Legal States, Funding, Sectors and HR Policies: Business Report

This report delves into the structure of business, examining different legal states of business including public, private, and charitable organizations, along with their strengths and weaknesses. It also explores various sources of funding for startups, such as venture capital, bank loans, and angel investors, and their associated advantages and disadvantages. Furthermore, the report analyzes the key sectors of the UK economy, including the primary, secondary, and tertiary sectors, detailing their functions and contributions. It also highlights the significance of human resource policies, specifically equality and diversity policies, in the modern workplace. The report concludes with a summary of the findings and references used.

The Structure of
Business

Contents
INTRODUCTION...........................................................................................................................................3
QUESTION 1.................................................................................................................................................3
Different kind of legal state of business along with its strength and weakness for the organization. ....3
Measure the origin of funds that are available for the start- ups business concern along with its
strength and weakness............................................................................................................................6
QUESTION 2.................................................................................................................................................7
Various kind of sectors that runs in the UK economy and deviation between these sectors. Also give
their value in the UK system....................................................................................................................7
QUESTION 3.................................................................................................................................................9
Identify the two policies of Human resource along with its importance in the modern workplace........9
CONCLUSION.............................................................................................................................................10
REFERENCES..............................................................................................................................................11

INTRODUCTION
The term business concern can be defined as an act which regard to minimum two
number of persons namely the buyer and the seller. The buyer is the person who purchases some
commodity or service from the other person. The seller is the person who sells some commodity
to the other person. There are two factors that imp[acts the business activities. These factors
includes the internal and the external factors of the environment(Bridge, Murtagh and O'Neill,
2020). The external factors are related to society, law, politics, etc. this report would outline the
sources of funds, sectors of economy of the country. It would also discuss about the human
resources related policies and regulations for an organization. It would also discuss about the
various types of businesses that is being operated in United Kingdom.
QUESTION 1
Different kind of legal state of business along with its strength and weakness for the
organization.
A business is a task that involves various types of activities that is to be held in the
company in order to achieve its aims and goals of the company in the given specified time
period. The different kinds of businesses are discussed as follows-
Kinds of businesses Legal statuses Strength Weakness
Public
organizations: the
public organizations
are those that are
being controlled
and run by the
government of the
country. Its main
objective is to do
social welfare for
There are three types of
public organizations that is
framed by the government
which is mentioned below-
 Central- These
businesses are
mainly controlled
by teh central
governmnet of teh
country.
 It enhances
welfare of the
society as this
is related to
the work of
the
legislature.
 It has
autonomy
wherein it
 The main
demerit of
this is that
there is huge
level of the
interference
with relate to
teh politics of
the country.
 There are

the country.
 State- These
businesses are
owned, controlled
and operated by
state government of
the country.
 Local- These types
of business
arrangements are
controoled by the
local district
authorities of teh
government of the
country(Cameron,
et.al, 2019).
enjoys the
independency
of the
organisations.
different
scenarios
through
which the
consumer
interest is
avoided.
Private
organizations: The
private institutions
are the institutions
which are
controlled by a
single individual or
group of individuals
as the case may be.
The main aim of the
private business is
to gain more and
more money in the
country.
 Sole
proprietorship- It
is owned and
manged by a single
indiviadual. The
whole load is on
the head of one
individual.
 The owner of
sole
proprietor is
held capable
to pay the
private
income tax
 It also
includes the
personal
liability of
the proprietor
for the debts
of company.
Companies- it is a kinds of
businesses are separate
entities that is separated
from the businessman and
are also called as unreal
personality.
 It enjoys the
limited
liability
 It too has the
perpetual
succession
 It lacks in
the
confidentialit
y.
 There are
various legal
requirement
Partnerships- it is the  It shares the  It also

business entities are
controlled and managed by
two or more people who
are known as the partners
of the partnership firm.
the decision
making
power and
duties with
relate to it.
includes
different
personal and
unlimited
liability of
the partners
against the
institution.
Charitable
organizations: it is
the non- profit
enterprises that is
mandatory to get
certified in order to
get the status of
charitable
arrangement from
the system of the
country.
 Charitable trust- it
is the kind of
businesses are
operated by the
small group who
are who known as
the trustees of teh
organisation.
 The asset of
charitable
institution
could not be
used for the
other purpose
 It needs the
compliance
with
regulatory
requirements
that would
involve the
return
preparation,
accounts, etc.
Voluntary
organizations: it is
not framed for
earning profits. It is
managed by the
volunteers of the
specific
organization.
 Trust- It is
basically operated
and governed by
trust deed.
 Association- this is
framed by teh
group of persons on
their own choice.
 These
business
arrangements
has to provide
the relief
from the
taxes.
 It has the
public
There is more of the
time commitment . It
also lacks in the
economies of scale.

