BMP4002 Business Law: Legal Framework and UK Business Organizations

This report provides an overview of the legal context for business organizations in the UK, focusing on key sources of law such as company, contract, employment, and tort law. It examines different legal business structures, including unincorporated organizations like sole proprietorships and partnerships, and incorporated organizations like private and public limited companies. The report details the advantages and disadvantages of each structure, including aspects related to registration, liability, and funding. It further discusses the role of legislation like the Companies Act 2006 in shaping the legal framework for businesses. The report concludes with recommendations for IOM Solutions, considering their potential expansion into a partnership.

Business Management
BMP4002 Business Law
Assessment 2
Report describing the key sources of
laws as the legal context for business
organisations in the UK
Contents
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Table of Contents
MAIN BODY ................................................................................................................................3
Businesses & Organizations in the UK........................................................................................3
The legal business structure of UK companies..........................................................................5
Sole Trader.............................................................................................................................6
Partnership............................................................................................................................7
General Partnership...............................................................................................................7
Limited Liability......................................................................................................................7
Recommendations for IOM Solutions........................................................................................8
Conclusion..................................................................................................................................8
REFERENCES...............................................................................................................................9
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Introduction
Business law are based upon those perspectives which leads over
establishing business organizations as per legal standards existing within country.
These laws deals with formation of structure used in order to conduct activities
related to business. These laws helps in developing business organization with the
approach which makes goals and objectives accomplished in successful manner.
The law covers different kinds of legislation leading upon conducting business in
more effective manner. The law is used in order to develop impact over various
business functions and its process. Also business laws are used for developing
business organization which makes business conducted in legal and effective
manner. The report deals over business organizations and concepts related to it.
Further, legal structure of business organization within United Kingdom has been
explained with various kinds of business organizations like sole trade and
partnership. In the end solution is provided over IOM solutions.
MAIN BODY
Businesses & Organizations in the UK
Business organizations basically helps in dealing with various kinds of
commercial and corporate activities helping in covering business and its functions in
more effective manner (Courcelles, 2019). The organizations lead upon developing
capability over business organizations which helps in conducting business with more
effectiveness. These organizations lead upon setting standards that makes business
organizations formed by making business related standards and rules set for them.
The organization deals with trade and money activities through applying legislation
and laws in there various process. These organizations has helped United Kingdom
in setting business objectives through legal aspect. Also business organization used
different laws that makes business accomplish legality within its process. There are
three main laws which are used by business organizations like contract, company,
employment and tort law. These laws makes business operations conducted with
proper guidelines and regulation helping in forming policies within an organization.
Company laws are based over those perspectives that makes business organization
form strong structure making business function properly. The law has provided one
strong legislation that is Companies Act 2006 acting as permanent legislation. This
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act has made guidelines and rules developed that makes work develop as per legal
standards of United Kingdom. Also this legislation has proposed that memorandum
of association and article of association are mandatory to be created in order to
establish business organization. Further, act has made directors appointment done
for handling business by following there rights and duties which has been given
within the act. The act also made process of business organization formation easy
making business activities conducted effectively(Dickinson, 2017). Another law used
by business organization is contract law that is based upon forming agreements in
legal manner. The agreement formed between two or more then two organizations.
According to contract law agreement formed should take place between two or more
then two persons. Also contract holds validity in written and unwritten manner that
makes contract to be expressed and implied in nature. These laws allows agreement
become valid as per contract through making legality achieved as per law. As per the
law various elements are used for forming contract these elements are offer,
acceptance, obligation, legality and validity. The element holds importance as
absence of one element makes contract not been formed. First element is offer
related over idea presented by another party with an intention over initiating contract.
Then comes second contract which is based over ideologies presented by one party
to another. Under it ideology behind contract that has been shared between partners.
