Structure of Business

The report is in the context of start-up business named Finer Threads which is based out of London, UK. The report delivers different business sectors that contribute to the economy of UK, legal statuses of the business, the financial resources required by the start-up business that helps to meet the financial requirements of the business and the human resource policy that how the business operates in the most ethical manner in addition to that effectively manages the workforce of the organisation.

Structure of Business

EXECUTIVE SUMMARY
The report is in the context of start-up business named Finer Threads which is based out
of London, UK. The report delivers different business sectors that contribute to the economy of
UK, legal statuses of the business, the financial resources required by the start-up business that
helps to meet the financial requirements of the business and the human resource policy that how
the business operates in the most ethical manner in addition to that effectively manages the
workforce of the organisation.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Discuss different legal statuses of businesses that your business in UK with strengths and
weaknesses of these legal statuses...............................................................................................4
Determine the strengths and weaknesses of THREE sources of finance available to the
selected business start-up.............................................................................................................5
Determine the business sectors in the UK economy in which a business can operate and state
the differences between the three sectors?...................................................................................8
Determine the human resource policies and their importance in the workplace.........................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The different resources required to start up a new business opportunity, these resources
include finances, people, legal documentation, innovative ideas, business plan and others which
are crucial for the starting a new business. An entrepreneur must transfer the innovative ideas
into a new business opportunity, where in the business ideas Must be beneficial to both the
organisation and the market. The business objectives must satisfy the market demand and trends
in addition to that the business must be capable of sufficient funds in order to expand the
business and meet the financial requirements. This report covers, the start the business of “Finer
Threads” which is situated in London, UK, it is a private business. With the main purpose of
delivering fashionable clothes by using organic and hundred percent natural products without
using any low quality stitching and fabric quality. The association delivers variety of clothes to
men, women, kids. By taking Finer Threads as a chosen business startup, this report reflects
investigation of legal business structures, evaluation of different financial sources with its
strengths and weaknesses to the business, different business sectors in UK economy, the human
resource policies adopted by the business and how it benefits the organisation (AJAGBE and
et.al., 2016 ).
MAIN BODY
Discuss different legal statuses of businesses that your business in UK with strengths and
weaknesses of these legal statuses
Public Limited Company Private Limited Company Registered Charity
Public limited company Are
determined by businesses
listed under the London stock
exchange. There are
numerous number of public
limited companies in UK
where in more than 90%
company is a public limited.
Private limited company are
defined by simply The
businesses which cannot offer
shares to the public for
raising Capital, the business
has legal entity which is
separate from its owners apart
from that all the personal
Registered charity are the
businesses which operated for
the sole purpose of delivering
for social services and
enhancing the social
development of the country.
The major benefits of
registered charity are that

The major benefits of public
limited company are that the
convenient manner of raising
the capital where in these
businesses can raise capital
by offering shares to the
public, there are different
number of shareholders that
helps the business to reduce
the financial burden,
perpetual business existence.
The drawbacks of public
limited company is that due
to large number of
shareholders the owner is
held liable to these
shareholders and the owner
might lose control over the
business as the control gets
distributed in the hands of the
shareholders (Berger,
Cerqueiro and Penas, 2015).
transactions of the owner or
also separate, the profit has
been divided to the
shareholders which are also
called as dividends, the owner
can only draw funds from the
business for business
purpose. The benefits of
private limited company are
that the owners have full
control over the business
activities with the primary
purpose of profit maximize,
the financial burden of the
business gets distributed
among different shareholders.
The drawbacks of the private
limited company is that they
have to comply with certain
restrictions in UK while
raising capital, The owner is
liable for business solvency
and failure.
they have tax relief wherein
they don’t have to pay huge
taxes for business
transactions and operations,
they can get easy financial
solutions by funding from
private and public investors,
brand identity in the market
place by earning the trust of
the common public. The
major drawbacks of the
registered charity is that the
business cannot raise the
capital from equity share,
these businesses must comply
with certain restrictions
framed by the government of
UK for carrying the business
operations (Chauhan, Dey
and Jha, 2016).
Determine the strengths and weaknesses of THREE sources of finance available to the selected
business start-up.
There are different financial solutions taken by the Finer Threads in order to meet the
financial requirements of the business. These include short-term, medium-term and long-term
financial sources wherein Finer Threads takes the financial solutions from both public and
private sources.

