The Structure of Business: Legal Status, Sources of Finance, Sectors of Production

This report discusses the legal status of business organizations, sources of finance for startups, and sectors of production in the UK economy. It includes a table showing the legal status of different types of businesses, as well as an evaluation of the strengths and weaknesses of different sources of finance such as bank loans, crowdfunding, and venture capital. Additionally, it identifies the three sectors of production in the UK economy and explains the differences between them. Course code and college/university not mentioned.

The Structure of Business

Contents
Introduction.................................................................................................................................................3
Main body...................................................................................................................................................3
Question: One..........................................................................................................................................3
Construct a table to show the legal status of business organisation that can be adopted by them with
respect to their strengths and weaknesses............................................................................................3
Identify and evaluate the strength and weaknesses of sources of finance which are available for the
startup company......................................................................................................................................6
Question: Two.........................................................................................................................................7
Three sectors within the United Kingdom economy which business can operate................................7
Question: Three.......................................................................................................................................8
Identify the two HR policies and also explain their importance with context to the modern workplace
.............................................................................................................................................................8
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11

Introduction
Business is a type of a company where the owners are engaged in order to conduct their
commercial, industrial or professional activities. The company used to earn revenue by providing
their goods and services to the targeted customers and take competitive advantage from
Marketplace. These entrepreneurs used to organised their efforts and activities because this helps
them to provide the products to the targeted audience and used in order to satisfy the customers.
There is the wide range of business which can be e killed from sole traders to the international
corporations (Clauss, 2017). This report is being discussed about the seven types of business
companies and their strength and weaknesses with context to the legal status in the nation. There
are several sources of funds which can be used by the company so that they can easily start of
their business organisation in the competitive market. Furthermore, the report is being discussed
about the policies of Human Resource Department and their importance with concern to the
modern workplace.
Main body
Question: One
Construct a table to show the legal status of business organisation that can be adopted by them with
respect to their strengths and weaknesses
Base Meaning Strengths Weaknesses
Private business
organisation
The sole
proprietorship is the
type of the private
business company
which can be start up
by the single entity in
the competitive
It is the least
expensive business
which can be started
by the single entity.
There are less number
of rules and
regulations developed
Small business
companies use to face
several challenges
with respect to raising
the points and
investment as this
makes it more

market (Selyutina,
2018). It is treated as
the simplest form of
company as it is easy
for the incorporation.
In this type of sole
trader the owner will
be the whole soul
individual who will be
liable for the
liabilities. It is
generally owned and
managed by the small
business organisations
who wants to be self
employed people.
This helps them to on
their livelihood.
by the government in
order to regulate these
types of businesses.
The sole traders have
100% control over the
business organisation
as they used to
manage and funds
their own companies.
There are no
shareholders are the
board of directors
who are responsible to
manage the
operations.
difficult for the sole
traders to grow their
business in the
market. In this type of
business a single
entity cannot ask the
outsiders to help them
in order to raise
capital (Purwanto and
et. al., 2019). This has
resulted in the slow
growth of the
company as it makes
it more difficult for
the company to
achieve their set
goals.
The death, insolvent,
incapacity to contract
of the sole trader
resulted in the
dissolution of the
firm.
The owners of these
types of organisations
will be liable to
address the losses and
other liabilities.
Public Company Public company refers
to such types of
It is easy for the
company to raise
It is difficult for such
a type of business

Organisation in which
the general public
used to race the
capital so that a
company can
smoothly conduct
their operations. The
shares of these types
of organisations are
available in the open
market. The general
public can buy the
shares from the stock
exchange in order to
become the
shareholder in an
organisation. The
steps of activities help
the company to
expand their business
because of raising the
funds.
capital because the
company can issue the
prospectus to the
general public. These
are the steps of
activities that help the
company to take
competitive advantage
and easily expand
their business while
satisfying the
requirements of the
targeted audience.
Most of the time the
steps of firms are
listed in the
recognised Stock
Exchange.
This activity helps the
company to take
financial opportunities
as they have a
potential source of
finance in order to
raise their capital
which helps the
company to provide
better services to the
targeted audience
(Arora and Raman,
2020).
organisation in order
to protect the rights of
the shareholders
because they are
required to develop
and follow strong
rules and regulations
which are developed
by the authority.
It is important for
such organisations to
have a higher level of
transparency because
they are required to
provide the
information in the
public domain which
has shareholders to
attract towards the
company in order to
buy their shares.
It is difficult for the
company to control
the general public in
order to become the
shareholders and for
the directors have and
ultimately having a
power to conduct the
operations of business
and thus resulted in

