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

The structure of business
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INTRODUCTION...........................................................................................................................3
Question One:..................................................................................................................................3
a) Construct a table to show the various legal statuses of businesses. Identify the relative
strengths and weaknesses of these legal statuses...................................................................3
b) Considering your business idea, identify and evaluate the strengths and weaknesses of
THREE sources of finance available to your business start-up.............................................8
Question Two:................................................................................................................................10
Identify three sectors within the UK economy in which a business can operate. What are the
differences between the three sectors? Comment on their value to the UK economy.........10
Question Three:..............................................................................................................................12
Identify at least two HR policies and comment on their importance to the modern workplace
..............................................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
Business structure is defined as the legal structure of an organisation which is basically
organised in given jurisdiction (Berrey, 2021). There are different type of business structures are
just Partnership Corporation, sole proprietorship, Limited Liability Company and more.
Understanding of this structure will allow an individual to perform their business operations with
certain benefits and weaknesses associated to every legal structure. Present report is conducted
on setting up of a new business start-up in the provinces of United Kingdom. Report includes
strengths and weaknesses of different legal status and sources of finance. Furthermore, different
sector with the UK economy along with their value is included in this report in addition with HR
policies which essential in modern workplace.
Question One:
a) Construct a table to show the various legal statuses of businesses. Identify the relative
strengths and weaknesses of these legal statuses
Legal Status Strength of legal
status
Weakness of legal
status
Business Type
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 Legal status for
this business
incorporates
various entities,
including their
liabilities, assets
and resources.
 Similarly, these
sorts of business
start-ups are
mostly sole
ownership
type’s lawful
status in which
only one
individual is the
proprietor of the
business.
 The major
strength of sole
proprietorship
is that it is
having best
legal status and
is easy to set
up. In this new
business start-
up can perform
their business
operations with
less paper work
and easy
handling of
policies and
taxes (Causes,
2021).
 Other strength
of sole
proprietorship
is that in this
business
owners have
benefit of
enjoying
overall control
of business
profits. In
addition to this
 In terms of
weaknesses of
legal status of
sole
proprietorship
it has been
identified that
in this owners
are fully liable
of the losses.
Furthermore it
has been
identified that
self-
employment
tax is
applicable to
sole
proprietorship
and business
continuity
comes to an
end with the
departure or
death of the
owner.
 In addition to
this another
weakness of
this legal
For PLC business
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