Long-term financial sources
Loans from financial institutions
In UK there are different financial institutions in order to deliver financial solutions to different
organizations. Finer Threads takes help from different financial institutions such as banks in UK
in order to meet the long-term requirements of the business.
Strength: the major strength of these financial institutions are that The financial services are even
provided by these financial institutions Even without any mortgage or security.
Weakness: it adds up huge cost to the business.
Government grants
The government of UK delivers business support and financial solutions to different small and
medium businesses in order to support the growth and accomplish economic development in the
country. Finer Threads takes financial help from the governmental grants by rightly determining
the venture, cost incurred, financial statements of the business to the government and
highlighting the financial requirements, the business gets easy access to the financial Solutions
that helps to meet the long-term requirements of the business (Drobetz, Schilling and Schröder,
2015).
Strengths: These are the most reliable financial sources for the businesses.
Weaknesses: The documentation process is very difficult, as the business venture must convince
and big city bill by the government to deliver further financial solutions.
Retained earnings
Detained earnings are that reserve or that part of business profit which are kept aside from the
profit and Not distributed among the shareholders these are also called as undistributed profit.
Finer Threads Maintains retained earnings from the profit earned to meet the long-term
requirements of the business.
Strength: These are the most preferable and desirable way of meeting the financial requirements
which does not include any cost or maintenance security (Horner and et.al., 2015).
Weakness: it reduces the profitability margin.

Medium-term sources of finance
Borrowings from bank
Borrowings from banks includes taking loans for a time frame of 3 to 7 years, in order to meet
the medium-term business requirements. Finer Threads take the help from different banks
available in London and other parts to meet the medium term financial requirements.
Strength: businesses can meet the financial requirements in easy and convenient manner.
Weaknesses: These are the expensive sources as interest adds up to the loan amount.
Lease financing
Lease financing a defined by acquiring the fixtures sets at lease and meeting the medium term
financial requirements. Finer Threads takes land, other infrastructures of the business from the
lessor in order to Satisfy the Fix assets requirement (Khan, Rasli and Qureshi, 2017).
Strength: businesses does not have to spend unnecessary funds for acquiring the fixed assets.
Weaknesses: The businesses are held liable but are not the real owners after the transfer of the
property.
Short-term sources of finance
Bank credit
Finer Threads meet the financial requirements by taking loans from banks for less than or equal
to a year in order to meet the working capital requirement of the business.
Strengths: easiest way to meet the short-term requirements.
Weaknesses: increases the short-term liability.
Loan from director
Finer Threads owner renders funds to the business activities in order to meet the short-term
financial requirements, these are the most effective sources of finance as it does not incur any
cost or security (Lionais, 2016).
Strengths: It helps in meeting the short-term business finances.

Weaknesses: increases the financial liability of the business.
Determine the business sectors in the UK economy in which a business can operate and state the
differences between the three sectors?
There are mainly three different sectors in the U.K.’s economy, where in the businesses
are been divided into These sectors in order to carry the business operations. These sectors
separately and use revenue and contribution of it’s in the economy of UK. These sectors are
primary, secondary, tertiary. Wherein primary sector businesses are involved in business
activities for supplying raw materials, the secondary businesses are involved in business
activities for manufacturing, the tertiary business sectors are involved for Rendering services to
the customers. These different business sectors help the country to enhance the distribution
channel, comic development, creation of new job opportunities, increasing purchasing power and
employability and other different benefits and development of the country’s economy (Masanja,
2018).
Primary sector businesses involve operating in acquiring raw materials such as wood, food grains
and so on and supplying it to other manufacturers. Primary sector businesses play an important
role in order to acquire the raw materials for carrying different business activities, where in all
the businesses and consumers are directly or indirectly dependent upon the primary business
sector. In this manner these primary sector businesses earns revenue from the raw materials. The
example of primary sector businesses includes farming, mining and others.
Secondary sector businesses include those businesses which are operated for the sole purpose of
manufacturing and Production of the output. These businesses earn revenue by acquiring raw
materials from the primary businesses and using them in manufacturing processes for
transferring the raw materials into final output, these businesses further sells these final output to
other businesses or to the direct customers in order to generate profit. The example for secondary
sector businesses can be manufacturing companies such as car manufacturers, food
manufacturers and other manufacturers in UK. One such example is of a car manufacturer
company named Bentley which is a British manufacturer of car based out of England, UK. The
business was founded by H.M. Bentley and W.O. Bentley in 1919. Today it is one of the biggest
car manufacturers of luxury cars in the international marketplace (Olson and et.al., 2018).

Tertiary sector businesses are those which are operated for the sole purpose of delivering
services to the customers. These businesses and revenue by delivering their services to the end
customers. The major profitability and growth depends on the type and quality of the services
delivered by these businesses. Examples for the tertiary business sector can be business as
delivering food services, clothing, banking services, transportation, telecom services and other
related services. One such an example of tertiary business sector is Marks & Spencer which is a
British global organisation founded in the year 1884 in London, United Kingdom. The founders
of the business are Michael Marks and Thomas Spencer. The business delivers variety of
services to its customers such as clothing, banking services, food services, flowers and gifts to its
international customers.
Finer Threads is it tertiary sector business as it delivers food services to the customers. The main
motive of the organisation is to deliver quality service to the customers by using hundred percent
natural and organic products. The company wants to deliver value to the target customers by
satisfying high fashion statements in the marketplace. The USP of the business is to deliver
products at affordable prices by using hundred percent organic cotton and quality fabric. The
association delivers quality clothing services in order to earn reliability of its customers and
satisfy the profitability margin (Sund and et.al., 2016).
Determine the human resource policies and their importance in the workplace
The human resource policies play an important role as it determines the overall
workforce management of any organisation these are policies which are implemented as per
organizational objective. Human resource manager implements these policies in order to
coordinate group efforts to accomplish the set of business goals. Do you mean resource manager
have to play a number of roles and responsibilities in order to rightly manage the functioning of
the business activities these involves retaining the existing employees and recruiting the new
employees, managing the current workforce in a way that benefits both employees and
organisation, to get the most productive and efficient efforts from the employees in the
workplace to enhance the business performance. Finer Threads Deploys human resource
manager in order to manage the workforce and carry the business objectives in our legal and
medical manner (Tyson, 2017). Some of the human resource policies implemented by the human
resource manager in the Finer Threads Associations are discussed below:

