Nature Formation and Management of Business Organizations in the UK

BMP4002
Business Law
Assessment 2
Report describing the key sources of
laws as the legal context for business
organisations in the UK
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Contents
Table of Contents
Introduction .............................................................................................................................3
Businesses & Organisations in the UK......................................................................................3
The legal business structure of UK companies.........................................................................5
Sole Trader...........................................................................................................................5
General Partnership.............................................................................................................5
Partnership.......................................................................................................................... 6
Limited Liability....................................................................................................................6
Recommendations for IOM Solutions.......................................................................................6
Conclusion................................................................................................................................ 7
References:...............................................................................................................................8
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Introduction
The business term is being explained as a act from which there is exchange of
services and goods in lieu of consideration. Mostly the business is done for earning
more and more profit for business enterprise through selling services and goods
which is being manufactured by an enterprise. There are legislation which deals with
controlling and directing the functioning of business. The corporate law consists of
health and safety law, law of employment, protection law and many more, these laws
are applicable on in each business organisation which runs in a country. These law
are termed as business law(Thomson, 2022). However, the business enterprise have
to be registered as according to the law of nation. But this have different kind of
business which need not be registered as like sole proprietorship. This report
explains about many types of business. This also mentions for their merits and
demerits. This report also recommend IOM Solution for choosing best fitted type of
business in the last of the report after discussing all type of business.
Businesses & Organisations in the UK
In United Kingdom, the business as with its management is done as
according to the Companies Act of 2006. This act explains formation of a company
with their procedure. The functions of business orgainsation with the assistance of
workers. So, work done by employer and employees do have ethics for smooth
functioning of a company. Their conduct is mentioned in the written policy of the
enterprise. The law provides that no employer can do unfair dismissal in favor of
workers(Obiri-Korang, 2021). The enterprise have different features such as
perpetual succession. The perpetual succession describes that an enterprise would
continue to exist even after the death or dismissal of any member of shareholder or
board. The company do also have separate legal entity. With this a company have
right to sue and can be sue by any one.
The workers unprofessional behavior and lack of responsibilities in carrying
out business, the operations make emergence to different liabilities in an enterprise.
One of these liabilities in this case is vicarious liability which arises within business
concern and operates at larger scale. The liability start when a worker behaves or
acts deceitful or committed in any unlawful act even when being a part of
administration as their workers, then liability comes on employer as this is held
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