Structure of Business: Legal Statuses, Sources of Finance, Sectors in UK Economy, and HR Policies

This article discusses the different legal structures of businesses, sources of finance available for startups, and the three sectors operating in the UK economy. It also identifies two HR policies that are important in the modern workplace. The article provides an evaluation of the strengths and weaknesses of each legal status and source of finance. The subject matter is relevant for students studying business and management courses.

Structure of Business

Table of Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
QUESTION 1..............................................................................................................................................3
Types of frameworks or legal statuses of the business together with its strength and weakness..............3
Evaluation of various sources of finance that is available for business start- up together with its pros &
cons.........................................................................................................................................................8
QUESTION 2............................................................................................................................................10
Three different types of sectors which operate within the UK economy & the difference between all.
Comment on their value in UK economy..............................................................................................10
QUESTION 3............................................................................................................................................12
Identify two HR policies & its importance in modern workplace.........................................................12
CONCLUSION.........................................................................................................................................14
REFERENCE............................................................................................................................................15

INTRODUCTION
Business is act like a legal entity which performs all the operation separately which mainly
engages with commercial, professional & also industrial activities. Business requires specific
ideas & plans to operate the buying, selling & delivering activities. Every business contains
specific purpose like profit maximization & wealth maximization for this business adopt an
appropriate ownership structure. To accomplish more positive responses, it is mandatory for the
business is to evaluate the internal & external business environment (Adrodegari and et.al.,
2017). Businesses are following various legal structures so that entrepreneurs can follow all the
guidelines appropriately. This project will discuss about different kind of various frameworks &
determine the strengths & weaknesses of legal statuses. This project also discuss about various
sources of finance which are available for the startups. Three types of sectors also discuss which
mainly operate which the UK economy. Furthermore, this project also determines the two HR
policies which are beneficial for the modern workplace.
MAIN BODY
QUESTION 1
Types of frameworks or legal statuses of the business together with its strength and weakness.
Business is work like a separate legal structure that is especially come up with the new
business with the motive of long term development at the marketplace nationally or
internationally. Through business activities, all the demand can be fulfilled by the specific
objectives & strategies. Some appropriate types of businesses are considering specific legal
status. The description of variety of businesses practices discussed with their strengths &
weaknesses.
Types of
businesses
Legal statuses of
businesses
Strength Weakness
Public
Organizations -
Basically public businesses
follow three kind of legal
This business
considered the
Public organizations
affected by the lots

This kind of
business mainly
addresses all the
business
operations. Some
specific business
practices are
considered by
this business
which is formed
& controlled by
the government.
The main
concern the
wealth
maximization.
This kind of
business also
work to address
the requirement
of the customers
& provide the
them high quality
of goods &
services which
can aid to gain
more profit
advantages which
can lead the more
advancement of
the society.
status which are discussed
below -
Central - This legal
structure formulated by the
government & all the legal
consideration authorized by
the government.
State - This legal structure
specifically monitored by
the central government &
all the functions are
performed by the state
(Bukair, 2019).
Local - This legal structure
mainly managed by the
local authorities & there is
also a interference of
government in context of
specific suggestions to
operate business operations
in a particular local areas
on the basis of state.
effective independency
for the effective
regulation of business
operations. It mainly
contains the
parliamentary welfare
& provides goods &
services for the
convenient of the
people.
of political influence
which provide. The
adverse impact on
the working of the
organization.
Antisocial activities,
ignorance of the
customer’s interest,
risk of
manufacturing the
inefficient goods &
services can be
considered as the big
weakness of the
public businesses.

