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

This article discusses the legal statuses of businesses, funding sources for start-ups, and sectors in the UK economy. It covers the strengths and weaknesses of each and their impact on the economy. The primary, secondary, and tertiary sectors are discussed in detail.

The Structure of Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Different legal statuses of business along with strength and weaknesses..............................3
Evaluating the funding sources for the start-up businesses with strength and weaknesses.. .8
QUESTION 2...................................................................................................................................9
Different sectors which operate in UK economy along with differences and values to UK
economy.................................................................................................................................9
QUESTION 3.................................................................................................................................10
Identifying Human resource policies along with its importance within modern workplace10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business refers to the enterprising or organisation entity which are engaged in the
commercial, professional or industrial activities. Business structure refers to the legal structure
that may include different activity and operation in day to day business. It may include making
money through the business and have the aim to generate higher profitability and business
revenue. There are different activities which are involved in the business environment that can
affect the organisational functioning, decision making and their working. In this, there is
discussion about the different legal businesses statuses along with their strengths and
weaknesses. There is also discussion about the finances which are available to business start-ups.
There is also discussion about the sectors of UK economy that business operates along with their
differences and values on UK economy. There is also discussion about the HR policies along
with comment on their importance to modern workplace (Włodarczyk and et. al., 2018).
MAIN BODY
Different legal statuses of business along with strength and weaknesses
There is different activity which should be done in the business organisation that help the
business to perform well and allow better and effective response towards the accomplishing their
aims and objectives. There are different businesses that are formed towards the specific
momentum and include perceived demand within market through offering. Each and every
business include their aim, objectives and nature which have common intention to grow along
with succeeding rapidly within competitive environment which are offered by the product or
services. It can enable and enough capable to address the market gap. There are different
business types that are initiated as the start-up and are discussed further.
Types of businesses Legal statuses Strength Weakness
Public organisation-
It refers to the
business which are
owned, controlled and
managed by the
government and have
some aim or motive of
There is different
public organisation
that are formed by
government which are
discussed further.
Central- Such type of
businesses is under
These are the business
organisation which
may formulate some
policies that can
perform well and may
promote society
welfare and are
Such type of business
is highly affected by
the political
interferences that
affect the business
operation and may
lead to create

welfare to public or
society. It is non-
profitable
organisation which
don’t have the
purpose to generate
the revenue for the
organisation. It has
the focusing on
welfare to humanity
and society thorough
fulfil their demand
and their needs by
their offering services
or products.
category which are
owned, managed or
controlled by the
government and are
spread to the whole
nation.
State- These are the
businesses that are
owned, managed and
controlled by the
central government
but have some
limitation in their
working that is
particular to state
only.
Local- Such type of
businesses is
managed, owned and
controlled by the local
authority and have
some limited working
that are to the limited
area of their state.
subjected to the
scrutiny of
parliament.
Public organisation
follows the autonomy
that allow to enjoy
independence along
with flexibility during
performing different
business operations.
disturbance in
delivery of their
services or products
that can promote
society welfare. It also
obliged to act
according to their
political parties.
There are number of
cases which can allow
to analyse that these
organisations avoid
their customer
interest. They also
work as monopoly
and create difficulty
when needed for
substitute and work in
lethargic way that
may impact the
business operation
purpose and avoid
customer interests.
Private organisation-
These types of
business are owned
and controlled by any
individual. They have
their sole motive that
Sole proprietorship-
These are the business
organisation which
comprises of any
single owner and have
full control over the
Here, owner is liable
to pay their personal
income tax on
business profit which
are generated in the
business.
These business are
generally ended by
either death of owner
or departure of owner.
Here, owner have the
personal liability

is generating high
revenue and high
profit for their
organisation.
business operations
and management.
They are having some
restricted working to
small scale due to
very less people are
engaged in this type
of business.
Here, owner have full
control over the
management and
business operation
and no any
interference of other
individual in such
businesses.
which include debts
of firm (Bai and et.
al., 2020).
Companies-
Such types of
businesses are
referred as the
separate entities and
are distinct from
owner and can also
know by the artificial
personalities and have
the power to sue
anyone to get used. It
includes two types.
Here, first is public
that include
subscribing the shares
of company and have
order to raise the
company shares.
Second is private
company which are
controlled and owned
by any individual who
is not a part of
Such type of business
owner has the limited
liability which have
extent to their share in
their business and
doesn’t include any
personal liability.
It has the strength that
owner may get
changed but the
business will run
further without any
disturbance and
company can remain
forever.
Such type of company
has lack of secrecy
and their working
along with function of
the company are
disclosed to public.
Such type of company
requires different
legal requirements
that requires more
time and efforts.