many times several
issues which are faced
by the company.
Charitable It is the another type
of organisation whose
primary objective is to
work for the benefits
of the society as they
are engaged in serving
various services
which are beneficial
for the public interest
and working in order
to provide a common
good. These types of
organisations are
partially depending
upon the donations
from the big
organisations as it
helps in representing a
major form of
corporate
philanthropy.
The main objective of
the steps of
organisation is to
satisfy the high
demands of the
general public in
order to uplift their
basic standards of
life.
These types of
organisations are
working on the
donations which are
provided by the large
scale off company
(Beisenova,
Spatayeva and
Shakharova, 2020).
These types of
companies use to
provide job
opportunities which
helps the people to
earn their livelihood.
These types of
companies also helps
the people to increase
It is difficult for our
charitable
organisation to raise
the capital as it is
working from the
donations only.
The lack of
community awareness
resulted in a weakness
of charitable
organisation.

their buying power
which resulted in the
development of the
economic conditions
of the nation.

Identify and evaluate the strength and weaknesses of sources of finance which are available
for the startup company
Bank loan:
It is the type of a loan which can be taken by the small business organisation in order to
start their business. In this type of loan the bank used to provide the financial assistance to the
people who are seeking it and they are liable to pay back the principal as well as interest amount
to a bank. It is the type of secured loan where the person who is seeking the loan is responsible to
provide Collateral security in case the borrower defaults or doesn't repay the loan, then a bank
can forfeit their security.
Strengths
 It allows one to repay as per their convenience with respect to the installments on a
regular and timely basis.
 The bank also used to provide overdraft facilities to the predators and also provide credit
card facilities with a maximum limit which the card holder is not authorised to utilise in
one go.
Weaknesses
 It is the very lengthy process which two people who are seeking the loan have to
undergo.
 Low approval rates for small business companies and this has resulted in difficulties in
order to take loans.
 It is difficult for the company to take the loans because a lot of paper work is required to
full fill the conditions of the bank.
 The company uses several formalities which are required by the company to address it.
Crowdfunding
In this type of source of funds the companies can raise their capital from a small amount
as it is asked by a large number of people to take financial help in order to reach the capital as a
new business venture in the competitive market. Mostly, this type of source of funds is easily
accessible to the vast network of people through social media sites and other websites
(Oleszycki, 2018). This is the type of platform where the investors and entrepreneurs come
together in the same platform in order to expand their business. It is the fastest way to raise the
finance with no upfront fees charged by the organisation. This platform which can be used by the

organisation in order to take feedback and expert advice from their audience so that they can
improve their products and services.
Strengths
 It is the fastest to be with the startup companies that can be used in order to raise funds
with no upfront fees.
 It is the type of an alternative finance option which is also helpful in order to develop the
most loyal customers into the financing process.
 It is the another option which the company can taken by the company to develop more
loyal customers this helps the company to enhance their sale which will be resulted in the
growth of an firm in the competitive market.
 This helps the company to take the feedbacks for the customers which helps them to
innovate their goods and services in such a manner so that they can easily achieve their
ultimate goals.
Weaknesses
 It is important for the organisation to build up interest before the project launches so that
they can easily raise the funds.
 This is not an easy process as compared to the traditional ways of sources of funds.
 It is important for the start up companies to build up interest before launching their
project so that the investors will be interested in providing the source of funds.
Venture Capital
It is another type of source of funds which can be used by the companies in order to take
financial help as it helps them to increase their capital (Lewin, 2019). Most of the time the
venture capital is typically allocated with the small companies in order to have potential growth
which helps the company to expand their business in the competitive market.
Strength
 The huge network of connections is required by the companies in order to raise the
capital from the competitive market. This helps the firms to grow and become successful
in the market.
 It is important for these types of organisations to appoint a board of startups so that the
venture capitalist can take part in order to make decisions which are beneficial for the

organisation. This helps the company to expand their business as the capitalist used to
provide guidance so that we can develop the strategies in order to achieve their goals.
 The company is not responsible to pay back the invested amount to the venture capitalist.
Weakness
 This type of source of funds helps the small business companies to raise their funds but in
return they take the equity shares of an firm and because of which only they can raise the
transactions with the company. This leads to difficulties for the firm to have a smooth
functioning.
 The venture capitalist also takes part in order to take the decisions with respect to the
functions of an enterprise.
 The venture capitalist use to redeem their investments with in a period of three to six
years only.
 The venture capital funding was a huge amount of risk.
 The primary focus of the capitalist is to redeem their investment within three to five
years.
Question: Two
Three sectors within the United Kingdom economy which business can operate
The economist use to divide business sectors so that they can provide their goods and
services to their targeted customers. There are three main types of industry which can be
operated in the competitive market. The production are discussed below:
 Primary Production: this involves acquiring raw material so that the entrepreneur can
further give it to the secondary production in order to manufacture and assemble it which
helps the tertiary production to develop finished goods.
 Secondary production: in this type of production the entrepreneurs are engaged in
manufacturing and assembling raw materials so that they can convert it into finished
goods (Lu and et. al., 2020). For example developing houses, bridges, roads.
 Tertiary production: in this type of production the entrepreneurs are engaged in
commercial services which help them to support the production and distribution process.
Difference between primary, secondary and tertiary sectors of production