Private
organizations -
This kind of
businesses
mainly controlled
and also managed
by the private
individuals. The
prime motive of
rabbit
organization is
profit
maximization.
This kind of
businesses
provides best
contribution in
the development
of the country's
economy.
There are specific kind of
legal structures contained
by the private
organizations which are
discussed below -
Sole proprietorship -
This legal ownership
structure is handled &
controlled by the individual
who is responsible for the
each and every activities of
private business. Owner of
the business is liable to
take appropriate decisions
for the growth of the
business without any
interference of the
government.
The main strength of
private organization is
that the powers &
rights of the business
are on one hand and
there is no engagement
of third party.
In this type of
organization, entire
liabilities mainly
utilized by only one
person that is owner
of the business so it
can be a main
weakness of this
organization.
Business is existing
only the appearance
of the owner of the
business without the
owner no business
operations can be
considered.
Partnership - this
ownership structure
involved the interference of
two or more people who
can be a partner of the
business. All the activities,
decisions, success, failure,
shares of the business
regulated by the partners
who are equally liable for
the business operations
(Chi, and et. al., 2019).
The main strength of
this business is there is
less legal obligation so
that owner can take
better decision for their
business.
Entrepreneurs can
effectively maintain
their skills, knowledge,
competencies &
network very
effectively without
more involvement of
There are some
certain weaknesses
of this business
which can create
some issues in the
working of the
private organizations
like loss of the
autonomy, lack of
stability, future
selling related
complications. All
these factors can

the legal consideration. affect the
performance of the
business.
Limited liability
partnership -
This legal structure contain
that all the partners contain
the limited liabilities. This
LLP structure maintains
the specific elements of
partnership & corporation.
This structure determines
that each partner is not
liable to other partner
misconduct (Dobrodolac,
and et. al., 2018).
There are some factors
are involved which can
be a strength of this
legal structure like no
minimum capital need,
less registration cost,
no limit for the owner,
no need of the
compulsory audit.
It is analysed that
public disclosure is
the main weakness
of LLP. It must
contain at least 2
members.
Companies -
Basically this legal
structure is considered as a
legal entity which is mainly
formed by the individuals
who can engage with the
business activities &
maintain commercial &
industrial formations.
Company can be formed in
both private & public
organizations & contains
different ownership,
financial reporting needs &
The main concern of
this legal structure is to
use perpetual
succession & maintain
legal considerations.
Strong customer’s
services, high integrity,
less cost
manufacturing, strong
employee’s attitude
considered as the main
strength of the
company.
Limited availability
of the goods,
confusing services
strategies &
policies , less
quantitative
objective & lack of
top management
involvement can be
contain as the main
weakness of the
company.

other regulations (Lee,
2019).
Voluntary
organization
This is nonprofit
organization and
the main concern
of voluntary
organization is to
work for the
welfare of the
people of society.
These type of organizations
contain specific legal
structure such as -
Trust - This framework
mainly provide the trustees
by this structure all the
essential consideration
related to the organization
name , operations &
maintain the activities.
Associations - This
structure is incorporation
of the various activities &
operations related with the
constitution & maintain all
the prominent activities.
To resolve the social
complexity and issues,
public trust maintains
the living standard of
the people so that they
can provide their
participation in the
development of the
economy. Public trust
association of relief of
taxation and other
revolutions.
Voluntary
organizations taking
more time because it
mainly work on the
basis of commitment
of the people who
want to be show
their participation on
their own will.
Charitable
organizations
This is work like
a
nongovernmental
organization
which mainly
involved in the
nonprofit
considerations
related to the
individuals,
activities,
Charitable organizational
consider specific kind of
legal structure which are as
follows -
Unincorporated
Association -
This organization mainly
set through an agreement
between the group of
people & work collectively
for a specific reason rather
than to make profit. In this
structure, each & every
These organizations
are mainly responsible
to create better
conditions for the
society so that
common and social
people can live their
life effectively and
improve their living
standard (Loon, and
et.al., 2020).
The main drawback
of charitable
organization is that it
is mainly depend
upon the charity
amount that is raised
under this
organization. Certain
political activities &
trading are work like
restrictions for this
organization.

voluntary and
also social
persons. The
main motive of
this organization
is to social
welfare and
maintain
sustainability
rate.
person is any kind of
specific debts & the
contractual obligations.
Charitable trust -
These organizations mainly
target the small groups that
known as trustees & they
are generally elected &
also hire by the specific
methods that are not being
associated.
Evaluation of various sources of finance that is available for business start- up together with its
pros & cons.
To start a business or maintain specific projects, there is requirement of also considered by
entrepreneurs in UK. There are some sources of funds are available for the owners & managers
so that they can effectively maintain their business & startups. The description about the various
source of funds & its strength & weaknesses are as follows -
 Bank loans - This is most common financial source which utilized by most of the
entrepreneurs to run their business operations in a smooth way. Bank loans providing the
regular payments related practices for long term period (Mosteanu, 2020).
Strength
Businesses can take bank loan for long or short
period of time. The interest rate in very low so
it is quite convenient for the organization to
take loan. It does not require any equity in
order to get loan so it can provide most suitable
procedures to the organization (Nishiyama,
Weakness
People need to give against the loan like
property or assets if anyone cannot reply the
loan amount then bank can take the assets and
property.

