The Structure of Business

This assignment discusses the legal status of business organizations, strengths and weaknesses of sources of finance, and sectors in the UK economy. It also explores the importance of policies in the modern workplace.

The Structure of Business

Contents
Introduction.................................................................................................................................................3
Main body...................................................................................................................................................3
Question: One..........................................................................................................................................3
Construct a table in order to show the legal status of business organisations which can be adopted by
them with respect to their strength and weaknesses.............................................................................3
Identify and evaluate the strength and weaknesses of sources of finance which can be used by the
business startup in the United Kingdom..............................................................................................6
Question: Two.........................................................................................................................................8
Three sectors within the United Kingdom economy in which business can operate............................8
Difference between primary secondary and tertiary sectors.................................................................9
Question: Three.....................................................................................................................................10
Identify the two which are policies and also explain their importance in the modern workplace......10
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12

Introduction
Business is an enterprise where the entrepreneurs are engaged in order to conduct
commercial industrial or professional activities. These kinds of activities help them to generate
revenue from the competitive market. It is important for the entrepreneurs to organise their
efforts and activities so that they can provide their goods and services to the targeted customers
in order to achieve profitability from the marketplace. There is a wide range of business which
can be scaled from sole proprietorship to international cooperation (Movono and Dahles, 2017).
This assignment also discussed the several types of business organisations and their
strengths and weaknesses with respect to the legal status in the United Kingdom. There are
different sources of funds which can be adopted by the companies in order to start up their
business. Lastly, the policies of the Human Resource Department and their importance are also
discussed with respect to the modern workplace.
Main body
Question: One
Construct a table in order to show the legal status of business organisations which can be
adopted by them with respect to their strength and weaknesses
Base Meaning Strengths Weaknesses
Private business
organisations
The sole
proprietorship is the
one of the type of
private business
companies which can
be start-up by a single
entity. It is also
known as the sole
trader as it is the
Sole proprietorship is
the least expensive
business as the
individual person can
start the company.
There are less rules
and regulations which
are governed by the
government.
Small business
organisations are
facing the challenges
in order to raise the
funds and investment
so that they can grow
in the competitive
market. As it is very
difficult for the single

simplest form of
business with respect
to the Incorporation. It
does not create a
separate legal entity
from the owner (Chen
and Cheng, 2020).
The owner will be the
individual who will be
liable for all the
liabilities which are
entered within the
company. The sole
proprietorship that is
generally owned and
managed by the small
business organisation
and who wants to be
the self employed
people.
The owners of these
types of organisation
have 100% control
over the management
and funds. In these
types of companies
the shareholders and
board of directors are
not there in order to
manage the
operations.
person to raised funds
as the outsider in
whom theatres are not
allowed. This resulted
in the slow growth of
the organisation and
difficult for the owner
to achieve their
business objective
business objective
(Tsutsumi and Silva,
2018).
When the owner of
the types of
organisation is dyed it
is resulted in
dissolution of the
firm.
The owner of the
company will be label
in order to address
losses and other
liabilities with
incurred in the
company.
Public Company Public companies are
such companies in
which the general
public can help the
organisation in order
It is easy for these
types of organisation
and order to raise the
capital as the
company can issue the
It is difficult for the
steps of organisation
to protect the rights of
the shareholders As
for this they are

to raise their capital so
that the company can
have a smooth
functioning of their
operations. In these
types of organisations
the shares are
available in the open
market so that general
public can purchase
shares and become the
shareholder of the
company. This helps
in giving the
shareholders a right to
participate in the
decision making
process and have a
right to vote. The
general public can
easily transfer their
shares from one
person to another
(Daniels, Willis and
Ballard, 2019). The
public companies are
denoted as PLC after
the name such as
Sainsbury PLC.
prospectus to the
general public which
helps them to take
most obvious
advantage from the
competitive market in
order to raise their
capital. Generally
these types of
organisations are
listed in the
recognised Stock
Exchange.
These types of
Companies can easily
take the financial
opportunities in order
to expand their
business as they have
a potential source of
finance which can be
used by them while
satisfying the
requirements of their
targeted customers
and do an effective
manner.
required to develop
and follow such rules
and regulations which
are formed by an
authority as in case of
the private limited
companies the
government used to
develop less rules and
regulations.
These types of
companies are
required higher level
of transparency
because they are
required to provide
their information in
the public domain
which helps them to
raise the capital from
the public.
In these types of
organisations the
public limited
companies are much
harder to control as
the general public can
become the
shareholders who will
be the directors and
the directors are the