government.
Partnerships-
These are the business
entity which are
controlled, managed
and owned by two or
more people are
known as partners.
Here, owners
mutually decide to
share their profit and
loss, capital and
responsibilities
accordingly
Such type of business
includes sharing of
decision making
power along with
some responsibilities
within them as per
their expertise along
with their knowledge.
Here, it includes the
splitting of business
income which allow
partner to save their
tax.
Such business
includes personal
along with unlimited
liability of partner
against their firm.
Here, every partner is
liable to their debt or
liability to their firm
due to having joint
liability.
Limited liability
partnership-
This refers to the
extended version of
partnership which
includes the slight
difference that is LLP
where it includes the
limited liability of
partners that includes
as the separate legal
entity.
To run limited
liability partnership is
easy and include easy
procedure which run
and wind up firm in
comparison to the
private companies
(Saridakis and et. al.,
2019).
Here, partners of
limited liability
partnership have their
contribution in capital
along with personal
assets. It provides
protection through
liability.
There can be high
penalty for the non-
compliance with
companies.
Here, one partner who
have higher share or
rights on the company
which resist to vote
per share system.

Charitable
organisation-
It refers to the non-
profit enterprises that
should be registered
to get the status of
charitable
organisation from
government. It works
for the particular
interest along with
having paid staff.
Charitable trust-
Such businesses are
run by some small
groups which are
known by the trustees.
They are not elected
instead of that they
are appointed and not
incorporated.
Unincorporated
association-
This refers as the
membership
association in which
every member has
their rights to choose
activity which they
like to carry on. It also
works for public
benefits.
Charitable
organisation assess
cannot be used for the
personal purpose. It
can only use to fulfil
the objective for the
enterprise.
It also includes the
purpose of social
cause that allow to
trust public in return.
These are the business
organisation which
are expected to make
compliance with
regulatory
requirements that
include accounts,
return preparation and
others.
These are generally
dependent on the
charities for getting
funds which can allow
to carry on business
activities.
Voluntary
organisation-
These organisations
are not for making
profit and are
managed by staff who
are known by
volunteers.
Trust-
These are generally
governed and
regulated by the trust
deed that can help to
state the objective
about including
trustees name.
Association-
It can have governed
by legal document
These business
organisation provide
relief from the taxes.
This includes the
public recognition
along with trust which
can help in voluntary
organisation that can
carry out social causes
in easy manner.
There is public
Here, main purpose of
such enterprise to
perform some social
work and not to make
profit. So, it can say
that there is lack of
economic scale.

which include the
constitution through
the structure
objectives, power and
firm membership
(Lianos and et. al.,
2019).
recognition along with
trust which help to
voluntary organisation
in carrying out some
social cause more
easily.
Evaluating the funding sources for the start-up businesses with strength and weaknesses
To run any business there is need to fund which play an important role in businesses within
the UK which are going to discussed further.
Venture capital- It refers to the source of finance where investors support their fresh
entrepreneurs along with their talent which can offer their finance and their skills which
influence their capital to use those for obtaining them in long run. These investors are effective
and allow to provide better and effective response which are associated with providing business
skills to entrepreneurs along with their talent that can allow to use those opportunities of market
and help in getting high return on the investment (Lee and et. al., 2022).
Strength- This source helps to provide better opportunity for the enterprises that allow to
expand along with help in growing the business venture investors. This also enable them to take
risk with positive approach for business success.
Weaknesses- This is the one in which venture capitalist offers funds for the start-up
businesses which enable them to have equity in that business. When that enterprise flourishes
then that profit is divided within those entrepreneurs along with venture capitalists (Acquah,
2021).
Bank loans- This one is one of the best option for entrepreneurs that enable them to start
their business more appropriately and enable to provide better support to them with effective
help. It can also help start-up entrepreneurs that can enable them to get better and effective
response which are effective to perform well and help them to get funds that can enable them to
perform the business in better way. It can allow to perform the business activity in better way. It
also has some positive and negative aspect to get bank loan on the business.

