Business Structure, Finance, HR, Economy, and Sectors Report - UK

This report provides a comprehensive overview of business structures, focusing on the UK market. It begins by outlining the different legal statuses of businesses, including sole proprietorships, partnerships, and limited companies, along with their respective strengths and weaknesses. The report then delves into the financial aspects of starting a business, evaluating the advantages and disadvantages of various funding sources such as personal investment, bank loans, and crowd-sourced funding. Furthermore, it identifies and explains the three key sectors of the UK economy, highlighting their differences and implications for businesses. The report also examines essential HR policies relevant to the modern workplace, emphasizing their importance. Overall, the report offers valuable insights for entrepreneurs looking to understand the fundamental aspects of establishing and managing a business in the UK.

The Structure of Business

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Construct a table show the various legal statuses of business that business will adopt.
Identify strength and weakness of these legal statuses...........................................................3
Considering the business idea, identify and evaluate the strength and weakness of three
sources of finance available to business start-up....................................................................7
Identify the three sectors of the UK economy in which the business can operate. What are
the differences between the three sectors?.............................................................................9
Identify at least two HR policies and comment on their importance to modern workplace 10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business structure is characterized as the lawful construction inside an association
which is analysed in their provided ward. The association structure is viewed as a vital
determinant in which various exercises are executed by them which is useful in the amassing of
capital, executing various commitments of the business and paying the differential measure of
assessments to perform customary working. Prior to deciding to choose the lawful design of the
business the proprietors are needed to choose the objectives and targets of the business and its
construction also (Swandari and Sadikin, 2016). Other than this, there are four kinds of
significant business designs like sole ownership, organisation, LLP and LLC. The current report
is a collection of different ideas identified with business structure and acquiring openings inside
the business. The report is set up with regards to a business visionary who is as of late willing to
begin their endeavour inside the UK which is of a retail association named Trouva and to get
capability in a choice they are attempting to get information in regards to differential
construction had so they can start their endeavour. This will give information in regard of
legitimate constructions so qualities and shortcomings can likewise be analysed alongside such
HR approaches.
MAIN BODY
Construct a table show the various legal statuses of business that business will adopt. Identify
strength and weakness of these legal statuses
The legitimate construction of an organisation is reliant upon alternate perspectives, for
example, the size of the business and expense suggestions also. Based on business structure, the
assessment computation is performed by the association. Then again, assuming some
association is having the rationale of serving the general public; goals are set for starting a
social endeavour so by and large business advancement can be seen. With the assistance of the
accompanying table legitimate design of organisation s can be distinguished so this could be
simpler for any dare to embrace the most appropriate construction. Other than this qualities and
shortcomings of every framework is additionally listed with the goal that choice in regards to
adherence can be taken.

Legal statuses forms About statuses Strength Weakness
Sole proprietorship The word sole is
characterized as
single which implies
these are the
organisation s that are
possessed and
overseen by a solitary
individual. The idea
of a sole ownership is
years old and utilized
in an extremely
crucial way. Sole
owners are related
with dealing with a
private company and
exceptionally
restricted activities as
they have a solitary a
solitary individual to
deal with every one
of the functions
(Kasahun, 2020).
This kind of business
structure is adaptable
and practical in nature
so the majority of the
business person
receives this in their
underlying days to
stay away from
At the point when
business is organized
under sole ownership
then this may lead
something very
similar to cover
different qualities, for
example, they have
the opportunity to
work inside the
business and have
their own standards of
capacities and taking
different choices. On
the other once in a
year charges are
needed to pay out of
benefits. Other than
this, it is not difficult
to set up sole
ownership as
authorizing and
government working
is not difficult to cling
to. This sole
ownership is perhaps
the most
straightforward type
of business as there
are no complexities
This construction is
having different
detriments also, for
example, they don't
have multi-
dimensional
wellsprings of money
as their solitary
wellspring of money
is the functioning
capital of the
association. In
addition, the
accessibility of
money inside the
business is
additionally restricted
because of lesser
useful regions.
Likewise, these sorts
of organisation s are
having a
predetermined
number of assets
because of which the
interaction of
dynamics gets more
enthusiastically.

