Types of Businesses and Sources of Funds in UK Economy

Of Business

Contents
INTRODUCTION.......................................................................................................................................3
QUESTION 1..............................................................................................................................................3
Types of frameworks or legal statuses of the business together with its strength and weakness..............3
Evaluation of various sources of finance that is available for business start- up together with its pros
and cons...................................................................................................................................................9
QUESTION 2............................................................................................................................................10
Three different types of sectors which operate within the UK economy and the difference between all.
Comment on their value in UK economy..............................................................................................10
QUESTION 3............................................................................................................................................12
Identify two HR policies and its importance in modern workplace.......................................................12
CONCLUSION.........................................................................................................................................15
REFERENCES..........................................................................................................................................16

INTRODUCTION
The business is regarded as an activity which contributes in making the living of the
individual or making the money by trading or manufacturing the goods or services. It is the
activity which is undertaken with the aim to generate maximum profitability. The business
operates in the environment which influences its working and decision making. It is divided into
two main categories which includes the internal environment that involves those factors which
are within the organization such as employees, resources, vision, mission, etc. while other is
external environment which involves that factors which are beyond the control of the
organization and have major influence on functioning of the companies (Edokpolor and Chukwu,
2017). This report is split into three parts of which first shall cover the types of businesses and
sources of funds, second is types of sectors that affect UK economy and third part shall deal with
human resource policies.
QUESTION 1
Types of frameworks or legal statuses of the business together with its strength and weakness.
The business is usually undertaking such activities which can help the organization to
achieve its objectives. There are various types of businesses which are formed with the particular
momentum that is based on the perceived demand for the offering. Each of the types of business
organizations has different aims but their intention is to grow rapidly by providing such goods or
services to the people which can address the particular gap in the market (Spencer, 2020). There
are various kinds of businesses which are initiated as start-ups that are narrated thereunder-
Types of businesses Legal statuses of
businesses
Strength Weakness
Public
organizations:
These are those
businesses which
are owned and
There are mainly three
types of public
organizations which
includes the following-
 Central: These are
 The main
advantage of
this it has
autonomy
where it
 The
weakness of
these
businesses is
that there is

controlled by the
government with a
sole motive of
doing welfare of the
society. Their
purpose is not to
generate profits
rather they only
works to do welfare
for the society by
fulfilling the
demand of the
people.
owned managed
and controlled by
the central
government and its
working is spread
in whole of the
country.
 State: These are
also owned and
managed by the
central government
but its functioning
is in a particular
state.
 Local: These are
those organizations
which are managed,
controlled and
owned by the local
authorities of
government and its
working is only in
particular local area
of the state
(Plotnikov and
Plotnikova, 2019).
enjoys
flexibility
and
independence
in the
operations.
 The public
organizations
can
formulate
such policies
which
promotes the
welfare of
people as
these are
subject to
parliamentar
y scrutiny.
high level of
political
interference
and has to act
in accordance
with the
political
masters.
 There are
many
instances
when the
interest of
consumers is
ignored by
these
corporations
as they
operate in
monopolies
and absence
of
competition
can result in
lethargic
functioning
which can
reduce the
focus on
consumers,
thereby