The Structure of Business: Legal Statuses, Sources of Funding, and Sectors within UK Economy

Structure of business

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Question One:..................................................................................................................................3
Legal statuses of businesses........................................................................................................3
Sources of funding......................................................................................................................6
Question Two:..................................................................................................................................9
Three sectors within UK economy..............................................................................................9
Question Three:..............................................................................................................................11
HR policies and its significance................................................................................................11
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Business structure is the set of activities which includes task allocation, supervision,
coordination, and supervision to accomplish company goals. It describe legal structure of
organisation which impact its business operations. The UK government support start-up business
by granting them suitable amount of loan (Aaldering, 2018). The chosen start-up business for
this report is Fashion creation, which offers varieties of products and services in retail. Fashion
creation execute business activities in the parts of UK and deals in retail of fashionable clothing
segment. The appropriate source of funds is required for operating day to day expenses. The
report covers various legal statuses of business with its strengths and weakness. The report
includes source of finance that is available to the start-up business. It identifies three sectors of
economy in which business can operates to promote value of UK economy. The report also
covers HR policies and its significance in the modern workplace setting of the business.
TASK
Question One:
Legal statuses of businesses
Start-up business explore several opportunities (business expansion) and face numerous
challenges (competition level). The legal statuses of business structure help in setting up star-up
business and provide them separate legal entity (Acuña-Carvajal and et.al., 2019). The legal
statuses is the significant element for evolution of company which own appropriate legal
structure and rules. There are some legal statuses of business which can be opt by Fashion
creation to execute its business activities.
Legal statuses Meaning Strengths Weakness
PLC The PLC is stands for
Public Limited
Company, which offer
shares of stock to the
general public. The
shares holders of PLC
have limited liability
 PLC can
explore growth
and expansion
opportunities
because of its
acquisition
funds in the
 PLC require
some legal
requirements
(trading
certificate) to
protect the
interest of

who are not
responsible for any
business loses.
Example- Amcor PLC
, Anglo American
PLC, Antofagasta
PLC.
research and
development
which support
new project
and market-
base.
 Shareholders
have limited
liability which
push individual
to invest in the
enterprise.
 Going public
enhance exit
business option
for the future
perspective.
 PLC have
negotiation
opportunities
between
suppliers and
company
which support
economies of
scale.
shareholders.
 It has more
complex
accounting
requirements
with high cost.
 PLC involves
the risk
associated with
hostile
takeover due to
lack of control
over
stakeholders.
LTD Limited company is an
enterprise which
execute business
activities where each
shareholder's is highly
 Maximum
advantage of
having LTD
company is
limited liability
 LTD must
registered its
business in the
companies
house that will