Third element is obligation related over rules and regulations which has been created
after having discussion over contract. In this both parties have common point of
discussion that becomes obligation or rules over contract. Fourth element is legality
which makes contract formed in legal manner within the eyes of law. Then comes
fifth element which is validity in this aspects of contract has been covered which is
used for providing contract legal base as contract cannot be formed over illegal
activities which has been banned by government. Employment laws are used by
business organization in order to create employees satisfaction and deal with rights
of employees. In this laws various legislation has been formed making issues related
to employee solved effectively. The come law of torts that is an civil law which is
based over various aspects of business organization which is based upon nuisance,
negligence, tress pass and helps in making identification done over vicarious liability.
These are those liability based over principle which says that “master is held liable
for act committed by its servant”. This principles makes is used for making employee
and employer liability develop over act committed by employees. All the laws are
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used by business organization of UK with more effectiveness that makes legality of
business developed as per legal standards set by government making business
policies created more effectively.
The legal business structure of UK companies
According to legal structure of business organization various aspects has
been covered that makes business conduct various legal activities in more effective
manner. Under this legal structure of UK business organizations are of two types that
are incorporated and unincorporated organization. In unincorporated business
organizations less complex process has been used that makes business conducted
without any problem. Under it an organization makes less involvement of
government which helps in providing stability covered over business operations
taking place in United Kingdom. The organization has been covered within
unincorporated business that is based over sole proprietor and partnership. These
organizations are important making business development done according to nature
of business. The organization makes expansion of business covered within
unincorporated organization. In this two main organizations are covered which is
sole proprietor and partnership. These organizations re important as it makes
business developed as per nature of business. The organization helps in starting
business making expansion done with low investment(Fairchild, and et. al., 2018).
The organization has formed as per nature of business which makes organization
star in more effective manner. Under incorporated business organization complex
process involved making formation of business organization done at local level.
There are two main kinds of organization that has been covered which are private
and public organization. Private organization: These organizations has Private
Ltd in the end of its name and shares are not for sales to public. In order to make
registration of these organization done all documents are collected and then
submitted to Companies House making registration process completed more
effectively. The organizations are managed by directors as the appoint for making
business activities performed effectively. Funds are arranged with he help of loans
and debentures. Public organization: these organizations uses Public Limited in it
name and shares are also sold in public. The organizations have various owners
and all aspects related upon handling more effectiveness. The organization having
multi ownership which makes and management done by them. In order to make
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registration done various documents like digital structure of owner, memorandum of
association and important document required to be collected and submitted to
Companies House for further registration. In public limited organization there are
more then two directors present with two company secrete. The organization with
two over more then two directors are present with two company secretariat. The
organization mainly work for welfare of society this makes social issues solved more
effectively. The organization mainly work upon welfare of society making social
issues solved more effectively. Managing of funds is done by owners and
stakeholders related to business. Funds are arranged through government
institution, health programs, community services, restoration programs, public
service programs, and even environmental programs. These are the organizations
which are included within legal business structure of United Kingdom. Further,
discussion is done over business organizations covered within unincorporated
business organizations and are related to legal business organization of United
Kingdom.
Sole Trader
These organization relates with various kinds of business conducted with
effectiveness. Under it organization makes business conducted in more effective
manner. As per the working of this organization owner of business perform all kinds
of work done by single owner as they hold responsibility regarding business
activities(Kubacki, Szablewska and Kennedy, 2019). The owner of these
organizations are termed as sole proprietor and handles all work by themselves
which is related to business. Further, process of registration takes place with the
help of INHRC number and name has been provided only by making business
identification possible. Since management of these organizations has been done
only by owning business. Funds are arranged with personal sources like family
members and friends or any personal relationship. The organizations holds
advantages like profit which has been earned has been kept by owner themselves
making profit stored effectively over various process of business. Also it is hold by
sole proprietor which makes formation process makes establishment done within no
time. These organizations are free liability of tax and only person tax is to be given to
owner. Disadvantage of organization are funds are not arranged on time which
makes working of organization collapse at time. Also organization face heavy loss
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which at time leads over business to close. Then comes disadvantage which is
based over unlimited liability this is one of the most disturbing aspect of sole
proprietorship firm. The occurrence of loss an proprietor requires to meet needs of
liability at any cost which has been implied making needs occurred in terms of
personal asset used for discharging liabilities.
