Key Sources of Laws for Business Organisations in the UK

This report describes the legal context for business organisations in the UK, including the key sources of laws. It covers different forms of business, their advantages and disadvantages, and legal implications and liabilities. The report also provides recommendations for expanding a sole trader business.

BSc (Hons) Business Management
BMP4002 Business Law
Assessment 2
Report describing the key sources of
laws as the legal context for business
organisations in the UK
Submitted by:
Name:
ID:
Contents
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Table of Contents
Introduction ...............................................................................................................................3
Businesses & Organisations in the UK...................................................................................3
The legal business structure of UK companies......................................................................4
Sole Trader.............................................................................................................................4
General Partnership...............................................................................................................5
Partnership............................................................................................................................6
Limited Liability......................................................................................................................6
Recommendations for IOM Solutions...................................................................................7
Conclusion..................................................................................................................................7
References..................................................................................................................................7
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Introduction
Business law is an systematic approach and the legal implications which are being
required in order to manage the effective business practices. Their is been seen that in today's
time the companies and the business are practicing and managing the growth through further
expansion and for all such conduction there is required the stipulation of all the business laws
and norms. Their is been seen that so many different kinds of working are being practices in
order to gen berate the growth and the revenue which are like the sole trader to all the
international companies and the general partnership firms. Commercial law incorporates all
the legislation as to frame and manage the company (Comfort and et.al., 2018). This report
will provide different forms of business and also their advantages and the disadvantages along
with the legal implications and the liabilities. Further it will also provide the
recommendations for Sam business and their operational activities.
Businesses & Organisations in the UK
There is been analyses that business functions are the prime and the important
element in all the countries in order to generate the revenue. Their is been seen that in UK
governs and manages all the regulations through Companies Act 2006. all the employment
law, contract law are being made as to manage the agreements which are being enforced in
the parties and also the employees are required to maintain the protection of the rights for the
employees and the employers(Rozylowicz, and et.al., 2017) . Their are various applicability
which are required in order to manage the business which are like the separate legal entity,
perpetual succession, common seal, separate legal entity and also the right for the company to
be sue and sued. Whereas, it is also seen that in UK there is been given the non-disclosure
agreement in which employees are being bind to manage the functions. With all the letter of
intent and many more. It is complied that all the work and the effective management of the
employment law is basically to protect and manage the norms and the standards with all the
statutes. In all the companies there is been provided that Directors plays an important role in
managing and implementing the decision making they manage to take all the decisions and
also have certain liabilities in which they are attuned in the non-compliance in prescribed
duties and work. All the decision making are also be given to the prescribed directors and in
case there is any kind of fault which is been seen by the shareholders then all the authorized
directors will also be held liable in order to provide the compensation for the occurring losses
which are declared ineligible for the post. In all the partnership firm there is mainly the
requirement of all the records and the deed for the partnership act 1890 through which all the
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agreements and the working is sustained. Their are two primary documents which are
required in order to manage and form the company they are Memorandum of Association and
Article of Association, this work sin order to form the company and also to manage the
signature and the details of the shareholders at the time of incorporation(Dennis, and et.al.,
2017). MOA maintains the signatures from all the shareholders and the AOA have the written
statement in which all the regulations and the rules are being applied and ,managed for the
directors and the shareholders.
The legal business structure of UK companies
It is been seen that for all the business practices it is important to frame and manage
all the regulations and the working and there is been analyses that all the business will have
to maintain their financial stability, budgets, allocation of resources, marketing sector and all
the different department through which the growth and the generation on the revenue can be
attained. In this case scenario Sam is a sole proprietor who use to manage the business alone
from past 8 years and is managing all the liabilities by his own. Further he needed to expand
the business practiced by investigating about the different methods and the available options
for the expansion of business for selling his electrical parts. Some of the types of business are
been given as under(Taylor, 2019).
Sole Trader
These are mainly all the single form of business practices in which the sole person is
involved to manage and maintain the business functions. In all such sole traders business
their is been seen the least formalities being opted by the firm and they are liable to maintain
all the business functions with the further entitlement and the profit and general liabilities. In
all the sole trader business the decision making and the liabilities are managed through
individual control as that sole person considers to have all the rights and the major liabilities.
It is a cheaper form of business and is pocket friendly for the owners. Their are certain
advantages of all the sole trader firm which are like:
 All the rights and the responsibilities are managed by the sole owner.
 The profit is been taken by the owner itself and along with it all the decision making
are implied by them.
 It do not involve any complex structure in order top frame the business and their
provides that all the internal management and dealing are incorporated by the single
owner.
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The disadvantages of all such business practices are like:
 It acquires and manages all the financial risk in which the working and the effective
management is bot being hold.
 All the general and the income tax are required to be paid by the owner in order to
manage the earnings (Goodhart, and Lastra, R.M., 2020).
 The self assessment and the tax returns art requisite through the national insurance on
time.
 All such regulations implies to manage the penalties and that are taken by the single
owner.
