The Structure of Business

The Structure of Business

Contents
Introduction.................................................................................................................................................4
Main body...................................................................................................................................................4
Question: One..........................................................................................................................................4
Construct a table in order to show the legal status of businesses which can be adopted with respect to
their strength and weaknesses..............................................................................................................4
Identify and evaluate the strength and weaknesses of sources of finance which are available for the
business startup....................................................................................................................................9
Question: Two.......................................................................................................................................11
Three sectors within the United Kingdom economy which business can operate..............................11
Question: Three.....................................................................................................................................13
Identify the two HR policies and also explain their importance to the modern work place...............13
Conclusion.................................................................................................................................................16
References.................................................................................................................................................17

Introduction
Business is an organisation in which entrepreneurs are engaged in commercial, industrial
or professional activities. The entities can be engaged in order to generate profitability from the
competitive market and also there are non-profit organisations which are operate fully as a
charitable mission. It is the type of organised efforts and activities of individuals who used to
produce and sell their goods and services in order to earn revenue from it. The range of business
can be scaled from a sole proprietorship to the international cooperation (Zhu and et. al., 2019).
The report is being discussed about the various types of business organisation with respect to
their strength and weaknesses of their legal status in United Kingdom. Further, different sources
of funds which can be used by the organisation in order to start up their business are also
discussed. Lastly, the HR policies and their importance with respect to the modern workplace are
also discussed.
Main body
Question: One
Construct a table in order to show the legal status of businesses which can be adopted with
respect to their strength and weaknesses
Base Meaning Strengths Weaknesses
Private
(Sole
proprietorshi
p)
It is also known as
the individual
entrepreneurship sole
trader or simply
proprietorship. It is
the type of fennel an
incorporated entity
which is owned by
the individual. It is
the simplest legal
form of business
 It is the most
expensive
which helps the
owners to start
the business.
 The sole
proprietorship
address to a few
regulatory
requirements as
the government
 Small business
owners are required
funds and
investments so that
they can grow over
the period of time and
for this it is most
difficult for the sole
proprietor in order to
raise their capital as
they are not supposed

entity which is easily
to startup as it does
not create a separate
legal entity from the
owner. It can be also
says that the owner
concise with the
business entity only
as he will be the fully
liable for any of the
liabilities incurred
within the
organisation. It is
most famous among
the small businesses,
freelancers and other
self-employed
people.
does not make
any restrictions
with respect to
their work.
 The sole
proprietorships
owners have
100% control
over the
management
and operations
of the
organisation. As
they are not
required to
answer the
shareholders
board of
directors or any
other persons.
to raise the funds
from the outside
investors (Zucchella
and Previtali, 2019).
This can slow the
growth and prevent
owners from
achieving their
business goals into a
specified period of
time.
 The sole
proprietorship dies
with the owner as
there is no sense of
permanence with
respect to these types
of entities. The
owners cannot pass
their business to the
family members are
trusted other people.
 The sole
proprietorship have a
personal liability in
order to address the
losses which occurred
in the sole
trader(Mitchell and
Gronenborn, 2017).