Primary sector Secondary sector Tertiary sector
The agriculture and allied
sectors services are under the
head of the primary sector.
This sector includes the
manufacturing and industry
sector.
The entrepreneurs are
engaged in order to provide
their services of providing
finished goods to the targeted
customers.
The primary sector is working
in order to provide the raw
materials to the other factors.
In the sector, the companies
are used to changing one good
into another so that they can
provide finished goods to the
targeted audience.
In this type of sector the
companies are engaged in
providing both primary and
secondary sectors.
It is the type of an
unorganized sector
They are working in an
organized manner.
It is also comes under an
organized sector as the
employees are working with
the help of trending
technologies which helps them
to provide better goods and
services to the targeted
customers.
The company uses traditional
techniques in order to generate
raw material.
In this type of production the
entrepreneurs uses semi
modern techniques.
In this type of sectors the
companies uses modern
techniques as this helps them
to attract the targeted
customers which helps them to
raise their sales (Cui, Meng
and Lu, 2018).

Question: Three
Identify the two HR policies and also explain their importance with context to the modern
workplace
Equality and diversity policies
It is important for every organisation to have an equality and Diversity policy within the
working environment. The diversity refers to the existence of several characteristics of people in
the same group. It is important for companies not to differentiate with respect to the race, gender,
religion, age and other factors. For this the human representatives post department use to
motivate the employees within the organisation so that they can fulfill the requirements of
equality and diversity policy (Cai and et. al., 2020). This is also beneficial in order to provide
better opportunities to the candidates and other employees. Enter the department used to
motivate the employees which belong to different age, colour, disability, family and other things.
As this helps them to develop a Unique Identification and the company is not supposed to
differentiate the Employees with respect to their identification.
Importance
 It helps the companies to motivate the employees and also used in order to retain them for
a longer period of time.
 This policy is used by the company so that the team members can work together and
participate in every activity.
 The diversity and equality policy helps the organisation in order to manage the workforce
and is beneficial for the employees so that they can manage balance between their
personal and professional life (Tian and Robertson, 2019).
 These policies helps the company to develop better relation with their employees
Health and safety policies
This type of policy helps the organisation to take the proper care of their employees who
are working within the organisation. This helps them to make better decisions and guide the
actions with respect to health and safety measures which must be adopted by the company in
order to take care of their employees (De Oliveira, Cavazotte and Alan Dunzer, 2019). These are
the important policies as the government and other lawmakers have developed several rules and
regulations so that the companies will be liable in order to take care of their employees. This also

helps them to develop a positive and healthy working environment which results in better
outcomes from the workforce (Jung and Takeuchi, 2018). It is the type of a general duty of the
employer to provide a safe workplace.
Importance
 This type of policy must be looked into by the organisation as it helps them to take care
of their employees which also resulted in developing a positive goodwill in the
competitive market as it is treated as a guest which shows that the company is willing to
take care of their employees.
 These policies help the company to develop a certain amount of credibility (Labhe and
Paturkar, 2020). The best part of this policy is to create a strong workforce which helps
the company to achieve their common goals in an effective manner.
 This type of policy has the company to increase their employees as they are providing a
luxury and perks because the workforce deserves it (Usmani and Das, 2021). It is
important for every type of organisation to improve their health care and safety measures
as this helps them to motivate the workforce to work within the organisation.
Conclusion
From the above report it can be concluded that it is important for every startup company
to analyse their strengths and weaknesses with respect to the legal status in their nation, as this
helps them to achieve their goals and objectives. There are several sources of funds which can be
used by the company in order to raise their capital so that they can have a smooth functioning
and find a way to achieve their goals in a better manner. There are three sectors within the
economy which are operated by the business organisation such as primary, secondary and
tertiary. These types of sectors play an important role in order to develop economic conditions of
the state. It is important for every type of business organisation to have a Human Resource
policies so that they can improve their working environment which attracts the new candidates to
work in such a firm.

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