Structure of Business

Structure of Business

Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
Question 1..................................................................................................................................3
A- Various legal statuses of business with its strength and weakness.............................3
B- Three sources of finance with strength and weakness.................................................5
Question Two.............................................................................................................................8
Identify three sectors within the UK economy in which a business can operate...................8
Question 3..................................................................................................................................9
HR Policies and importance...................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

INTRODUCTION
Innovation and the resources are the technique by which the startup business idea
comes in the mind of the entrepreneur the turn into foremost new business startup. Related to
the corporate startup it needs to be e analysing the resources that must be involved in defining
legal business structure different human resource and various source of finance(Lee, 2019).
The entrepreneurs in the business is the one who is having the integrated set of skills and
abilities in order to form a new business start up. Monetary funding is the basic need of all
the business and side maintain their legal structure and evaluating the satisfactory policies
and demands so that they can identify the specific marketplace. This report will provide the
information on various business legal structure that are operated in the UK and their strength
and weakness adopted by the various business, related to the different monetary sources and
their source which is being used by the new business start up with their strength and
weakness. This is also identify the different human resource policies and their significance in
the workplace. NAIL SALON is the chosen business start up for this report that is offering
various services like nail beauty manicure pedicure to their customer. There are different
option in the nail salon which is been provided are silk or fiberglass wraps, acrylics, polish,
manicures and pedicures by which they can enhance the beauty of their customers.
MAIN BODY
Question 1
A- Various legal statuses of business with its strength and weakness
There are different legal structure which is being refused by the new startups business and
they are mainly divided into public limited company, limited company or registered charity.
These all business structure are explained as follows:
Public limited company Private Limited company Registered Charity
It is defined as the business
in which car company is
offering their service to the
general public within the
minimum share capital of
Limited liability company is
a combination of private
limited company and the
PLC. N private limited
company there is a
When a person or
association of persons is
proposed to be registered as
a limited company under
this act for charitable objects

€50,000 by which 95% of
the the private companies
are are public limited
company in the
UK(Morgeson, Brannick
and Levine, 2019).
The strength of such
organisations, raising fund
can be easy approch. Public
limited company is a
separate legal entity from
there owner and the
shareholders of the business.
The capital can be collected
from the acquisition of
various theories that
considered to be the
opportunities of the business
expansion and also by the
public deposits.
The weakness for the public
limited company is that
owner have no control over
the different businesses and
in consideration to
protecting their share
holders, the regulatory and
legal requirement can be
high and the requirement for
or financial resources is
higher in public limited
company that is 25% is paid
up.
minimum paid up share
capital that is being
prescribed and it just take
the rights to the transfer and
having limited number of
shareholders that would be
up to 200 where is the
shareholders do not have the
full control over their
business. The company e
profits are divided and
shared between their
shareholders in the form of
dividend.
The strength of the private
limited company that it is
the separate legal entity that
do not require minimum
capital. The fund can be e
raised from the different
investors and Ventures and
there is not so much
financial burden due to their
unlimited shareholders and
liability is been divided into
them as well.
The weakness of the private
limited company that they
cannot transfer their share
and cannot be issued to the
public. The shares cannot be
quoted in the stock exchange
and the owner of the
business is liable for their
and registered in the limited
company if central
government is satisfied with
the objects and intentions.
After that license is issued to
the person. The registered
company will be known as
charitable company.
The strength of the
charitable organization gets
huge relief from the taxes
and have public recognition
by earning the trust of the
society. The funding of the
capital is raised from
different sources having
charitable status.
The weakness of the
charitable organization is it
faces the restrictions to carry
out various activities and
required to comply with
regulatory requirements
framed by the UK
government. The capital
cannot be raised from equity
investments. The payment to
the trustee is for the supply
of the professional service is
prohibited unless the
constitution of charity and
charity commission
authorizes to pay with this
requires detail explanation