recognition
and trust
which would
help the
voluntary
arrangement
in the
organisation.
Measure the origin of funds that are available for the start- ups business concern along with its
strength and weakness.
There are various origin through the start-up businesses can increase its finances in the
UK. These are discussed as follows-
 Venture capital- This is the origin of finance through which the stakeholders supports the
new entrepreneurs in the market. They used to do investment in the capiatl of these satrt
ups in order to gain long term profits from the investments(Christophers, 2022).
Strength- It is focused to provide a chance to the organization in order to expand and grow.
Moreover, the investors has the affirmative approach towards the success of the institution as
they have invested their capital in the company.
Weakness- The venture capitalistic offers broad finances for the enterprise concern startup so
they have equity in the business so when the organization flourishes, the income are separated
between the enterprise r and venture capitalistic. It is too subject to become the part of the board.
 Bank loans- this is the good option in teh present day scenerio. This is because teh banks
provides very easy loans to teh business on very effective intrest rates as compare to teh
other sources of finance.
Strength- The main benefit of this is that the amount of the finance is very huge so that the
entrepreneur can use it in whichever way it wants in the business. It is also very cost effective
from the other sources of funding.

Weakness- The main weakness of bank loan is that it requires regular payments of installments
of the loan on the monthly basis. This would require that the businesses has to be provided with a
more money for paying the extra amount of interest on loan to the banks(Davies, 2019).
 Angel investors- The angel investors are the persons who invests huge amount of money
in teh business as they have more experience about that specific business. These angel
investors invest money along with also share their experience with the enterprenuers in
order to make the start ups sucessful and flourshing in the market.
Strength- The strength is that it provides way to operate the business to the entrepreneurs. This
would help the entrepreneurs in making good decisions for the organization. Moreover, the angel
investors also takes the part in the decision making process of the organization.
Weakness- The guidance that is being provided by the investors would hinder the total control
of the entrepreneur on the organization. This is because the angel investors takes part in decision
making along with the entrepreneur of the company. Moreover, there would be lack of
confidentiality in this case(Grout, 2020).
QUESTION 2
Various kind of sectors that runs in the UK economy and deviation between these sectors. Also
give their value in the UK system.
The economy of the country is basically interdependent on the three sectors. These three
sectors are very essential for any economy of the world. This is because it is a chain through
which the money and the goods are being exchanged between the individuals in the market.
These three sectors are discussed below as follows-
 Primary sector- The primary sector is the main sector of every economy. This is becuase
all the other two sectors are dependent on teh primary sector of teh country. Moreover,
the primary sector provides for the raw material to the industries. The agriculture come in
the primary sector. The mining and fishing are also the examples of the primary sector of
the economythe primary sector is the base for all the other sectors of the economy.
Moreover, if there is disbalance in the primary sector, then it would directly impact the
growth of other sectors of the economy(Horton, 2022).

 Secondary sector- The secondary sector is the middle sector of the economy. This sector
is engaged inthe manufacture of the goods that are being produced from the primary
sector of the economy. The secondary sector would also include all the mnaufactured
goods of the industries. It includes the mobile phones, packed food items, etc.
 Tertiary sector- This sector is the last sector of the economy. This sector frames the
bridge between teh primary and the secondary sector of the economy. The tertiary sector
is subject to the services and the transportation of the produced goods and the services.
This sector is also known as the service sector of teh economy. The banking and teh
financing activities comes under the tertiary sector of the economy(Mason and Minerva,
2022).
Basis Primary Secondary Tertiary
Meaning It means extraction of
raw materials.
It is the process of
conversion of the raw
substantial into final
product.
It includes the work
like hospitality,
leisure, retail, etc.
Working It is unformed sector
and also involves
using traditional work
methods.
This is the organized
sector and hence uses
more reliable
technique of
manufacture.
It makes the use of
modern day logistics
for operating its
functions in the
business.
VALUE IN UK ECONOMY
The United Kingdom is the one of the big economy in the globe. It also comes in the 6th
position in terms of quality of lifestyle enjoyed by the individuals. The UK office for National
Statistics furnishes that the tertiary sector of the UK is one of the biggest sphere that accounts
more than three quarters in the UK. Moreover, the primary sector frames only of 0.61% while
the secondary sphere frames less than 17.41% in the GDP of UK.
As per 2020 statistics, the manpower distribution in the UK with respect to all the sector
was 1.01% in primary sector, 17.66% in manufacturing sector and 81.34% in the service sector.
It can clearly be ascertain from this data that the tertiary sector contributes the largest part in the

