The Structure of Business

This study material provides an in-depth understanding of the structure of business, including legal statuses, finance sources, and HR policies. It explores the different sectors in the UK where businesses can operate and the importance of HR policies in the modern workplace. Get expert assistance at Desklib.

THE STRUCTURE OF
BUSINESS

INTRODUCTION...........................................................................................................................3
QUESTION ONE............................................................................................................................3
Constructing a table for showing various legal statuses or business frameworks.......................3
Strengths and weaknesses that are required to consider while planning to establish the business
.....................................................................................................................................................5
QUESTION TWO...........................................................................................................................7
Identification of three sectors in UK wherein business can operate............................................7
QUESTION THREE.......................................................................................................................9
Identification of two HR policies and their importance to modern workplace...........................9
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
Business means that type of commercial activities in which a continuous production is done
and selling of commodities take place by an individual. This is done in order to gain satisfaction
through buying and selling of goods for the purpose of earning livelihood, profit and providing
satisfaction to customers. While establishing of new business different goals are going on in the
mind of an entrepreneur that is earning profit, generating customer base, doing social welfare,
job creation and many other things. All these are part of business structure and in this assignment
Love craft has been taken that is one of the most popular start-up which is related to retail
industry of UK. Such start-up deals with beds and floor designing products. This is a very
effective idea of business with less capital to be invested and most importantly demand of
customer can be achieved in very effective manner. This report is based upon business sectors
which contribute to an economy, different legal framework in relation to business start-up and
finance generation of alternative. Also human resources have been identified with modern
business.
QUESTION ONE
Constructing a table for showing various legal statuses or business frameworks
According to (Christensen, Bartman and Van Bever, 2016) Business is an idea that is being
presented by an entrepreneur over production and selling of products in order to gain profit from
it. It is very important to keep in mind legal rules and structure of a business to full fill
requirements that are related to registration of business to get license. As online retail business is
one of the fastest growing industries in UK and upon that it is able to provide opportunity to
young and talented entrepreneurs to start a business. Entrepreneur is required to be aware about
the opportunities that are there within the market because of technological development in a
country. To start an online business of retail business Love craft is required to take effective
decision and its entrepreneur has to be committed over delivery of best services to its customers
and makes process of delivering easy for them. range of product includes both carpet for all
kinds of flooring and wooden finish cover for floor. Also it has other products like clothes, belts,
wallets with vide range of design and cost specific material which suits all range of customer.
The table shows various kinds of legal framework which can be adopted by Love craft and they
are as follows:
Frameworks of
businesses
PLC LTD CIC Registered
Charity
Meaning PLC means
public limited
company that
LTD means
Limited
company which
CIC means
Community
Interest Company
Business that has
to be established
and activities are to

has shares which
are being
distributed in
public in the
form of stock
exchange and
liability is also
limited.
has shareholders
and there
liability is
limited over the
capital that has
been invested.
The business
has to be
featured as
limited liability.
that is existing in
order to benefit
society with view
of initiating social
purpose instead of
profit earning
(Clauss, 2017).
be operated to
charitable purpose
and get it
registered.
Objectives Business that
has to be formed
as per PLC
framework is
able to raise
maximum
framework
having objective
to gain
maximum
capital shares.
Businesses have
to be adopting
LTD framework
that is having
objectives in
order to gain
profit out of
operations of
business.
Objective of
business is
adopting CIC
structure for
utilizing over
public
commodities
An registered
charity has an
business and are
philanthropy along
with social well
being.
Commencemen
t of business
In PLC,
business and
Certificate has
to be made
regarding
commencement
of business
along with
incorporation
certificate to
start business.
In LTD,
business has to
obtain an
certificate of
incorporation
with the hope of
doing business
in that market.
Businesses which
are planning to
adopt CIC
structure has to
gain Certificate of
registration and
incorporation to
perform business
activity.
Planning business
has to do business
ender registered
charity framework
and has to have
Certificate of
charitable
incorporation and
many more.
From the above mentioned table it has to be understood that Love crafts is required to
take LTD structure with the framework of business. Star-up of an online retailer has to achieve
professional status, separate legal identity, investment also providing opportunities, maximizing
tax free gains, generation of huge income and is necessary over protecting organization and its