Health and safety policies: The human resource manager implements health and safety policies
in the organisation so that all the employees feel comfortable and satisfied with the working
environment. Health and safety policies important in order to maintain a positive working
environment for the employs so that the employees Does not feel any mental or physical pressure
and gives full attention to words the job assigned. In accordance to the legal norms framed by the
UK government, businesses must develop appropriate health and safety policy is in compliance
with the legal proceedings to protect them ploy from any uncertain events. It’s not only benefit
them ploy but also helps to build and strong brand image of the business in the market place
where people feel more reliable towards the organisation and all together improves the business
performances. Moreover, it becomes crucial to Implement these health and safety policies in the
organisation in order to comply with the legal norms laid by the government of UK. The human
resource manager implements policies by delivering a safe working environment which in walls
that if any employee in the workplace is found to Ham or harass other employees in the work
place the HR manager can take stringent actions against him/her or can even fire the particular
employee. Apart from the physical safety measures they Joe manager in the association also
implements privacy of data of the personal information from the day the Steelers. The HR
manager implements software such as firewall in order to maintain privacy of data loss of both
the business and the employs. The HR manager ensures that any physical infrastructure deployed
in the organisation does not harm employees in the workplace, in cases of accidents or any other
circumstances the association will take full responsibilities of delivering compensation to the
employees, other health and safety policies includes providing the facilities of insurance wherein
The employees can claim damages in case of uncertainties. Delivering job security in the
workplace is the most crucial aspect so that employees in the workplace feels comfortable and
satisfied with the job role (Waldner and et.al., 2015).
Equality and diversity policy: The human resource manager implements policies of equality
and diversity in order to respect and treat each and every working staff of the organisation with
utmost dignity. The HR manager in the association also delivers non-financial benefits to the
employees such as accommodation, food services, clean and hygienic environment so that then
ploys feels comfortable in the working environment. The financial benefits offered by the
association also includes Incentives and appraisals in order to motivate the employees by giving
them recognition and professional growth opportunities in the workplace (Walther, 2015). Apart

from that equality and diversity policies also helps the organisation in order to retain the
employees and reduce employee attrition, as it helps them ploys to feel satisfied with the job and
such employees stay loyal and deliver better productivity to the organisation. Equality and
diversity policies play an important role not only legally but also reflects the ethical business
image, where in the businesses must deliver equal rights in the porch unity is to each employs
and disqualify any discrimination and unfair means against the employs. As per the legal norms
laid by the government of UK which States to deliver equal rights in an opportunity is to all the
employs in and workplace such as delivering minimum wages and salary is, delivering employee
rights and others where in all the businesses operating in UK must comply with these legal
norms. The human resource manager in Finer Threads Association, delivers fair remuneration
and other financial and non-financial benefits to the employs at the workplace. The HR manager
renders equal opportunities without any bias decisions and unfair means, where in the manager
takes stringent action to words any discrimination in the workplace. The HR manager gives
equal status and respect to them ploys belonging to different backgrounds, culture and social
believes. It becomes crucial to comply with equality and diversity policy in order to promote and
positive and ethical working environment. The HR manager also avoid Any such instances of
biasness or favour to men and women instead promoting equal opportunities in the workplace
irrespective of their background, gender, age, job profile or status. Equality and diversity policy
is in the organisation also helps to conduct business operations with utmost transfer. The HR
manager delivers fair wages and salaries to all the employs as per their job profile and work
performed by each individuals. That your manager implement policies by giving paternity and
maternity leaves and other important leave benefits to the employees in the workplace (Zhu and
et.al., 2015).
CONCLUSION
The above report clearly states different business sectors in the U.K.’s economy and their
contribution. The legal statuses of the business determine the strength and weaknesses of public
limited, private limited and registered charity. In order to start up with the business the business
has to comply with certain legal proceedings and required resources to implement an effective
business plan. The business must implement effective human resource policies in order to run the
business operations and manage the workforce performance in the most ethical and legal manner.

Most importantly the financial resources required by the business that helps a business to sustain
and achieve business growth, while identifying the financial sources it is important that it incurs
less cost and meets all the financial requirements.

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