income of the economy in United Kingdom. The next comes the secondary sector and the lastly
comes the primary sector of the economy.
QUESTION 3
Identify the two policies of Human resource along with its importance in the modern workplace.
The human resource administration is the main important part of every organization that
would involves in managing the worker in the more effectual mode. The HR plan of action are
the written rules and regulations that are applicable on all the members and the staff of the
company. It contains about the rights and duties of both the employer and the employees of the
organization. These policies must be timely communicated to all the workers of the company.
This would aid in non exploitation of the rights of the workers by the employers of the company.
These policies are also created to maintain the harmony in the society. The vital function of the
human resource is to solve the grievances of the employees of the company. The human resource
department must also solve the problems between the employees of the company. Moreover, the
employees have the prime right to enjoy these human resource policies of the company. Some of
these human resource policies are discussed below as follows-
 Equality and diversity policy- The equality means that every individual is equal in the
organisation. There must be no difference created by the employer between the
employees of the company. Moreover, it also explains that the employees must be treated
with all the opportunities irrespective of any religion they belong to. The provisions for
the equality is being contained in the Equality Act, 2010 of the United Kingdom. The
Equality Act provides for the nine grounds on which basis no unequal treatment is done
between the employees. The grounds are called as the protective characteristics. These
contains that no difference on the basis of caste, religion, sex, pregnancy, maternity, etc.
The diversity policy implies that the individuals must not be discriminated on the basis of
diversity in the organisation. In addition to this, the Employment Rights Act, 1996
provides for the rights and the duties of the workers and the employees of the
company(Micah, et.al, 2018).
 Health and safety- The health is teh main important policy for the company. This means
that the company must frame the policy which is realted to the health of teh individual.

Moreopver, if teh health of teh employees is not good, then they would not operate good
in the company which would effect the production of teh comapny as a whole. There are
various regulations atht is related to the haelth of eth employees. These laws includes the
Health and Safty Act, 1948. This act provides that every employee must be given
protective tools and clothes if he is being involved in any hazardous act whicle
producingf and operating in the comapny. Moreover, the employees are also elegible for
the casual sick leaves which are paid in case of the sickeness of the employee. The
employer must ensure that the safe and healthy environment is being provided to the
employees. In addition to this, the safe and healthy environment would help the employee
in work more effectively and efficiently in the organisation. This woulsd alo result into
the increase in the profit and the income 0of company if the employees are healthy for the
comapny(Sweeting, 2022).
CONCLUSION
The above report concludes about the concept of business. It explains about the types of
business organization. This report also summaries about the different sources through which the
funds can be created for the organization. It summaries about the various factors that impacts the
growth and the development of the company. Moreover, this report also concludes about the
various external factors such as law and politics that directly impacts the operations of the
company in the country. It also concludes about the importance of the health and safety for the
employees in an organization. This report also summaries about the distinct legal status of the
business organizations in the country. It also explains how the different sectors of economy
namely the primary, secondary and tertiary.

REFERENCES
Books and Journals
Bridge, S., Murtagh, B. and O'Neill, K., 2020. Understanding the social economy and the third
sector. Bloomsbury Publishing.
Cameron, H., et.al , 2019. Equality Law Obligations in Higher Education: reasonable
adjustments under the Equality Act 2010 in assessment of students with unseen
disabilities. Legal Studies, 39(2), pp.204-229.
Christophers, B., 2022. Rentier capitalism: Who owns the economy, and who pays for it?. Verso
Books.
Davies, P., 2019. Transforming the UK financial accounts: flow of funds.
Grout, C., 2020. Discrimination and the Church of England: To What Extent does the Equality
Act 2010 Adequately Protect Church of England Clergy?. Oxford Journal of Law and
Religion, 9(3), pp.463-507.
Horton, A., 2022. Financialization and non-disposable women: Real estate, debt and labour in
UK care homes. Environment and Planning A: Economy and Space, 54(1), pp.144-159.
Mason, A. and Minerva, F., 2022. Should the Equality Act 2010 Be Extended to Prohibit
Appearance Discrimination?. Political Studies, 70(2), pp.425-442.
Micah, A.E.,et.al , 2018. Donor financing of human resources for health, 1990–2016: an
examination of trends, sources of funds, and recipients. Globalization and health, 14(1),
pp.1-9.
Sweeting, R.C., 2022. UK venture capital funds and the funding of new technology-based
businesses: Process and relationships. In Venture Capital (pp. 315-336). Routledge.