ultimately
accountable for the
operations this
resulted in difficulties
in order to give
directions to the
organisation and for
which the company
faces several disputes
while managing their
operations and
satisfying the
expectations of the
shareholders.
Identify and evaluate the strength and weaknesses of sources of finance which can be used
by the business startup in the United Kingdom
Bank loan:
When two organisations wants to raise their funds then they can take the loan from the
banks as it is the one who receives finance from the bank and promises to repay the principal
amount as well as the interest amount to the organisation from where they borrow the money
(Münchhausen and et. al., 2017). These types of loans are categorised under the secured loan as
the person who is taking the loan is promising by providing the secured assets to the bank and in
case the borrower defaults a doesn't repay the loan the bank can forfeiture that assets.
Strengths
 The bank used to allow one to repay as per their convenience but they are required to pay
the installments at regular basis and on a specified period of time.
 The bank also used to provide the customers and overdraft facilities where all the
creditors are deducted in go and the customers can also have a credit card with their
maximum limit which cannot be utilised in one go.

Weaknesses
 This is the lengthy process which the customers have to go under in order to take loan.
 The tank always used to take the collateral security of any assets before giving the credit
to the person.
 Loan approval rates for small business organisations and make it so much difficult for
them to take the loan from bank.
Crowdfunding
Crowdfunding is another type of source of funds which can be used by the startup
companies so that they can raise the capital from the general public. In this type of source of
funds the large number of individuals used to give financial help to the new business ventures in
competitive market so that they can have a smooth functioning (Shamim, Mumtaz and Ali,
2020). In this type of source of funds it is easy to accessible as it is area so the general people
with the help of social media and other platforms used to bring investors and entrepreneurs
together which can be used by the companies in order to raise their funds by expanding the pool
of investors.
Strengths
 It is the fastest mode for the small startups in order to raise the funds.
 This platform can also be used by organisation so that it can take feedback from the
customers and also take the expert advice which helps the company to improve their
functions so that they can achieve their goals in a better manner.
Weaknesses
 It is not the easiest process to go through as compared to the traditional ways.
 In this type of source of funds companies are required to build up my interest before
launching their projects in to the competitive market so that the people are attracted
towards the project and their idea which helps the company to easily raise their funds
(Martí-Ballester, 2019).
Venture capital
It is another type of source of funds which can be used by the companies and the small
business organisation while raising their capital. It is generally coming from well of investors
investment banks and other famous Institutions of finance with help the companies to expand

their business while providing the required capital. The venture capital is typically allocated to
the small organisation with exceptional growth potential so that the companies can take the
competitive advantage from the marketplace (Guerrero and Urbano, 2017). In this type of source
of funds investors plays a major role in the growth of opportunities as they are typically only
who open to accredited investors.
Strengths
 In this type of source of funds the venture capitalist are usually a point at the board of
startup companies as they play a major role in order to take the decisions of the
organisation. There in is to provide their guidance so that they can easily expand their
business.
 The venture capitalist used to provide and develop different Strategies and techniques
which can be used by the companies in order to achieve their business objective.
 The venture capitalists are the investors and the company has no obligation to repay the
amount to them.
Weakness
 The venture capitalist use to decide to redeem their investment within three to five years
as their primary aim is to achieve the capital gain from the Marketplace.
 Startup companies owner should first present a detailed business plan to the venture
capitalist so that they can analyse the plan and determine with respect to the points which
can be considered by them in order to invest their capital in such organisation. It can be
also says that it is the most lengthiest process as firstly the owners of such organisation
are required to develop a business plan and then further the capitalist used to analyse such
plans and then decide that it is beneficial for them to invest their money in such
organisation or not.
Question: Two
Three sectors within the United Kingdom economy in which business can operate
The economy of the United Kingdom is divided into three different business sectors
which can be used by the different entrepreneurs in order to provide their goods and services to
the ultimate consumers (Dello Russo, Mascia and Morandi, 2018). It can also says that these