name has to be protected with personal liability. Setting up of a business has been limited and it
is one of the best ways to start the business.
Strengths and weaknesses that are required to consider while planning to establish the
business
Start-up is like a growing plant that is required more care in starting and has to be focused
upon strategies related to development stage. When entrepreneur of Love craft is planning for
establishing it in UK’s online retail sector and they are required over consideration in following
(Dijkman, Vanderfeesten and Reijers, 2016).
Strengths of LTD structure:
Tax efficient: This is a well known entity which is required by Limited Company
structure and is likely to become tax efficient. Establishing Love craft the entrepreneur is
required to consider the strength which is going to be helpful in generating of large amount of
money that is not being taxes in accounting year.
Limited liability: LTD framework is an offer that is limited liability under which an
entrepreneur or owner of start-up business. Under the situation in which an entrepreneur of Love
craft is having limited liability then protection is done with finances in the eyes of law.
Maximizes tax free profits: These are strength of a LTD company, which has been
enhancing of tax free income. Through having loving ones as shareholders. It is required by the
entrepreneur of Love crafts to consider this strength when making decision over establishment of
business.
Agility: Start up of a business is required to adopt market conditions under which
customer are also present in it. LTD is going to be helpful in making quick adjustment as they
are not required to be dependent upon implementing of decision. That is why adaptability is
going to make adjustment dependent upon implementing of decision making. Such adaptability
of position is going to make innovative over seizing opportunity of success.
Weakness of LTD structure:
Scarcity and choices: Limited Company structure is going to give scarcity and choices
in order to obtain finance. In relation to Love craft the entrepreneur has been required over to
consider the weakness of structure and making decision of business establishes market as an
impact over business.
Accountancy costs: It is one of the most important things for start up business and is
required to support upon dealing over taxes. Lot of tasks has to be accounted and is being
required over performing this includes paying off corporation tax. Organization tax has to return

and VAT is to be returned. This is a state in which entrepreneur of love craft is required to make
higher accountancy (Holienka, Pilkova and Ostapenko, 2016).
This very important for an entrepreneur of Love craft which is going to make full consideration
in order to maintain both strength and weaknesses upon legal rules for forming of business.
Identification of three sources of finance available for business start-ups
For an business that has to set itself one of the hardest part is to arrange funds in order to
proceed business. In context of Love craft the entrepreneur over finance generation of alternative
resources of an idea of business:
Angel investors: These are net worth sources which are having an extensive experience
within a business field and are required to increase capital especially over an early business life
that is against equity. Love craft is required to raise fund which has to be formed and angle
investors is required to consider strength and weaknesses of the source.
Strength: Angel investor is to be provided through great help over entrepreneur that has
talent in order to fail over starting of business to make funds available. Such funding sources of
love craft has to be made limited. Under this funding of sources and all entrepreneurs is able to
gain support over starting idea. Angel investors have to take decisions upon it.
Weakness: In this angle investors has to be provided upon financing over some proportion
of business and is required with share which is going to affect profit margins of Love craft.
Business loans: Bank and other finance providing institution have to be set over scheme to
an offer and various business loans in order to start a company. In case of Love craft
entrepreneur is able to fund from business loans. Following are strength and weakness of
business loans:
Strengths: Business loan is considered to be flexible in nature and they are required to be
used for wide variety. In relation to Love craft business loans are life saver and have to provide
money according to fixed deposit (Huang, Li and et. al., 2018).
Weaknesses: Business loans are very long term debt that is required to be given by
entrepreneur. In case of Love craft loan may harm its assured assets.
Friends and family: An business start-up can also be a source of fund which is close upon
including relatives and friends in order to start business very quickly. Love craft entrepreneur is
required to generate it form strength and weaknesses of source has been given as follows:
Strengths: Friends and family has to be aware about the entrepreneur and their ideas. The
strength source of Love craft is upon interest of payments and is being made in future in order to
repay money.

