The Structure Of Business

The Structure Of
Business
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Table Of Content
INTRODUCTION.........................................................................................3
TASK 1
A)Prepare a table which shows the various legal statuses of businesses that the business may
adopt. Find out about the strengths and weaknesses of these legal statuses.......................3
B) What are the weaknesses and strengths for evaluating and identifying the three sources of
finance which are available for business start-up after considering the business idea...........5
TASK 2
What are the three sectors within the UK economy where business can be operated. Explain
about the differences between these three sectors? Describe about their value to the UK
economy....................................................................................................7
TASK 3
Explain about the two HR policies and describe about their value into the current
organisations.............................................................................................9
CONCLUSION..........................................................................................10
REFERENCES..........................................................................................11
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INTRODUCTION
Business structure is that structure which is recognized as the legal structure of an
organisation which is defined in a given jurisdiction. The key determinant of all the activities
that has been taken place in the business is due to the organisational legal structure. It
includes growth in the capital, business obligations responsibility and about the amount of
taxes which the organisation owes to tax agencies. In this report, the analysis has been done
on the various legal structure of businesses. (González-Val, R. and Marcén, M., 2017).The
analysis has also been done on the pros and cons of the three sources of finance which is
available to business start-up. Within the UK economy in which the business can operate in
terms of the three sectors, the research needs to be done on it. The research has also been
done on the HR policies and about their modern workplace. The chosen organisation is
Sainsbury’s. It is the company which is the second largest chain of supermarkets in the
United Kingdom. This company was founded in 1869 by John James Sainsbury. The
company’s headquarter is in the Holborn Circus, City Of London. The company has been
divided into three sectors which is named as Sainsbury’s Supermarkets Ltd, Sainsbury’s bank
and Sainsbury’s Argos.
TASK 1
A)Prepare a table which shows the various legal statuses of businesses that the business may
adopt. Find out about the strengths and weaknesses of these legal statuses
There are four main types of business structures which are available in the UK
country. It has been described in the following manner:
SR.NO
.
Business
Structure Type
Description
1. Sole Trader
Sole trader is that type of trader where an individual is
responsible for all kinds of activities in this kind of
business structure. (Hooper, M. J., 2016). The individual is
responsible for all kinds of profits and he is the person who
keeps it as the profits and also responsible for all kinds of
tax and national insurance after filling out the self
assessment form.
2. Partnership Partnership has been defined in the manner that it involves
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two or more individuals who agrees on the legal terms and
conditions. Under the partnership head, it shares all kinds
of risks, costs, benefits, responsibilities and other aspects
also. Partners are those who are known as the
unincorporated entities and they are self employed by
nature.
3. Limited Liability
Partnership(LLP)
The amount of money invested in the business is limited to
the partner’s liability. Partnership is similar to the LLP.
The LLP must be registered with companies house and
with HMRC.
4. Limited Company Under this head, it is owned by its shareholders and it is a
privately managed business. (Arévalo, and et.al., 2016).
Due to its own rights and obligations the company is a
separate legal entity. Their finances are always separate
from their personal affairs and the company is whole sole
responsible for everything that they does.
Strengths of Sole Trader: Their main point is that they are easy and simple to form. It is
simple in terms of managing it. (Dudin, and et.al., 2015). They themselves enjoys all kinds of
profits. This profit motive is a kind of an incentive to work hard. In this sector, start-up costs
is always low. It has the maximum privacy also.
Weaknesses of Sole Trader: It has the unlimited liability for debts. The overall liability for
making every day business decision depends on the individual person. Its very difficult to
take holidays.
Strengths of Partnership: Under this head, it is less formal with fewer legal obligations. It
easy to get a start in this head. It gives the advantage to share the burden. It gives the better
decision-making power. It shows the ownership and control in form of combined manner.
Weakness of Partnership: Under this head, if any businesses losses and liabilities are there
then they have to bear equally both of them. The decisions can’t be made in a self-manner
way, it is because of the reason that they are working as a partner.
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