Key Sources of Laws for Business Organizations in the UK

BSc (Hons) Business Management
BMP4002 Business Law
Assessment 2
Report on describing the key sources
of laws as the legal context for
business organisations in the UK
Submitted by:
Name:
ID:
1

Table of Contents
Introduction .............................................................................................................................3
Businesses & Organizations in the UK......................................................................................4
The legal business structure of UK companies.........................................................................5
Sole Trader...........................................................................................................................5
General Partnership.............................................................................................................5
Partnership.......................................................................................................................... 6
Limited Liability....................................................................................................................7
Recommendations for IOM Solutions.......................................................................................8
Conclusion................................................................................................................................ 8
REFERENCES............................................................................................................................. 9
Introduction
Business is an activity which get affected through various internal and external
factors. Business covers the wide means, the activities of businesses are dependent
upon various other sectors and departments. Regulating the business activities is not
2

an easy task it require a legal framework or a body which support the functioning of
business activities. In starting the business, owner or the members of an organization
don't feel such stress but after the business demands controlling and legal path top
run at that time manager, owner or the board of directors of the company has to run
the business organization as per the laws and rules. In the United Kingdom doing
business is an easy task as there is no such complicated rules and laws for doing
businesses (Bai and et.al 2021). The parliament of UK gave its best efforts at the
time of introducing the legal act which regulates the functioning of all the business
organizations in UK. In UK there are mainly four kind of business structures which
are running smoothly and profitability. These different business structures are; Sole
trader, Partnership, General partnership and Limited Company. To provide them a
path and make all these business structure legal, in UK parliament passes the
Company Act 2006. it becomes the main act which prescribe all the duties and right
of business organization and of their members, managers and board of directors. In
this report also, all the business structure will be discuss along with their merits and
demerits. This has to be done for fulfilling the requirement of report which is to
provide the recommendation for a sole trader who engage in selling the electrical
parts, for expanding the business through switching the different and suitable
business structure.
Businesses & Organizations in the UK
There are different types of business structure available in a business market
which carries different features and characteristics. Nature of each business
organization is different and it get decided by its structure and define by its
functioning. An organization can be corporate or incorporated and it would get decide
through its dealing and and its size(Iris and Lam, 2021). There are mainly four types of
business structure which has different nature and that nature will get decide through
its working areas, its size. There is a simplest form of business structure which
doesn't carries much obligations and administrative responsibilities which decide that
it has a simple and formal nature. If the Limited Company business structure got
discuss it can be said that it has many obligations to perform and also has to fulfill
the administrative responsibilities which are many. For such type of business
structure it can be said that it has complicated structure and also the nature as there
3