Partnership
These business organization are formed with the help of business
organizations which helps in making two or more then two persons. According top
these kind of business organizations are formed with the help of two or more then
two persons(Phillips and Moutinho, 2018). According to this both persons come
together for forming business organization like partnership wit common motive to
earn profit making objectives to be fulfilled in more effective manner. The
organizations makes business organization expand themselves in more effective
way. These organizations are of two types which has been given as follows:
General Partnership
These organizations are part of partnership which are formed with the help of
two persons making motive performed business and earned profit through business.
In general partnership basic structure of partnership has been followed which
involves all kinds of investment done by partners themselves. This kind of
partnership makes business covered over different perspective based over risks,
costs, benefits and responsibility upon running of business organization. The
organization has been handled by partners themselves. The process of formation is
simple which includes generating of INHRC number and agreement is created only
when legal perspective is included(Shanahan and Hopkins, 2019). The organization
managed by partners themselves makes work done over formal obligation with
effectiveness. Funds are collected by the partners. Advantage is based over less
formal obligation and burden is shared by partners. Disadvantage of organization is
based upon legal status making business organization face over legal issue in future.
Then comes another disadvantage that is based upon death of partner.
Limited Liability
These form of partnership firm helps in making business work done with the
help of partners handled work as per investment done by partners according o
investment done by them.
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Recommendations for IOM Solutions
In relation upon case scenario it has been observed that IOM solutions has
willingness over making expansion is partnership which makes business activities
conducted effectively(Surdam,, 2020).
Conclusion
From the above discussion it can be concluded that business laws are laws
that has been used in order to perform various functions which makes business
established effectively. Through these laws legislation and act has been created for
making business conducted more effectively. Then the report explained about
various kinds of business organization and provide overview about legal structure of
business organization. In the end for doing expansion business type has been
selected.
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REFERENCES
Books and Journals
Buchheit, L.C., 2019. Ethical considerations in the representation of sovereign
clients. In Research Handbook on Law and Ethics in Banking and Finance.
Edward Elgar Publishing.
Burri, T., 2021. The New Regulation of the European Union on Artificial Intelligence:
Fuzzy Ethics Diffuse into Domestic Law and Sideline International Law.
Available at SSRN 3865149.
Conrad, C.A., 2018. Ethics in Business Education. In Business Ethics-A
Philosophical and Behavioral Approach (pp. 327-337). Springer, Cham.
Courcelles, D., 2019. The Ethics of the Merchant in the Islamic Faith: From Ibn
Khaldoun to Islamic Finance.
Dickinson, A.L., 2017. Recent Ethics Opinions of Significance. J. Legal Prof., 42,
p.291.
Fairchild, and et. al., 2018. 14. Health Justice. In Public Health Law and Ethics (pp.
587-612). University of California Press.
Kubacki, K., Szablewska, N. and Kennedy, A.M., 2019. Guest editorial: Social good
and ethics in social marketing for wicked problems. Journal of Social
Marketing, 9(4), pp.485-489.
Phillips, P. and Moutinho, L., 2018. Business ethics. In Contemporary Issues in
Strategic Management (pp. 178-194). Routledge
Shanahan, K.J. and Hopkins, C.D., 2019. Level of agreement between sales
managers and salespeople on the need for internal virtue ethics and a direct
path from satisfaction with manager to turnover intent. Journal of Business
Ethics, 159(3), pp.837-848.
Surdam, D.G., 2020. Examples of Mid-Nineteenth-Century Business Ethics in
America. In Business Ethics from the 19th Century to Today (pp. 71-99).
Palgrave Macmillan, Cham
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