Strength- It help to raise finance or the business and allow to perform well in the business. It
helps to spend money on the business operation that can allow to perform well in the business.
Weakness- This method of raising fund is not flexible in nature and government is capable
of changing the fixed interest rate (Megersa, 2020).
QUESTION 2
Different sectors which operate in UK economy along with differences and values to UK
economy
There are some of the categorisation in which all the business exists. Here, business offer
their service or product to people to earn profit. Here, business get generally engaged in the input
or output which can help to add some value to their product or services during manufacturing or
production. There is different sector which play a crucial role in the UK economy which are
operated by enterprises. They offer their products or service to people as final products. There
are three sectors within UK which affect country economy that are going to be discussed further.
Primary sector- This is the sector which are generally engaged in providing some raw
material to people that are effective and may lead to create better and effective response to the
business organisation to perform their production. Recently, due to advancement in the
technology, it leads to create better impact which is associated with reducing the number of
people in the sector and have high decline in the sector (He and et. al., 2020).
Secondary sector- This is the sector which is engaged in manufacturing or goods
production that can include different service along with distribution of final goods. These sector
are involved in the collecting the raw material and use those for production of finished goods
which they offer to their customer and clients. Due to enhancement in the technology, it leads to
reduce the production cost and help to get better and effective response towards the business.
These sector are affected due to advancement in the technology that help to improve the
production with reducing the number of man power due to more than sufficient employees.
Tertiary sector- It these are the service sector which involves intangible service which
may include finance, retail, leisure, hospitality, transportation along with other services. Due to
increase in the labour productivity, it leads to create high growth in the business that allow
people to have high purchasing power to them and contribute in increase the UK economy. It

also provided high opportunity to earn and enable to provide better manpower to the service
sector for their growth and success (Liu and et. al., 2018).
Basic Primary Secondary Tertiary
Meaning Include raw material
extraction.
Engaged in converting
raw material to final
products.
Include service like
hospitality, retail and
others.
Working Unorganised sector
that include traditional
work techniques.
Organised sector uses
more reliable
production methods.
Organised sector uses
modern day logistics
for business function.
Value in UK economy
United Kingdom is one of the largest economy within world due to high expenditure on their
lifestyle. These are the sector which highly contribute in the UK economy which may include
manufacturing, construction along with tourism sector. This can highly contribute in the gross
domestic product which consist different industries like entertainment, finance, retail or many
more. Tertiary sector of UK has been observed as providing one third of the economy to the UK
whereas, primacy contributes about only about 0.61% and secondary contributes about less than
17.41% with the UK GDP (Hertwich and Wood, 2018).
Workforce contribution within UK also include the sector which was about 1.01% within
the primary sector, 18% within manufacturing sector whereas about 81% in service sector. This
can represent that tertiary sector is highly involved in the higher contribution to the UK economy
and help in to add more value to GDP within UK.
So, it can say that tertiary sector provides high value to the UK economy then secondary
sector and then primary sector.
QUESTION 3
Identifying Human resource policies along with its importance within modern workplace
Human resource management play an important role in the business organisation that are
involved in managing employees effectively. HR policy include written documentation which
includes roles and responsibilities for both employees and employers. To protect the rights of
people, there are different human resource policies are made within the organisation that include

laws and legislation (Payne and et. al., 2019). It is also necessary to communicate with
employees that can enable to provide better response to every individual that are associated with
identifying and fulfilling employee’s expectations for the employee retention and smooth
functioning of organisation. There are some of the HR policies which are going to be discussed
further.
Equality along with diversity policy- It is essential for every organisation to include such
policy in their organisation that can help to provide equality to every employees and help in
performing and promoting diversity within the organisation. This can also enable organisation to
perform well and enable those to promote diversity and inclusion of different culture in the
organisation without creating any type of discrimination on any basis. Here, Equality Act 2010
implies that there should not any type of discrimination on workplace and every should provide
equal opportunity to perform any individual work (Martin and et. al., 2018). This can enable
human resource management to effectively implement that policy to establish better working
environment to every individual. This can help to perform well and allow organisation to provide
equal opportunity to every individual that can enable and help to perform well and provide
proper and equal training opportunity, development or promotion to every employee. Such type
of policy can be effective for every individual in business organisation that can also allow to
provide better opportunity to the business organisation. Organisational policy has the aim to
perform well and make better compliance with national law within workplace. Workplace should
perform well and help in getting better opportunity for every individual for positive environment
that should be create at the workplace. It also helps to motivate every employee to get motivated
and provide equal opportunity to them at the workplace (Tepayakul and Rinthaisong, 2018). This
motivation can be helpful for the business organisation to perform well and allow to improve
their performance in better way.
Health and safety- Within every organisation, there is need to ensure about taking care of
better and effective care that can allow to provide safety to every employee, employer and other
staff manner and their customer. This can help to ensure that there should not be any type of
harm to any individual which are associated with taking care of every individual that may
influence employees to work effectively without any second thinking. There is need to ensure
about health and safety at workplace Act which provide proper protection to every individual
that are associated with provide support to perform their duty and allow to maintain their