2019
 Venture capital - This is like a private equity financing which mainly given by the
venture capital organization to those businesses and startups who are working on their
business at initial level. This financial source determines the growth rate.
Strength
The financial resources provide wealth &
expertise to the firm & also give large sum of
the equity amount to the businesses. There is
flexibility for the reply because it does not
contain any obligations (Randhawa and et.al.,
2021).
Weakness
In this financial source, the overall cost of
financing is more expensive & the ownership
of the entrepreneur is reduced that are the main
weakness of this source.
 Angel investors - This financial source mainly give capital for new start ups basically in
exchange of the ownership equity & convertible debts. The main concern of Angel
investors to provide their best support for new start up so that they can start their business
effectively.
Strength
Angel investors can take decisions for the
investment very rapidly & there is no need of
repayment & interest. Angel investors also
contain the ability to attract the additional
financing.
Weakness
This financial source doesn’t have the national
identification. Angel investors do not have full
monitor & control as a part owner.

QUESTION 2
Three different types of sectors which operate within the UK economy & the difference between
all. Comment on their value in UK economy.
In context of UK economy, there are 3 types of sectors contain by government which can
help full to operate the business activities in a systematic way. All the sectors are engaged to
obtain the appropriate inputs & get deserving output so that it can effectively create more value
in the manufacturing and production. The description about the three types of sectors which are
operating in UK are discussed below -
 Primary sector - This sector concerned about manufacturing & raw material. The
primary concern of the UK is to maintain some resources which are related to the
renewable resources such as wind power, energy, solar & geothermal energy. Primary
sector also focus on the non renewable resources such as oil extraction, mining of the
coals, minerals, natural gas & fossils fuel. This sector provides various employment
opportunities to the people and also contains specific advancement for the people. This
type of businesses we use mining, farming and also fishing (Sardo and Serrasqueiro,
2017).
 Secondary sector - This sector mainly focused on finished goods which are are
considered as a processing of the raw material and manufacturing. The main work of
secondary sector is to change the input into an appropriate output with all the
consideration of the finishing goods. With the help of technological advancement,
businesses can develop their product and services. For instance, Tesco used to to
maintain all the production and also manufacturing process (Weske, 2019).
 Tertiary sector - The prime concern of this sector is to pay more attention on the
intangible concept which adopted by the organizations. This sector is mainly concerned
about the service sector and also provides various services related to the finance,
hospitality, human resource, transportation and many other services which can improve
the productivity of the labour. In context of UK economy, directory sector is the most
growing sector which also utilizing advanced level of technologies by large corporations.
For instance, Sainsbury's, Intercontinental hotel & Barclays Bank & many more (Shakeel,
and et. al., 2020).

Basis Primary Sector Secondary Sector Tertiary Sector
Meaning Basically primary
sectors is maintained
all the considerations
related to the
manufacturing and the
raw material and also
contain specific
resources which are
related to the
renewable and non
renewable resources
related to specific
business practices and
operations.
In secondary sector
all the processing
applicability of the
finished goods is
considered. The main
motive of this sector
is to convert raw
material with a help of
manufacturing
process into the
finished goods so that
organization can
regulate the buying
and selling activities
in an appropriate
manner.
This sector concentrate
on in tangible services
provided by the services
industry like hospitality
industry, food &
beverage industry ,
aviation industry and
many more.
.
Working Primary sector focus
on traditional areas in
order to maintain
there working process
and all the practices of
the working is an
unorganized form. .
Secondary sector is
use the systematic
working processor in
order to maintain their
production process to
obtain the specific
good and services as
an most appropriate
outputs (Sungkono
and et.al., 2017).
This sector utilise the
longest six method for
the current situation
so that all the
functional activities
can be done in an
appropriate manners
in order to satisfy the
requirement of the
customers.
Efficient employment Primary sector give
provide location of
the employment at the
This sector is liable to
provide efficient
employment
The sector also covers
the major population
of the united kingdom

