Structure of Business

Structure of Business

Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
Question 1..................................................................................................................................3
A- Various legal statuses of business with its strength and weakness.............................3
B- Three sources of finance with strength and weakness.................................................5
Question Two.............................................................................................................................8
Identify three sectors within the UK economy in which a business can operate...................8
Question 3..................................................................................................................................9
HR Policies and importance...................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

INTRODUCTION
The startup business idea comes in the mind of the entrepreneur with innovative and
resources that turn into a foremost motive contributing new business startup. The
entrepreneur in the business is one who has the capability, skills and talent. Intended for
corporate startup it needs to recognizing the resources which involves defining the legal
business structures, the sources of finance, and different human resources. In which
categorizing the monetary necessities in directive to fund all the desirable business strategies,
segmenting the business into legal structures and executing the satisfactory policies in
demand to create the identity of the business in the marketplace (Adrodegari, F. and et.al.,
2017). This study provides comprehensive information on diverse business legal structure in
UK and with its strength and weaknesses of the legal structure adopted by the business, data
regarding different monetary sources of the business with its sources adopted by the business
startup having relevant strength and weakness and the three different sectors of the UK
economy and their differences. In study it has been also defined different human resources
policies and their importance in the workplace. The chosen business startup is NAIL SALON
which is a beauty salon offering several services like manicures, pedicures, and nail
enhancements to the customers. The varieties of options in the nail salon provided involve
acrylics, silk or fiberglass wraps, French manicures, polish, and pedicures to the UK
customers to enhance their beauty.
MAIN BODY
Question 1
A- Various legal statuses of business with its strength and weakness
The activities of business are alienated as per the nature of the legal statuses of
businesses. These are mainly separated into diverse business sectors such as public limited
company, Limited company and registered charity. The discussion is below-
Public limited company Private Limited company Registered Charity
Public limited company
(PLC) defines those
business in which company
shares is offered to the
general public and traded
The limited liability
company comprises the
private limited company and
the public limited company.
In the private limited
When a person or
association of persons is
proposed to be registered as
a limited company under
this act for charitable objects

freely with a minimum share
capital of £50,000 over
which 95% of the limited
companies in UK are public
limited companies.
The strength of the
companies is it is easy form
to raise the capital. The PLC
has the separate legal entity
from the owners and the
other shareholders of the
business. The capital can be
raised through public
deposits, acquisition by
offerings shares which leads
to the opportunities of the
expansion and growth.
The weakness for the public
limited company is the
owner lose the control over
different business. In
protecting the shareholder,
the legal and regulatory
requirements is high. The
initial financial commitment
is high in PLC in which 25%
is paid-up.
company, there is a
prescribed minimum paid-up
share capital restricting the
rights to transfer the shares
and having limited number
of shareholders up to 200
whereas the shareholders
does not have any control
over the business activities.
The company profits are
divided and distributed
between the shareholders in
the form of dividend
(Bashir, M.and et.al., 2019).
The advantage of the
private limited company is a
separate legal entity which
does nit require minimum
capital. The funds can be
raised from venture
capitalists or angel investors.
The financial burden is
reduced due to unlimited
shareholders and liability is
been divided into different
shareholders.
The weakness of the private
limited company restricts
the transfer ability of the
shares and prospects cannot
be issued to public. The
shares cannot be quoted in
stock exchange. The director
of the business is held liable
and registered in the limited
company if central
government is satisfied with
the objects and intentions.
After that license is issued to
the person. The registered
company will be known as
charitable company.
The strength of the
charitable organization gets
huge relief from the taxes
and have public recognition
by earning the trust of the
society. The funding of the
capital is raised from
different sources having
charitable status.
The weakness of the
charitable organization is it
faces the restrictions to carry
out various activities and
required to comply with
regulatory requirements
framed by the UK
government. The capital
cannot be raised from equity
investments. The payment to
the trustee is for the supply
of the professional service is
prohibited unless the
constitution of charity and
charity commission
authorizes to pay with this
requires detail explanation