Structure of Business

This document provides information about the legal statuses of businesses, strengths and weaknesses of finance sources, different sectors in the UK economy, and the importance of HR policies in the workplace. It discusses the different legal structures that businesses can adopt, such as public limited company, private limited company, and registered charity. It also evaluates the strengths and weaknesses of three sources of finance available to business startups. Additionally, it explores the three sectors within the UK economy and the differences between them. Lastly, it discusses the importance of HR policies in creating a positive working environment.

Structure of Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Determine different legal statuses of businesses that your business may adopt and strengths
and weaknesses of these legal statuses........................................................................................3
Evaluate strengths and weaknesses of THREE sources of finance available to your business
start-up.........................................................................................................................................5
Determine three sectors within the UK economy in which a business can operate. What are the
differences between the three sectors?.........................................................................................8
Determine HR policies and their importance in the workplace...................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Starting an own business with innovative and relevant business ideas and resources that becomes
a major reason contributing new business startup. With these innovative ideas the business also
must evaluate the resources of the business for conducting the business functioning. For business
startup it requires identifying the resources these involves determining the legal business
structures, the sources of finance, and different human resources. Wherein identifying the
financial requirements in order to fund al the needed business strategies, segmenting the business
into legal structures and implementing the favorable policies in order to establish the identity of
the business in the marketplace. The chosen business startup is “Natural food services” which
is a business initiating to delivering natural food services, using organic and vegan food
ingredients to attract the customers with quality food services. Natural food services business
startup is based out of UK for delivering the quality food services to the customers in UK. With
high living quality standards of the people in UK, the business startup fulfils the customers high
living standards and taste and preferences to accomplish customer satisfaction. This report
delivers detailed information different business legal structure in UK and the legal structure
adopted by the business with the strength and weaknesses of the legal structure of the business,
information about different financial sources of the business, the sources adopted by the business
startup with the relevant strength and weakness applied to the business, the three different sectors
of the UK economy and the differences between the three of them, information of different
human resources policies and the importance of these in the workplace (AJAGBE and et.al.,
2016).
MAIN BODY
Determine different legal statuses of businesses that your business may adopt and strengths and
weaknesses of these legal statuses.
Legal statuses of businesses are being divided as per the nature of the business activities. These
are primarily divided into different business segments such as public limited company, Limited
company and registered charity. These are discussed below in brief:
Public limited company Private Limited company Registered Charity
Public limited company The limited liability company The registered charity

(PLC) includes the businesses
that can offer the shares of
the company to the general
public, over 95% of the
limited companies n UK are
public limited companies.
There are different set if
benefits to the PLC wherein
these companies find
convenient form of raising
business capital. the company
will have the legal entity
which will be spate from the
owners and the other
shareholders of the business.
these company can easily
raise capital by public
deposits, acquisition by
offerings shares. PLC falls
into existence even after
business failure.
The major drawbacks over
the public limited company
are that the owner of the
business will lose control
over different business, the
business will be accountable
to large number of the
shareholders.
includes the private limited
company and the public
limited company. In the
private limited company, the
owners of the business fills
conduct the tax files and other
business activities with
limited number of
shareholders who does not
have the control over the
business activities. In the
private limited company, the
finances and the other taxes
of the businesses are separate
from the business. the
company distributes the he
profits of the business is been
divided among the
shareholders of the business
as dividends. The directors or
the owner of the business can
draw money from the
business for salary, dividend
or loan. The benefits of the
private limited company are
that the shareholders are
unlimited which reduces the
financial burden and the
business liability is been
divided into different
shareholders. The private
includes all the organisation
which are operated for the
sole purpose of conducting
the business activities for the
charitable purposes and
satisfy the social values of the
society. There are huge
benefits of the charity
organisation varying from
reliefs in the taxes, it
addresses and gets the public
recognition and earn trust of
the society, easy funding
from different sources.
Wherein, the drawbacks of
the registered charity
organisation includes that
these organisation cannot
raise capital from equity
investments, the board or the
director of the business ae not
paid until the charity
commission allows,
moreover, these organisation
faces different restrictions in
order to carry out the
different activities, these
companies must comply with
all regulatory requirements of
the framed by the government
of UK.

limited company earn more
revenue by producing goods
at low cost.
The drawbacks of the private
limited company involve it
restrict the raised capital, it
requires the acceptance from
the shareholders of the
business, while borrowing
money the directors or the
owner of the business should
hold the guarantee of the
repayments of the loan if in
case the company is unable
repay the loan in future. The
director of the business is
held liable for the insolvency
of the business (Drobetz,
Schilling and Schröder,
2015).
Evaluate strengths and weaknesses of THREE sources of finance available to your business start-
up.
There are different sources of finance depending upon the nature and the time period of
acquiring the funds. These different sources of funds involve the expensive and cheaper funds,
the internal external sources of funds and other. Where the sources of funds can be segregated
into three different section based upon the time period involves these are as short term sources of
finance, the long term sources of finance and the long term sources of finances (Horner and
et.al., 2015). In order to finance the business activities of Natural food services, these financial
sources of the business are discussed below in brief:

