4
Recommendations for IOM Solutions........................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The English legal system is complex and unique. It is based on law of equity that provide
the equal protection to all individual. Law is defined as the legal principles and standards that
ensure the safety and security of an individual. The concept of business law is wide and covers
all the rights and responsibilities of an employee and employers within the organisation.
Business law provides provisions related to company, contract and employment related provision
that safeguards the general interest of an employee and protect them from all kinds of
discrimination that may violates their legal right (Al-Shabatat, 2021). The business structure is a
legally formed organisation that ensure the medium of raising capital, impose certain liability on
the owner and provide procedure for incorporation of a business and other standards that are
required to govern the activities of a business. This report will cover various forms of business
organisation and its procedure for formation of a business. Further, it will recommend the best
alternative to the IOM solutions in order to expand their sole trader business into other potential
business.
TASK
Businesses & Organizations in the UK
The UK business law is a comprehensive and detailed document that provides the procedure
for incorporation of company. It also provide legal compliances to an organisation so, that they
can effectively run their business. A company is a separate legal entity that has their own legal
existence as per the Corporate Act of 2006. A company has several unique features which
includes common seal, perpetual succession, separate legal existence, transferability of shares
etc. The management of a company is responsible for the effective decision making of an
organisation. They are authorised to bring transparency in the working system so, that growth of
an organisation can easily be achieved. The executive authority frame policies and plans to
sustain growth and success of an organisation. The company Act of 2006 defines the various
kinds of companies and their power to transfer share to the public. The liability of the members
of company has limited and not required to use their personal assets to pay off debts.
A company formed by the Act of 2006, are empowered to ensure the safety and security of
the employees within an organisation (Bouchoux,2022). They owes certain duties and