The Structure of Business

Structure of Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Describe the various legal status of enterprises that a company has in the United Kingdom, as
well as their advantages and disadvantages.................................................................................3
Set up the merits and drawbacks of THREE financing sources for the company selected.........5
Assessing the three areas of the United Kingdom economy in which a firm can operate and
showing how the three sectors are different?..............................................................................8
Explain the relevance of human resource policy in the company...............................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Starting a business needs a variety of resources, including inventive ideas, cash, people,
legal processes, and other resources that must be utilized efficiently in order to achieve
commercial success. This entails making the best use of innovative ideas in order to deliver
market offerings that best meet market demand, which necessitates an understanding of the
demographic and psychographic factors of a specific geographical location, such as age, people,
income, and lifestyle patterns, among other things (Ribeiro and Nagano, 2018). As a result of
evaluating all of these criteria, “Fashion Clothes Company” is a new company start up in the UK
market, with high preferences and living standards in the UK, where people desire to wear nice
and stylish clothing, and therefore the new business concept in the UK market is justified. To
meet market demand, the company concentrates on producing high-quality fabric and stylish
clothing.
The following responses are evaluated in this report: a detailed investigation of the business
legal structure in the United Kingdom, an evaluation of different financial sources for businesses
and how they work for businesses with the relevant strengths and weaknesses applied to the
business, three different business sectors of the UK economy and their differences, and a detailed
investigation of the UK economy.
MAIN BODY
In terms of its legal position, a business structure refers to how a corporation is organized.
When forming a firm, choosing a suitable business structure allows your organization to be
legally recognized and offers rules for how it should be operated. Who owns the firm, how
earnings are divided, and which management do which responsibilities are all determined by the
corporate structure (Ode and Wadin, 2019). It's also important for tax and liability reasons, as the
firm will be taxed differently based on its structure, and managers and owners will bear varying
levels of responsibility in the case of misconduct or a lawsuit.
Describe the various legal status of enterprises that a company has in the United Kingdom, as
well as their advantages and disadvantages.
According to the nature of the business, legal statuses of the business are split into limited
liability and registered charity. These legal statuses are briefly explained below:
Public Limited Company Private Limited Company Registered Charity

A public limited corporation
is one that engages in the
delivery of shares to the
general public.
Because public limited
companies have so many
advantages, more than 90%
of UK firms are public
limited companies. These
advantages of a public limited
company include the ability
to obtain simple business
financing, the legal existence
of the business is distinct
from that of the PLC's
owners, the ability to increase
business capital by issuing
public shares, and the firm's
everlasting commercial
existence.
The disadvantages of the
business include the fact that
it is answerable to several
shareholders, with the owner
of the firm also being
accountable to these vast
numbers of shareholders,
resulting in a loss of control
over the business's operations
In order to raise business
financing with a restricted
number of shareholders, the
private limited company
simply means the businesses
that cannot give a share to the
public and the shareholders
have not control in the
business operations (Bondel,
Faber and Matthes, 2018).
The company is operating in
a distinct financial
transaction, as are personal
interactions between owners
and the company. The profit
earned by the company is
divided in accordance with
the shareholders' acquired
dividends. The company
owner can only withdraw the
money for any transaction
from the company.
There are several advantages
to forming a private limited
corporation. Most of those
are: the number of
shareholders is limitless, that
also helps to reduce the
corporation's potential
burden; the private limited
A registered charity is a
company that provides social
services to individuals while
also doing commercial
activity for philanthropic
reasons. The advantages of a
registered charity include tax
benefits, a simple financial
solution, and the opportunity
to acquire trust and
trustworthiness in society.
The disadvantages of a
registered society include the
inability of the firm to acquire
cash from equal capital,
restrictions on carrying out
commercial operations, and
compliance with all UK
government regulations.