The Structure of Business InTRODUCTION

THE STRUCTURE OF
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Question 1........................................................................................................................................1
A- Various legal statuses of business with its strength and weakness...............................1
B- Three sources of finance with strength and weakness..................................................1
Question Two...................................................................................................................................2
Identify three sectors within the UK economy in which a business can operate...................2
Question 3........................................................................................................................................2
HR Policies and importance...................................................................................................2
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Innovation is the aspect by which start up business Idea comes in the mind of owner that
turn into new business. In relation to this, it is necessary to have the the analysis of required
resources and the business must we go on with the legal consideration and having effective
human resource and other finance source. The entrepreneur and the business is the individual
who is having unified skills and knowledge in order to start the new venture(Bashir and et.al.,
2019). All the business required monetary funding as it is the basic need of all the businesses and
maintain their legal structure and analyse the policies of the company so that they can identify
the target market where they have to operate their business. This report will analyse the different
legal structure which is being operated in the United Kingdom with their strength and weakness
and also evaluate the different monetary sources which are being adopted by the organisations
with their strength and weakness in order to start the new venture. It is also identified that
different human resource policies are there in the business environment. Nail salon is the chooser
business start up for conducting this report as it offers various services like manicure pedicure
and nail beauty to their customers. There are various options in the the nail salon which is been
provided are fibreglass wraps, manicures, polish and pedicures so that they can target the large
group of customers.
MAIN BODY
Question 1
A- Various legal statuses of business with its strength and weakness
There are various legal structure that is being used by the new startup company in the
United Kingdom they are divided into public private and registered charity. All the business
structure explained as follows:
Public limited company: it refers to the type of business in which the product and services
being offered to the general public within the minimum share capital of the government. 95% of
the private limited company are public limited company in the United Kingdom(Dicke, 2017).
Strength: this type of organisation found in an easy way and public limited company operating
their business as a signal legal entity from their owner and the shareholder which are included in
the business. The capital can be collected from the acquisition of different theories which is
being considered as the fortunately for expanding their business in new areas.
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Weaknesses: the public limited company is the one who is having no control over other
businesses and have consideration to protect their shareholders. The legal and regulatory
requirement can be high and the legal consideration for the financial resources is high that is up
to 25% is paid up in the public limited company.
Private limited company: it is the the combination of public limited company and
private limited company and there is a minimum paid up share capital of private limited
company which is been described and they just take the right to the transfer and having few
number of shareholders(Hrustek and et.al., 2019). As it would be up to 200 where the individual
to not have full control over the various aspects of the business. The organisation is generating
profit which is being shared among their shareholders in the form of dividend.
Strength: the private limited companies having a separate legal entity that do not required
minimum capital and the fund can be raised from the various ventures and investors. There is not
so much financial burden due to their unlimited shareholders and liabilities which is being
divided into them (Freitas Junior and et.al.,2017).
Weaknesses: private limited company cannot transfer their share cannot be issued to the public
as the share is not quoted in the stock exchange and the owner is liable for their insolvency of the
business venture.
Registered charity: when the individual or the association is proposed to be registered as
a limited company under the act for doing social welfare and registered in the limited company.
If the government is satisfied with the intention and the objectives after that the licence is being
issued for the person and the registered company is called as charitable company.
Strength: the charitable trust get huge relief from the taxes as they are operating their business
with the consideration of social welfare and having good public organisation by adding the trust
of the individual. Such organisation raise the fund from different sources by having charitable
status.
Weaknesses: charitable company is face restrictions to carry out the various operations and
required to comply with legal consideration which is being imposed by the government of UK.
Capital can't be raised from equity investment and the payment of the trustee for the supply of
professional services which is being provided until the constitution of charity and charity
commissioner have to pay attention on the required detail explanation about the firm(Levenson
and et.al., 2017).
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