The Structure of Business: Legal Statuses, Sources of Finance, and Sectors in the UK Economy

The structure of
business
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Construct a table show the various legal statuses of business that business will adopt. Identify
strength and weakness of these legal statuses........................................................................3
Considering the business idea, identify and evaluate the strength and weakness of three
sources of finance available to business start-up....................................................................6
Identify the three sectors of the UK economy in which the business can operate. What are the
differences between the three sectors.....................................................................................8
Identify at least two HR policies and comment on their importance to modern workplace. .9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Business structure is defined as the legal structure within an organisation which is examined in
their provided jurisdiction. The organisation structure is regarded as a key determinant in which
different activities are executed by them which is helpful in accumulation of capital, executing
different obligation of the business and paying differential amount of taxes in order to perform
regular working (AJAGBE and et. al., 2016). Before making choice to decide legal structure of
the business the owners are required to decide goals and objectives of the business and its
structure as well. Besides this there are four types of major business structure such as sole
proprietorship, partnership, LLP and LLC. The current report is accumulation of various
concepts related with business structure and gaining opportunities within business. The report is
prepared in the context of an entrepreneur who is recently willing to start their own venture
within UK which is of retail organisation named The Night Jar and in order to get proficiency in
decision they are trying to get knowledge regarding differential structure possessed so that they
can initiate their own venture. This is going to provide knowledge in respect of legal structures
so that strengths and weaknesses can also be examined along with such HR policies.
MAIN BODY
Construct a table show the various legal statuses of business that business will adopt. Identify
strength and weakness of these legal statuses
The legal structure of a company is dependent on different aspect such as scale of the business
and tax implications as well. On the basis of business structure tax calculation is performed by
the organisation. On the other hand if some organisation is having the motive of serving the
society then objectives are set for initiating a social enterprise so that overall business
development can be seen (Sund and et. al., 2016). With the help of following table legal structure
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of businesses can be identified so that this could be easier for any venture to adopt the most
suitable structure. Besides this strengths and weaknesses of each system is also enumerated so
that decision regarding adherence can be taken.
Legal statuses forms About statuses Strength Weakness
Sole proprietorship The word sole is
defined as single that
means these are the
businesses which are
owned and managed
by a single person.
The concept of sole
proprietorship is years
old and used in a very
vital manner. Sole
proprietors are
associated with
managing small
business and very
limited operations as
they have only single
personnel to handle
all the workings. This
type of business
structure is flexible
and feasible in nature
so most of the
entrepreneur adopts
this in their initial
days in order to avoid
complications.
Besides this
When business is
arranged under sole
proprietorship then
this may lead the
same to cover various
strengths such as they
have freedom to work
within business and
have their own rules
of functions and
taking various
decisions. On the
other once in a year
taxes are required to
pay out of profits.
Besides this it is easy
to set up sole
proprietorship as
licencing and
government working
is easy to adhere. The
sole proprietorship is
one of the easiest
forms of business as
there are no
complications that are
involved in setting up
This structure is
having various
disadvantage as well
such as they do not
have multi-
dimensional sources
of finance as their
only source of finance
is working capital of
the organisation.
Moreover the
availability of cash
within the business is
also limited due to
lesser functional
areas. Similarly these
types of businesses
are having limited
number of resources
due to which process
of decision making
becomes harder.
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