Weaknesses: Funding of source have weaknesses which it is able to disturbed relationship
among friends, family and enterprenure.
It is very much important for an entrepreneur of business set-up Love craft should keep
strength and weaknesses over available source of funds in order to make decision as source
required and weaknesses available.
QUESTION TWO
Identification of three sectors in UK wherein business can operate
…. Says that business sectors has to be defined in order to set domestic economy that has
been excluded over working of government, nonprofit organizations, private households etc. In
UK three identification sector is being required in which an business has to be operated in
effective manner:
 Private sector: Such sector is being involved by large number of private organizations
that is why it is said to be private sector. In relation to Love craft it has to be operated
under private sector because it is managed by a single person (Rong and et. al., 2017).
 Public sector: It has been created by major decisions and has been created and
implemented through government.
 Joint sector: Such sector involves about activities that has worked as a company of
private nature and follows decision making of government to join a sector.
Such sector is being responsible in order to play important role towards contribution
economy of UK. Difference is being explained as follows
Basis of
differentiation
Private sector Public sector Joint sector
Meaning Private sector is being
managed by a single
person. That is
defining as section of
economy.
Public sector are those
sections which has
been completely under
control of political
system whether
central, sate and local
Joint sector this is
said to be section that
has combination upon
private with public
organization that is
there to serve various
aspects.
Objective In an organization
that has to be operated
under private sector
Business operating in
public sector works is
having an objective
Organization that has
to be operated in joint
sector and aims upon

has to make large
profit and meeting
customer and
establishing position.
over meeting social
obligation.
objective of making
profit.
Serving areas Private sector services
have to be related
over construction,
retail and
telecommunication.
Key area has to be
served through an
organization in public
sector and are mining,
policies(Seyedghorban,
Matanda, and LaPlaca,
2016).
A main area that has
to be served business
includes airline,
housing and energy.
Raises money from Main source of
business has to be
operated in private
sector for raising
funds is through
shares, attracting
venture capitalist
taking loan and
debentures.
Companies operating
in public sector have to
raise monetary
resource from public
revenue like penalty
and share to public.
The sources for
raising money is done
through loans,
customers, vendors
tax incrementing
finances etc.
From an identified and differentiate over business sectors and Love craft in private sector. Then
start up is going to contribute in its value through giving employment to people in UK online
retail industry has to improve economy of a nation. Private sector has very crucial role in valuing
UK’s economy.
Public sector of UK performs significant roles in generation of income within economy.
Also in this sector huge investment is done in infrastructural facility and this has resulted upon
developing of economy as possible (Spieth and Schneider, 2016).
Joint sector has a very huge value in its development and addition over maintain an infrastructure
services over citizens. Further this sector also deals with ineffectiveness of both regional and
local economy with developing in order to help small businesses to grow.

QUESTION THREE
Identification of two HR policies and their importance to modern workplace
Human resource policies has been referred to as those practices which is an process that has
to be adopted over managing interactions among superior and subordinates. This is very
important for business in order to have human resources policies law is required for it. Such
policies are required to create favorable environment for employees to work in modern
workplace. In relation to this Love craft, HR policies is important for protecting of business
against liabilities which includes claim and is referred to as unfair employment practices and
many more. This is probably discrimination in modern workplace between employees upon basis
of race, gender and other factors.
Health and safety policy: One of the policies that are related to HR is of health and safety
that has to be maintained at workplace. It is related over the well being of staff members and it
protects them against hazards and other dangerous activities. Into modern workplace of Love
craft there has to be health and safety policies which prevent illness and addition over injury to
an person while doing an activity. Training over tools is required to be give to employees for
managing of tough situation that can have adverse impact upon business.
Equality and diversity policy: Equality and diversity is very important over an workplace
because it is going to be improvising the working process. It is all dependent upon manpower
and there treatment upon the basis of race, culture background, skills, belief, gender, age etc.
with diverse policies entrepreneur of Love craft people working from different background has
widen thinking and range at work place (Sund and et. al., 2016).
HR policies like Health and safety policy has diverse policy entrepreneur of love craft is
going to be benefitted from this and make brand a diverse one which has people from various
culture, experience also vary and many more. In today’s workplace both policies and crucial
retaining of employee has to achieve sustainability in completion.
CONCLUSION
From the above report it can be marked that an business can only start with an idea and
also nature of it has an very important role to play. Research is required in order to determine the
turning concept or an idea into business this is going to be feasible and also deliver values upon

customers. Also legal structure has to be adopted from the starting of business which involves
CIC, PLC, Registered Charity and LTD. Finance over careful planning under which an
entrepreneur has small needs of business in order manage finances and sources of finance.
Sources of finance is related to business start-up is angel investor, business loans, family and
friends.The three sectors in which a business can successfully operate are public, private as well
as joint sector.

REFRENCES
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