Long Term Sources of Finance
Loan from financial institution
Loan from financial institution for long period of time for huge amount support the business to
meet the financial resources of the business, where there is different financial institution that
deliver financial support to the businesses at cheaper and affordable rates. Wherein, Natural food
services business takes the help from these financial institutions in UK ta different rates and
serve the financial needs of the businesses.
Strengths: It helps to serve the business by meeting the long term financial requirements of the
business.
Weaknesses: it increases the financial burden of the business
Government grants
The government of UK delivers financial and non-financial support to the business in UK, in
order to promote the economic development of these businesses. Natural food services take the
help of these governmental grants that helps the business to deliver business growth solution to
the identified obstacles faced by the business and take the help of the financial support delivered
by the UK government (Khan, Rasli and Qureshi, 2017).
Strengths: Easiest and convenient way of meeting out the financial requirements of the business.
Weaknesses: Difficult to have access to the governmental grants as it needs a convincing
business proposal.
Retained earnings
Retained earnings are called as internal sources of financing the business activities. Retailed
earnings are called as the undistributed profit which the business sets out from the profit makes it
as the reserves in order to use it for business requirements. Natural food services practice this the
approach of making retained earnings in order to use it further business requirements (Lionais,
2016).
Strengths: It helps the business to meet the financial requirement by not incurring any extra cost
for identifying the financial requirements.

Weaknesses: Reduces the profitability of the business.
Medium term sources of finances
Borrowing from banks
Borrowing from the bank helps to deliver financial solution to business for both medium and
short term sources of finance. Wherein, Natural food services takes the financial support from
different financial institutions for the period of 3-7 years, these are also called as term loan or the
demand loans. The financial institution in UK delivers the financial support delivers the loan to
the business with or without any security.
Strengths: Great way of meeting the financial requirements of the businesses.
Weaknesses: Expensive method as the interest charged is been added up to the loan amount.
Lease financing
Lease financing is important approach in order to meet the financial requirement of Natural food
services business wherein the business acquires the land and other fixed assets of the business in
lease by paying the monthly rents for a specified period of time. As Natural Food Services is a
startup company thus, acquiring the useful fixed assets of the business help to reduce the
financial burden of the company and meet the business requirements (Masanja, 2018).
Strengths: It helps to meet the financial requirements of the business and reduces the cost for
acquiring the fixed assets.
Weaknesses: the ownership of the lease financing is not transferred.
Short term sources of finance
Bank credit
The most common sources of finance, wherein Natural Food services company takes the
financial support from different financial institution in order to meet the working capital
requirements (Olson and et.al., 2018).
Strengths: Bank credit helps to meet the short term fund requirement of the business
Weakness: It increases the liability

Loan from director
The director in Natural Food services company delivers their finical support in order to meet the
financial requirements of the business, wherein the manager of the business delivers the
advances to the business in order to meet the short term finances of the business.
Strengths: Great sources for the business in order to easily finance the businesses without any
security and other requirements.
Weaknesses: Creates the financial burden to the owners of the business.
Depreciation fund
Other short term financial sources of the business also include depreciation, where the
association builds the deprivation fund reserve in order to collect the finances and allocate them
in business requirements (Sund, and et.al., 2016).
Strengths: Easiest way of utilizing the funds into business activities.
Weaknesses: It becomes difficult maintain the depreciation fund and reduces the profit.
Determine three sectors within the UK economy in which a business can operate. What are the
differences between the three sectors?
There are different business sectors in the UK economy that delivers revenue and build economic
development. These mainly includes the primary, secondary, tertiary that includes different
business activities in order to promote strong economic development, these different business
sectors deliver input and output that adds value to the economy. The primary business sector
includes businesses delivering the primary activities like providing raw material to other
businesses, the secondary business sector includes manufacturing and production activities and
the tertiary business sectors includes delivering services and intangible assets to the customers
(Waldner and et.al., 2015).
Primary, secondary, tertiary are the three sectors in the economy, wherein the primary sectors
includes the business that involves in acquiring of the raw material, wherein these business
delivers the raw materials to the other business so that they are able to carry out further business
production activities. Acquiring raw materials such as metals, coals, farmed foods and other. For