sectors helps informing the chain of production which can be used by the entrepreneurs in order
to provide the customers with the finished goods and services.
 Primary Production: it is the most important production which involves such activities in
which entrepreneurs are engaged in order to acquire the raw materials. Is type of activity
entrepreneurs are used to acquire raw materials and provide it to the secondary
production so that for that they can manufacture and assemble it in order to provide the
finished goods to targeted people (Tripathy and Mangaraj, 2017). It is also known as
extractive production.
 Secondary Production: It is another activity in which the entrepreneur was used to
manufacture and assemble the raw materials in order to convert it into the finished goods
and services. For example: building houses and bridges.
 Tertiary Production: It is the type of production where the entrepreneurs are engaged in
commercial activities so that they can support the production and distribution process
which helps the primary and secondary production in order to provide the ultimate
question services to the targeted audience. For example: teaching, hospitality etc.
Difference between primary secondary and tertiary sectors
Primary sectors belongs to the agriculture and allied sector which are working in order to
develop the raw materials where is the secondary sectors are engaged in manufacturing and
industries which are working in manufacturing the products and services and the tertiary sectors
used to provide the finished goods to the ultimate users so that they can consume.
The primary sectors are working in providing the raw materials to the secondary sector
and the secondary sectors used to change the raw material into the finished goods and on the
other hand the tertiary sector is liable to provide the services to the both primary and secondary
sector (De Vos and Van der Heijden, 2017).
The primary sector uses the traditional techniques so that they can develop the raw
material and belongs to a unorganised manner where is secondary sectors are most reliable
method used by them so that they can provide the goods and services and are in organised
manner but on the other and the tertiary sectors uses modern-day Logistic methods while
operating their operations and they are much organised.

Question: Three
Identify the two which are policies and also explain their importance in the modern
workplace
Healthy and safety policy
It is the most important policy which must be adopted by every Human Resource
Department at that describes a course of actions which influences the working environment of an
organisation. This is used by the companies in order to take better decisions and guide the
actions with respect to the health and safety of the work force. It also helpful in order to analyse
the government and its importance within the organisation as there are several rules and
regulations formed by the authority which must be followed by the companies within their
working environment (Nyberg and et. al., 2018). These types of policies used by the companies
in order to develop of better working environment and also used by and motivating the
workforce as they have a positive and healthy environment to work and this resulted in the better
outcomes from them. It is important for companies to develop and safety policy so that the
workforce can satisfy their general duties and provide a safe workplace to the employees.
Importance
 These are the such policies which must be considered by every organisation at it helps
them to develop a positive Goodwill into the competitive market because of the gestures
that shows by the work force and attracts the new candidates to work in such an
organization (Falcomer and et. al., 2020). This also helps them to retain the present
employees for a longer period of time.
 The best part of these types of policies are used in order to create a strong workforce base
and this leads to easy and relaxed working environment within the organisation.
 These types of policies help the employees to increase their outcomes as they have a
luxury and the perks which are deserved by them (Cohen, 2017). It is treated as the best
way to create the health and safety policies as in this the companies to take care of their
employees which helps them in improving their working and also satisfying and
motivating the workforce.

Equality and Diversity policy
The diversity refers to the existence of several characteristics which belongs to different
groups of individuals. It is important for every human resource department in order to motivate
the employees to maintain the equality and diversity policy within the organization (Adamou,
2017). This helps them to provide better opportunities to the fresh candidates so that they can use
their skills and knowledge within the company which helps them to achieve better results. This is
also used by the department in order to encourage and motivate the employees who belong to
different with respect to their age, color, disability, family background and marital status. The
companies used to treat this as a Unique Identity of such employees and are not supposed to
differentiate them with respect to their unique identity.
Importance
 Respectful communications and corporations between the employees can be observed
within the organisation which is treated as beneficial for the company and its growth
(Shameem, 2018).
 The steps of policies help the team members to work together and participate in activities
which are conducted within the organisation in order to get the better outcomes.
 Diversity in equality helps the workforce to manage the balance between their work and
personal life so that they can enjoy both their lives together.
Conclusion
It is important for every startup or organisation to determine the strength and weaknesses
with respect to the legal status which is present in the United Kingdom as such can be concluded
from the above report that there are various sources of funds which can be used by the
companies in order to raise their capital so that they can have a smooth functioning. There are
three sectors within the economy which can be e used by the entrepreneurs in order to provide
their goods and services to the ultimate users as it plays an important role in order to develop
economic conditions of the state. Lastly, this assignment is being discussed about the human
resource policies and their importance with respect to developing a positive working
environment.

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