General Partnership
These are mainly all such business practices in which two or more individuals
incorporates and manages all the rights and the liabilities in order to share the common
business and also to manage all the profit earnings. In UK there is been seen that partners are
generally all those person who manages the profit, loss, assets, liabilities, sharing to be
equally distributed in between them. Their bis been seen that general partnership is mainly
same as the normal partnership agreements as it holds and maintain the responsibility, profit
and the loss to be shared in all. The main advantages of all such business practices is it helps
in managing the high amount of investment as all the partners give their shares. Other then
this all the legal implications which are being made through the existing legislation are
managed by the partnership firm(Rosenbaum, 2017). All the taxation are paid by the
company in separate basis where they maintain the accountability of the firm. The
disadvantage are like in case if any of the partner leave the company then this will dissolve
the firm even after the willingness of other partners to manage it. Their is been seen that there
are mainly the sleeping partners or the part time partners who manage the work partly and
gain full share which creates the conflicts in them. In case of death of any of the partner there
is been seen the whole firm will be dissolved. Thus although the partnership firm are
managed in proper manner but there is been seen that certain liabilities and the profit being
shared can create issues too.
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Partnership
It is mainly all such work and the firm in which two or more persons mutually
collaborated in order to manage the work and also to engage in running of the business by
managing and sharing the common liabilities and the loss. The main elements and the
liabilities which are being made for all the primary attributes are generally the formation of
the company and their working. The partnerships are managed by the two or more persons in
order to share the common loss and the liabilities through which the conduction of the affairs
and the profit managed. All the partnership is mainly the working of the companies and the
partners all together to share and manage all the loss, liabilities, shares and the profit equally.
In all such discretion there is been seen that the positive aspects are mainly that their is a
large amount of investment being available in the partnership firms(Graw and et.al., 2019).
Their is been seen that the network and the involvement of owners is vast and managed. The
negative aspect in all the partnership firms are mainly that no person will have the full control
on the firm as all the liabilities and the working is being shared from all. Legal implications
are mainly a critical issue in which the taxation are being paid through all the partnership
arrangements. All the loss and the profit are being shared by all of them and this can also at
time crate a major conflict in which all the partners in case has not made any of the issue still
being affected. The dissolution of the firm are being made through all the leading of the profit
and the loss.
Limited Liability
It is mainly all the companies in which the liability of all members are being
restricted to limited amount and it acquires and manage the name. The shares in all such
companies are not being issued and managed in the general public and it implies to have the
acquired management and resources. This business will not require any kind of mandatory
capital and the asset formation through which all there incorporation in the business are
managed through all the general requirements(Hardman, 2021). The drawbacks in all such
firms are managed to limit the prescribed areas of the shareholders. It also restricts all the
issuance of the firm with the general public. It implies all the status of all the separate legal
entity through which the limited amount of the shares are being made and invested by the
partners. All the partners in all such companies are not being held fully liable for the loss and
the issues being shared. Their implies that all the no joint liability will be made in any such
companies as their implies that all the partners will have the particular amount of investment
according to the loss and the profit being shares and invested. All much criminal offenses are
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co-jointly being made responsible to an extent in which the liabilities will be according to the
investment(Delmon, 2017).
Recommendations for IOM Solutions
It is being recommended that as Sam is mainly managing the sole trader business in
which he needs to expand the firm or the company. Their is been seen that Sam can initiate
and manage the Limited Liability partnership(Clarkson and Miller, 2020). As after the prior
analyzing their can be seen that it will give the business a general security and the company
can be managed effectively with all the partners and when the partners are managing the
shares in limited manner. As this will ensure and provide the maximum security and also
maintain the sole control through all the adequate management. In all such business Sam can
gain the maximum investment and the shares will be managed in limited basis.
Conclusion
It is concluded from the above report that Their are different kinds of business
practices which are being managed according to the regulation as and the rules been provided
by the UK government. Their is been implied that Sam can thereby maintain the limited
liability company as this will incorporate and maintain the limited amount of share and the
taxation are being managed in separate manner. Another major issue and the concern will be
that in all such business the engagement of the company or the firm will be maintained
through variable shares and investment. Further it is also provided that business can be opt
and managed through all the necessary sharing the management.
References
Clarkson, K.W. and Miller, R.L., 2020. Business law: Text and cases. Cengage Learning.
Comfort, M., and et.al., , 2018. Partnership after prison: Couple relationships during
reentry. Journal of Offender Rehabilitation. 57(2). pp.188-205.
Delmon, J., 2017. Public-private partnership projects in infrastructure: an essential guide
for policy makers. Cambridge university press.
Dennis, C., and et.al., 2017. Models of partnership within family‐centred care in the acute
paediatric setting: a discussion paper. Journal of advanced nursing. 73(2). pp.361-
374.
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Goodhart, C.A. and Lastra, R.M., 2020. Equity finance: Matching liability to power. Journal
of Financial Regulation. 6(1). pp.1-40.
Graw, S., and et.al., 2019. Understanding business law. LexisNexis Butterworths.
Hardman, J., 2021. Reconceptualising Scottish limited partnership law. Journal of Corporate
Law Studies. 21(1). pp.179-217.
Rosenbaum, G.O., 2017. Female entrepreneurial networks and foreign market entry. Journal
of Small Business and Enterprise Development.
Rozylowicz, L., and et.al., 2017. Recipe for success: A network perspective of partnership in
nature conservation. Journal for Nature Conservation, 38, pp.21-29.
Taylor, S., 2019. Property Investment Types–Residential vs Commercial.
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