The Structure of Business

THE STRUCTURE
OF BUSINESS

Table of Contents
INTRODUCTION.................................................................................................................................3
TASK....................................................................................................................................................3
FORMULATE A TABLE DEPICTING THE KINDS OF LEGAL STATUSES THAT CAN BE
ADOPTED BY THE STARTUP. HIGHLIGHT THEIR STRENGTHS AND WEAKNESSES.......3
IN ASPECT OF THE BUSINESS IDEA, IDENTIFY THREE SOURCES OF FINANCE THAT
CAN BE ADOPTED FOR THE STARTUP AND EVALUATE THEM ON THE BASIS OF THE
STRENGTHS AND WEAKNESSES...............................................................................................5
DETERMINE THE TYPES OF SECTORS IN ESSENCE OF THE UK ECONOMY WHERE
THE BUSINESSES CAN OPERATE. HIGHLIGHT THEIR SIGNIFICANCE...............................6
EXPLAIN THE VARIOUS HUMAN RESOURCE POLICIES THAT CAN BE APPLIED IN A
BUSINESS ORGANIZATION. ALSO EXPLAIN ITS IMPORTANCE IN THE WORK PLACE..8
CONCLUSION.....................................................................................................................................9
REFERENCES....................................................................................................................................11

INTRODUCTION
The structure of business is referred to the way the business is organized. A business
structure portrays the legal structure of an organization. The business structure depicts the
owner of the organization, the profit sharing ratio of the organization along with the task
sharing among the managers. This information is necessary regarding the formalities related
to tax and liability as they are dependent upon the structure of the business that an
organization follows. Each business structure follows varied level of tax procedures and has
different responsibilities in terms of unethical behavior or a lawsuit (Acuña-Carvajal and
et.al, 2019).
The business structure is something very important that need to be determined in
order to establish a business. The study revolves around the idea of developing a business
startup which is being approached for a loan in order to meet with the financial needs of the
organization. The study involves various details that need to be considered in order to
establish the business (Ali and Anwar, 2021).
TASK
FORMULATE A TABLE DEPICTING THE KINDS OF LEGAL STATUSES THAT CAN
BE ADOPTED BY THE STARTUP. HIGHLIGHT THEIR STRENGTHS AND
WEAKNESSES.
Whenever a plan to startup arises, the first thing that needs to be decided is the
structure of the business organization or the startup. There are various types of legal statuses
that can be adopted by a startup. Each legal status has its own significance and procedure of
being registered. The various legal statuses that can be adopted by an organization or a
startup are discussed below-

Sole Proprietorship- Sole proprietorship is a very common type of business structure for the
small startups. This kind of business structure is usually owned and operated by a single
person. The single person holds the authority to take decisions and enjoy the profits. The
owner is the sole authority of bearing risks and enjoying the profits along with the execution.
The sole proprietorship can be applied and be suitable for various home based business,
freelancers or the contract based. The things to be considered before opting for this structure
is the funds and the liability one possess (Baker, Kumar, and Pandey, 2021). The various
strengths and weaknesses for sole proprietorship business is discussed below-
Strengths-
 Owner is the only person to receive all the gains and profits.
 Owner is the only authority to take decisions.
 Owner is the only person who has control over the business.
 The tax is paid only upon the profits.
 It is easy to operate and is cost friendly form of structure.
Weaknesses-
 This structure follows unlimited liability which means that if the owner fails to repay
debts in that case his personal property can be seized.
 Falls short of funds.
 No independent status of the organization (Cao, and Duan, 2017).
Partnership- Partnership form of business structure is where two or more people collaborate
on mutual understanding to share the profits and losses of the business organization along
with the risk sharing. This form of structure requires a legal agreement among the partners
that is also known as a partnership deed. The partnership deed consists of the regulations
regarding profit sharing, capital, admission or retirement of partners and the steps regardingBusiness
structure
Business
structureSole
proprietorship
Sole
proprietorshipPartnership PartnershipLimited liability
corporation Limited liability
corporation