The Structure of Business: Legal Statuses, Finance Sources, and HR Policies

The structure of
business

Table of Contents
The structure of business.................................................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Various legal statuses of business with its strength and weakness..............................................3
Evaluate strength and weakness of finance source......................................................................6
Recognise three sector in UK in which business operates as well as difference of it along with
its value to economy....................................................................................................................7
HR policy with its importance.....................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The UK government is much concern with aggressive economic responses due the effect of
pandemic situation. As a result they support start up business idea as it will leads to contribute in
raising economy and GDP (Afzal and et.al., 2018). The chosen business start up idea in this
report is customised homemade jewellery. The report aims to answer following question such as
HR policy with its importance , Recognise three sector in UK in which business operates as well
as difference of it along with its value to economy, Evaluate strength and weakness of finance
source, Various legal statuses of business with its strength and weakness.
MAIN BODY
Various legal statuses of business with its strength and weakness
Legal statuses About, strength and weakness
Private limited company (LTD) Requirement –
 Appointment of One director that is
above age of 16 years.
 Company have to registered in office of
UK.
 Name of company must should comply
with regulation of government.
 One share should issued in period of
incorporation.
The private limited company is formed in fame
of legal entity as per its own right that is
separate from own in laws (Baker, 2021). The
ultimate benefit of using to execute this limited
company as it deliver limited liability to its

shareholder investment along with unpaid
shares they are own. When company is in
position of dissolved then personal assets of
shareholder cannot be exposed. As the limited
liability comes under more tax potential
benefit. It operate in most simplicity way and
become most favourable and popular business
structure in UK (Beynon-Davies, 2020). When
company gets incorporated by filling
information regarding history and current
appointment then it will become publically
available through house register. It will
discover level of transparency within limited
company through transferring business
advantage.
Public limited company (PLC) This is counter in parallel towards private
counterpart, The PLC came to exist in terms of
legal entities with its full optimum own right.
In context of members of liability are limited
with respect to its investment as it will deliver
more value to its shares (Bucheli, 2019).
Shares of private limited company in terms of
PLC treated as trading with respect of public
market in order to raise optimum finance. Here
are operating cost is likely high while running
PLC in comparison of private company. This
type of structure is most fitted to large form of
enterprise. They must issue share value approx
about 50000 before registered company as
PLC. As per legal requirement there must be at
least two appointed directors.