wellbeing. It is also need to ensure about employee’s health and their safety which can enable
employees to stay in their organisation and work effectively. It can help to perform well and
enable organisation to enhance their productivity and profitability (Gill, 2019).
CONCLUSION
From the above discussion, it can be concluded that there is various business organisation
which are having distinct legal status. these can lead to produce better profit for the business
organisation that can enable business organisation to earn profit which also include sometimes
for the society welfare. There is different business organisation like public, private, voluntary
along with charitable which have their strength and weaknesses. There is also discussion about
different source of funds within the business start-ups that may include bank loans or venture
capitals and have contribution to the UK economy. There is also discussion about the HR policy
which are required within workplace.

REFERENCES
Books and Journals
Acquah, A., 2021. Higher education finance between Ghana and the United States. Current
Issues in Comparative Education, 23(1).
Bai, C.A., Cordeiro, J. and Sarkis, J., 2020. Blockchain technology: Business, strategy, the
environment, and sustainability. Business Strategy and the Environment, 29(1), pp.321-
322.
Gill, M.J., 2019. The significance of suffering in organizations: Understanding variation in
workers’ responses to multiple modes of control. Academy of Management
Review, 44(2), pp.377-404.
He, P., Sun, Y., Zhang, Y. and Li, T., 2020. COVID–19’s impact on stock prices across different
sectors—An event study based on the Chinese stock market. Emerging Markets Finance
and Trade, 56(10), pp.2198-2212.
Hertwich, E.G. and Wood, R., 2018. The growing importance of scope 3 greenhouse gas
emissions from industry. Environmental Research Letters, 13(10), p.104013.
Lee, N. and Gonzalez, M.C., 2022. Stuck Near Ten Billion: Public-Private Infrastructure Finance
in Sub-Saharan Africa. CGD Policy Paper (Center for Global Development, February 9,
2022), https://www. cgdev. org/publication/stuck-near-ten-billion-public-private-
infrastructure-finance-sub-saharan-africa.
Lianos, I., Hacker, P., Eich, S. and Dimitropoulos, G. eds., 2019. Regulating blockchain: techno-
social and legal challenges. Oxford University Press.
Liu, L., Huang, C.Z., Huang, G., Baetz, B. and Pittendrigh, S.M., 2018. How a carbon tax will
affect an emission-intensive economy: A case study of the Province of Saskatchewan,
Canada. Energy, 159, pp.817-826.
Martin, A., Woods, M. and Dawkins, S., 2018. How managers experience situations involving
employee mental ill-health. International Journal of Workplace Health Management.
Megersa, K., 2020. Improving SMEs’ access to finance through capital markets and innovative
financing instruments: some evidence from developing countries.
Payne, J., McKeown, P. and Jones, M.D., 2019. A circular economy approach to plastic
waste. Polymer Degradation and Stability, 165, pp.170-181.
Saridakis, G., Idris, B., Hansen, J.M. and Dana, L.P., 2019. SMEs' internationalisation: When
does innovation matter?. Journal of Business Research, 96, pp.250-263.
Tepayakul, R. and Rinthaisong, I., 2018. Job Satisfaction and Employee Engagement among
Human Resources Staff of Thai Private Higher Education Institutions. International
Journal of Behavioral Science, 13(2).
Włodarczyk, B., Szturo, M., Ionescu, G., Firoiu, D., Pirvu, R. and Badircea, R., 2018. The
impact of credit availability on small and medium companies. Entrepreneurship and
sustainability issues, 5(3), pp.565-580.