example, these includes the business that carries mining activities and earn revenue by selling it
to other business purposes.
Secondary business sector includes the business the involving in acquiring the raw material from
these primary sectors and continuing the business activities by conducting production and
manufacturing business activities. These includes transferring the raw materials into the final
output for further sales of the products like making clothe from the clothes. These business earns
revenue by delivering these finished good to other business such as to ten retailer and
wholesalers. For example: Aston Martin Lagonda which is a British public limited car
manufacturing company producing luxury sport car, headquartered in England, UK. The
company was founded by Lionel Martin and Robert Bamford in the year 1913.
Tertiary business sectors include those business which delivers commercial services to the
different customers which involves transportation, insurances and other tangible value to the
customers. These business generates revenue on the basis of the services offered by the business
in the marketplace. Examples: Natural food service the business startup is in the tertiary sectors
where in delivers the commercial services which delivers food services to its customers over UK.
Delivering quality services helps the business in order develop brand identity and generate
revenue by reaching out to large number of customers (Walther, 2015).
Determine HR policies and their importance in the workplace.
There are different human resource policies formulated by the human resource manager in
Natural Food services organisation, everything to maintain the positive working environment in
the workplace and satisfy all the government measures in the workplace. These human resources
helps to conduct the business in the most ethical manner, by taking different measures in order to
manage the business activities, tackling the workplace challenges and others in order to ensure
the business function as per the determined business objectives. These policies are as:
Health and safety policies: The health and safety involves delivering job security to the
employees, workplace environment so that the employees feel comfortable in the workplace.
These heath measures include the rendering leaves of the employees like paternity leave,
maternity leave, leaves for accidents and others. The human resource manager in Natural Food
services company does not deploy any such physical infrastructure that could harm the
employees, apart from the render job security to the employees. Developing health and safety

policies helps the business in order to maintain positive working environment in the workplace
which is crucial in order to increase the productivity and efficiency in the workplace. Health and
safety policy are important in order to deliver fair and transparent business function to provide
safety to the employees and operate the business functioning the most ethical manner with the
legal preceding of the government of UK in order to promote health and safety policies in the
workplace.
Health and safety at Work etc. 1974: This law was passed by the parliament of United Kingdom,
which defines to deliver health and safety to all the working citizen within United Kingdom,
Natural food services company adheres to this law by delivering the employees adequate training
and guidance to the employees so that they are well informed about the health and safety
measures. Moreover, the organisation complies with the law in order to promote positive
working environment in the workplace and render equal and fair opportunities and rights to all
the employees to save the interest of the employees and prevent any kind of unfair means and
discrimination against the employees at work. The law works in different ways such as to protect
the rights of the disabled person in the workplace against any discrimination, apart from that the
health and safety laws works so that the employers take sole responsibility of protecting the
employees at work from any physical injury or harm.
Equality and diversity policies: Developing equality and diversity policies by the human
resource manager in Natural Food Services helps to promote equality and right management of
the human capital in the workplace. Wherein, a workplace consists of individuals from different
backgrounds, cultures thus it becomes important to respect the social and cultural beliefs of the
people. The human resource manager in Natural Food Services develops policies in order
support the workplace diversity and that each and every employee feel comfortable. Moreover,
the human resource manager in the association also implements policies in order to delivers
equality in the workplace by rendering equal opportunities to all the employees at workplace be
it women or men in the workplace, by rendering opportunities, fair remuneration and
compensation to the employees which is free from any discrimination and biasness.
Wages and salaries: It is the main responsibility of the human resource manager in order to
deliver wages and salaries to the employees. The human resources in Natural food services
companies delivers the fair remuneration to the employees as per the different job profile.

Wherein it is the duty of the human resources in order to develop records of the work performed
by the employee, evaluate the performance and deliver the right wages and salaries to the
employee. The human resource manager also delivers compensation to the employees to the
employees against accidents faced by the employees within the employment period. Delivering
wages and salaries to the employees is important as the it’s the basics right of the employees to
get paid in return to the services they provide to the organisation. Thus, human resource manager
delivers the fair compensation that helps the employees to feel satisfied, wherein the satisfied
employees stay longer with the organisation delivering productive services to the business
organisation and on the other hand, the dissatisfied employees leaves the workplace turning to
employee attrition. Thus, the human resource managers in Natural food services delivers fair
salaries and wages to the employees in order to maintain positive working environment (Zhu and
et.al., 2015).
CONCLUSION
The above report delivers the clear resources that are crucial in order to run the business
in the mot ethical and legal manner. Wherein the business should understand the legal structure
framed by the government and complies with all legal proceeding. The above report reflects the
business startup planning to launch the business with innovative strategies and policies. The clear
description of different legal structure followed in UK and the specific legal structure of the
business startup, the sources finance wherein the business manages the fund requirement and
finances important business strategies. The business sector wherein the business is operating
within the UK economy, the human resource strategies and policies to implement in the business
in order to operate the business in the most ethical manner. The importance of the human
resources strategies that how it contributes and manages the internal workforce and business
function management by accomplishing the productive outcome from the optimum utilization of
the available resources.

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