Types of Business Organizations and Legal Consequences for IOM Solutions Limited

Business Law
Contents

INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Explanation of various types of organizations available for the reorganization of the business that is
IOM solutions limited..............................................................................................................................3
Legal consequences of each business entity............................................................................................5
Recommendation for IOM electronics for selecting appropriate business...............................................7
CONCLUSION...........................................................................................................................................7
INTRODUCTION

Business law is the governing body which has laid down the rules in order to regulate the
reciprocation of the commercial dealings between the individuals. It is also known as Mercantile
Law or Commercial Law. It covers all the statutes that talks about how to run a particular
business and its incorporation. It encompasses various regulations that is obligatory on the part
of every business corporation to follow them. It also covers the licensing policy and rules which
is needed when a business unit wants to expand or run its business in other state. It also supervise
the buying and selling of manufacturing goods, corporate agreements and other business
operations. This report will evaluate the study of IOM solutions limited that is supplying
different electrical parts to the garages. Sam is the owner of IOM ltd. who is indulged in this
business from eight years. Sam is unable to run the business under pressure as the business was
developing from last two years. Further, this report will explain the different types of
organizations available to reorganize IOM solutions. It also contains the legal consequences for
each organization. And it also includes the suggestions to identify the best suitable type of
organization for Sam.
MAIN BODY
Explanation of various types of organizations available for the reorganization of the
business that is IOM solutions limited.
The business organization of Sam that is IOM solutions limited is experiencing growth in
the market from past two years which is creating more pressure upon Sam, who is a sole trader.
Now it is not possible to handle the demands of the customers on the large scale. The business
also needs an expansion so as to ensure the future development and growth of the company.
There is a huge competition in the outside world related to business. And it is very much
required that the particular business unit must broaden its horizons in order to meet the desires of
the customers. A company has different options which can help in the administering the
operations of a company with its diversification. It is very crucial for a business organization or a
company to choose the appropriate business type(Nyoni, and Hart, 2018). All the companies
holding their business in national or international market must focus on selecting the suitable