Structure of Business: Legal Statuses, Sectors, and HR Policies

Structure of
business

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK 1............................................................................................................................................3
Various legal statuses of business that new business may adopt along with the strengths and
Weaknesses and strengths of these legal statuses for the business..............................................3
TASK 2............................................................................................................................................8
Three sectors in UK economy in which a business can easily operate and differences between
them. Description of value of three sectors to the UK economy.................................................8
TASK 3..........................................................................................................................................10
Two policies related to human resource management and comment on their importance to
modern workplace (Health and safety policies and equality and diversity policies).................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business plays an important role in development of whole economy and also generates
employment opportunities in the economy (Baker, 2021). Recently the global pandemic Covid-
19 has impacted various operations and functions of business which were present in the economy
of UK. Covid-19 has lead to shutdown of several business organisations and also reduced
profitability of different enterprises. The government of United Kingdom is trying hard to
overcome through the situation which is created by Covid-19 and is also coming up with new
plans for business start ups. In this report major legal statuses which a business can adopt from
marketplace are explained in a precise manner. This report also contains a brief analysis of three
sectors of UK economy in which a new business can easily operate. This report it can be also
concluded that human resource management related policies are effective in development of
modern workplace. In this report example of a newly established business ABC consultancy
services is taken into consideration. The company mainly provides consultancy solutions to
major companies at the marketplace and is situated in the heart of London city.
MAIN BODY
TASK 1
Various legal statuses of business that new business may adopt along with the strengths and
Weaknesses and strengths of these legal statuses for the business
It is very much important for a person to analyse all the strengths and weaknesses of different
businesses in order to develop effective approach at the marketplace (Carillo, 2017). Due to the
effect caused by Covid-19 pandemic on business environment it is compulsory to determine all
the factors related to different start-ups. The following are several strengths and weaknesses of
different companies which are mentioned in this table:
Legal status
defined
Strengths Weakness
Sole trader  The business in
sole trader is very
easy to establish in
the business
 Sole trader has unlimited
liability attached to the
business and owner is
solely responsible for profit

environment.
 Several and
important business
decisions in sole
trader is taken by
owner of the
business.
 Sole trader has
complete control
over all the
activities and
functions of a
business (Díez-
Martín, 2020).
 Profit sharing is
limited in this type
of business and
owner takes all
profit.
and loss.
 In this art of business
owner is sometimes unable
to manage funds for
expansion of the business.
 The work time in sole
trader is high as compared
to other types of
businesses.
 It is hard for a sole trader
to compete with a large
firm at the marketplace or
with a multinational
company.
 There is a lack of proper
skills in a sole trader to
manage a business
organisation.
Partnership  Partnership firm is
easy to set up at
marketplace in a
short span of time.
 In partnership
there is a huge
availability of
funds due to
investment done
by other partners.
 The main
advantage of
 The major disadvantage of
partnership is that it creates
unlimited liability for
different partners.
 The sharing of profit is
done between two or more
people who lead to
minimise the revenue.
 The potential for different
disagreements is there in
major operations and
functions of partnership.