Structure of Business

Structure of Business

Table of Contents
INTRODUCTION...........................................................................................................................1
QUESTION ONE............................................................................................................................1
Constructing a table for showing various legal statuses or business frameworks.......................1
Strengths and weaknesses that are required to consider while planning to establish the business
.....................................................................................................................................................3
Identification of three sources of finance available for business start-ups..................................4
QUESTION TWO...........................................................................................................................6
Identification of three sectors in UK wherein business can operate............................................6
QUESTION THREE.......................................................................................................................8
Identification of two HR policies and their importance to modern workplace...........................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Business is defined to a commercial activity wherein continuous production or buying and
selling commodities are undertaken by an individual with the aim of earning livelihood along
with acquiring wealth via satisfying human needs. Murphy (2017)says that while establishing a
new business, there are various objectives in mind of an entrepreneur including earning profit,
gaining customers, making contributing to society, creating employment opportunities etc.
structure of business states who owns the entity, ways in which profits are distributed, who is
accountable to whom and many other things. To enhance knowledge about structure of business,
Sylvan Carpet Fashion is selected which is one of viable business start-up in online retail
industry of UK. The start-up business is a retailer of beds as well as floor covering products. The
business idea is a effective option available with entrepreneur having minimal investment capital
and potentials for meeting demand among customers for decorating the floors of houses, offices
etc. The report covers various business sectors which contribute in economy, various legal
frameworks in context to business start-ups and finance generating alternatives. It also identifies
importance of human resource policies in the modern business.
QUESTION ONE
Constructing a table for showing various legal statuses or business frameworks
It is said by Storey (2016) that business is an entrepreneurial idea for producing and selling
products for profit making purpose. It is also crucial to determine legal structure or framework of
business for adhering requirements related to registration, obtain licence etc. It is seen that online
retail industry in UK is among faster growing segment addition to provide exciting opportunities
to talented young entrepreneurs for starting their business. Along with this, entrepreneurs are
also aware about existing opportunities that are created via rapid technological developments.
To start an online retail business such as Sylvan Carpet Fashion is effective decision of the
entrepreneur. Sylvan Carpet Fashion is an online retailer of floor and bed covering products. Its
commitment is to deliver excellent services to customer and makes things easier for them to
transforms their places. Its product range includes carpets for vinyl flooring, wood flooring etc.
Moreover, it also have stock list of headboards, beds addition to mattresses with wide design
variety as per budgets and styles of customers. Following is the table that shows variants of
business frameworks or legal statuses that can be adopted by Sylvan Carpet Fashion:
1

Frameworks of
businesses
PLC LTD CIC Registered
Charity
Meaning PLC is public
limited company
whose shares are
publicly traded
through stock
exchanges and
there liability is
limited (Roberts,
2018).
LTD is Limited
company whose
shareholder’s
liability is
limited for the
originally
invested capital.
The businesses
which features
limited liability
are type of LTD.
CIC is
Community
Interest Company
which exist for
benefiting society
with the view of
initiating social
purposes despite
of making profits.
The businesses
which establish
and operate
activities for
charitable purposes
are said to
registered charity.
Objectives Businesses that
adopt PLC
framework have
objective of
raising
maximum
capital through
shares.
The businesses
that adopts LTD
framework have
objective of
generating
profits from the
operations of
business.
The objective of
business that
adopts CIC
structure is to use
profit and
services to benefit
the community
and using them
for public
commodities.
The objectives of
registered charity
business are for
philanthropy along
with social well
being (Graddy-
Reed, 2018).
Commencemen
t of business
In PLC,
business has to
obtain
Certificate of
commencement
of business
along with
Certificate of
In LTD,
business only
has to obtain
Certificate of
Incorporation
with the hope of
commencing
business in real
Businesses that
are planning to
adopt CIC
structure have to
obtain
Certification of
registration and
certification of
Business planning
to commence
business under
Registered
charitable
framework is
required to obtain
Certificate of
2