minimum cost rate to
the people who are
engaged in the
machinery process.
opportunities to the
most of the people so
that they can
effectively improve
their living standard
and also work in
production and
infection department
in order to obtain an
appropriate outcome.
(Utama and et.al.,
2017).
and there is also
involvement of most
of the people in order
to satisfy the nice and
requirements of the
people. The sector
analyze the customer
requirement and then
provide quality of
services in order to
gain more satisfaction
level of their
customers.
Value in UK economy
UK contain as the sex largest economy all around the world. The main concern of the
government is to focus on the GDP so that they can effectively improve the performance related
to the finance, entertainment, hospitality and many others. The contribution of all these set alarm
in contacts of UK economy in which primary sector mainly contribute the 0.61% related to the
total working area & secondary sector contributed less than 17.41 %.
QUESTION 3
Identify two HR policies & its importance in modern workplace.
As per the modern era, there is demand of human resource increasing rapidly because it can
mainly concert about the purpose related activities within an organization. Human resource
management department is playing a prominent role in each and every enterprise which are
responsible for day to day operations of the employees and also liable to formulate specific
policies and strategies for the development of the workforce. HR manager of the enterprises is

responsible to maintain and follow appropriate policies apart from this manager is also liable to
conduct communication channels and spread the awareness about how important to follow all
these policies for the welfare of the organizations & workface. Explanation related to the most
prominent HR policies which are mentioned as follows -
 Health & safety - It is necessary for the organization is to follow this policy which can
help to maintain the heath of the workforce & also provide them proper security. Health
and safety policy of the organization is work like a support system which can improve the
productivity & efficiency of the employees in order to take care about their health
properly. Supreme concern of the organization is to full fill all the considerations related
to the health and safety so that all the members and teams can perform their duties in an
effective manner. HR manager properly follow laws, legislation, acts, plans, procedures
so that manager can maintain all these considerations properly in order to protect the
rights of the workforce and also provide them healthy environment. This policy is
beneficial to eliminate the risk factor and also enhance the employee’s loyalty towards
their work.
 Equality & diversity policies - This HR policy is mainly focus on the equality & diversity
of the employees so that they can effectively perform their duty in order to in both
possible outcomes for the welfare of the enterprises. The main concern of this policy is to
spread equal practices and consideration within employees so that they can feel valuable
within an organization. Managers & leaders need to behave equally & treat equally so
that they can work without any pressure in order to gain more profitability. Manager of
the organization need to follow the equality act 2010, which helpful to reduce the
discrimination level among the employees & improve the communication level of them
so that they can share adequate information with each other. This policy is beneficial to
remove the unnecessary issues which affect the performance of the individuals & group
of the organization (Van Looy, 2019).
These HR policies provide lots of benefits to the enterprises so that they can effectively
maintain all the strategic planning & other considerations more effectively. HR manager analyze
the risk factors & that choose the most effective policies for the betterment of the organization.
HR manager can also use other policies like wages & salary, employee’s performance,
employee’s development & many more.

CONCLUSION
As per this project it is concluded that for the successful business it is necessary to maintain
proper structure which can helpful to regulate all the activities & operations in an appropriate
manner as per the consideration of the time period. In this project, there are various kind of
organizations are discussed which can determined their own legal structure, strengths &
weaknesses. All these kind of business organizations are categorized in various forms like
public, private, voluntary & charitable. All these organizations contain specific purpose in order
to deliver their value related to the goods & services. This project also explained about three type
of sectors like primary, secondary & tertiary sector. All these sectors are helpful to maintain the
requirement of the people. Moreover, this report also determined the various kind of HR policies
related to the health & safety, equality & diversity so that HR manager can effectively maintain
all the practices of the employees & improve the effectiveness of the organization as per the
modern consideration.

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