Structure of Business

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.