Key Sources of Laws for Business Organizations in the UK

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:
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Contents
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Introduction
Business laws are those laws that is used in order to set rules and regulations
which helps in forming business organization with proper legal framework prescribed
for it. As per business law different aspects in relation to goals and objectives of
business is covered within it. Further business law leads towards making business
organization perform its activities with full perseverance helping in growth and
sustainability in particular market. In this file various aspects in relation to business
organization has been covered. Then in the end different business organization like
sole trader and partnership has been discussed.
Businesses & Organisations in the UK
Business organization are those organizations that has been formed to make
business done in smooth and effective manner. Further business organizations in
order to improve business environment used various laws which are company law,
contract law and tort law. These laws helps in performing different business activities
in more effective way(Fairchild, and et. al., 2018). According to company law different
aspects in relation to working of business organization is covered. These laws are
covered within Companies Act 2006 which provides more precised guidelines in
relation to forming and running of business organization. Under the act it is
mandatory to form memorandum of association and article of association. Then
under these laws role of director has been specified in a way that they are owner of
business and all decision is taken by them. Then comes contract law which deals
with formation of agreement in relation to monetary transaction. In contract law
elements is used which are offer, acceptance, obligation, legality and validity. This
makes contract formation possible, it is better with the help of example that is ABD
Ltd and PDP Ltd willing to come together for making agreement of supply between
them. So, for this purpose contract laws is to be used so that agreement formed cam
attain legality within the eyes of law. Also tort of negligence is applied with vicarious
liability which makes employer liable for act done by employee. As under vicarious
liability principle is applied which says “master is held liable for act done by its
servant. Then comes employment law which deals over rights and duties of
employees in these laws various other acts like Employment right act 1996, Equality
law 2010, National minimum wags act 1998 is covered with health and security act of
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employees is covered. Together these laws makes employees satisfaction created in
more effective manner by developing strong triparte relation between employer and
employee. These laws helps an organization in analysing various factors which
hinder's the growth of an organization within particular market situation. Further
business organization through such laws is able to establish itself with more
effectiveness.
The legal business structure of UK companies
Sole Trader: These organizations are most commonly used businesses
organization in order to execute business. As per such organization only single
owner exists known as sole proprietor. Responsibility of such organization is handled
by one person only. Such organization provides room to start ups for expanding
themselves within market. Further sole proprietor is known as individual
entrepreneurs within which single person exists. This is simplest legal entity present
within an country. The formation process of these organization is also very easy and
does not include any document within it. They are not required to get themselves
registered within Companies House. Under the establishment process only INHRC
number is required to be generated through an self declaration to start a business.
Name should be there only to start business. There are certain advantages and
disadvantages of sole trader which has been explained as follows:
Advantages of sole proprietor are:
 Easy and inexpensive process: It is one of the biggest advantage of such
organization. As per this such business organization formed very easily and
money involved is also less. Also sole proprietor includes minimum or no work
in relation to its registration which make business establishment possible in
effective way(Dickinson, 2017).
 Few government regulation: Sole proprietorship has very less government
interference within its work. So, they are not required to spend time over
resources and government requirement which make its easy to operate. This
reduces various complexity that can arise in relation over sole proprietors
working.
 Tax advantage: These organizations has tax advantage in an way that they
are not required to pay tax only personal tax is paid by the owner of business.
It is paid out of profit that is earned by owner themselves from the business
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