intricacies. Other than
this ownership is
ineffective at some
level because of a
negligible number of
activities and yet, this
could be fruitful as
individuals are
utilizing this to
pursue their fantasies.
that are associated
with the setting up of
business. The
majority of the new
businesses are
utilizing this
construction as these
endeavours don't have
a lot of room to enlist
workers.
The partnership Association business
is characterized as
when at least two
individuals mutually
hold responsibility for
business as far as
capital, assets,
benefits, misfortunes
and numerous
different imperatives.
The organisation is
related to
accomplices and
accomplices are of
different sorts like
dynamic accomplices
and dozing
accomplices.
Dynamic accomplice
takes an entire
interest in dynamic
The significant
strength of an
organisation as a
business structure is
that community-
oriented endeavours
in dynamic can be
seen because of
which intricacies can
stay away from
(Hodge and Greve,
2017). At the point
when more than one
individual is included
inside the business
then new and
inventive thoughts
can be arisen and may
lead the business to
contact higher
development
On the opposite when
more than one
individual is related
with dynamic then
this may prompt
creating clashes. Then
again liabilities can
secretive conversation
into creating conflict.

and generally
speaking working of
the business though
resting accomplices
are not effectively
enlisted inside the
working of the
business.
openings which is a
plan to bring in cash
out of it.
Limited liability
company or
partnership
The government
permits an extra type
of business which is
named as LLC and
LLP. Under this
liabilities of
individuals or
accomplices are
restricted to the sum
which is chosen
during the foundation
of the deed and
adventure. Other than
this measure of the
venture is
additionally restricted
to some pre-chosen
proportion and after
each point in time
deeds can be restored
as per the need of the
business.
This design is being
able to raise capital
however this is
having restricted
responsibility too.
Then again, this
design gives
separated possession
to the administration
and related gatherings
with no impedance.
The significant
shortcoming of this
kind of business
structure is that these
are composite in
nature and inflexible
sooner or later of
capacities. Other than
this, the interaction of
dynamics under these
endeavours is
protracted and
unpredictable too
(Bainbridge and
Henderson, 2016).
Finally, the colossal
measure of duties is
needed to be paid by
these organisation s
as these hold a
different element of
lawfulness.

Considering the business idea, identify and evaluate the strength and weakness of three sources
of finance available to business start-up
There are different modes and sources of financing available to every business to fulfil
their fund requirements, below given are some of them generally used by different business
organisation s:
Personal investment: In this form of investment, own fund of owner is invested in the
business in the form of cash or collateral (Cen and Doukas, 2017). These kinds of investments
are sign of long-term commitments which helps owner to gain the edge within business. This
comes with both advantages of ownership and risk of losing the money and the same is
elaborated below:
Advantages Disadvantages
Own fund of the owner is used in this type of
financing therefore there are not many
complexities within business. One key
benefit is that no interest costs are seen
relating to such funds and moreover there is
no pressure of payment as there is no defined
payment schedule for such type of financing.
This is considered as fast mode of financing.
Since own funds are invested by owner of
business in this mode of financing, the major
investment may mean that the owner must
invest and risk all his savings, which may lead
him losing all his savings. Therefore, it might
get difficult for owner to mitigate personal
risk.
Funds from investors and bank: This are often referred as venture funds and the banks
and wealthy persons have sufficient funds invest or finance the businesses to meet their
financial requirements and to achieve long-term support. This is one of the most systematic
modes of financing in which investors with well-defined knowledge evaluate various
businesses and investment opportunities and fulfil the overall financial needs and requirements.
New business establishments can initiate their business operations with this source, and they
gain the expertise and required competencies to continue their business operations. It also
assists the new establishments in grabbing all the expansion and growing opportunities. The
businesses have chance to prove themselves to the investors and gaining such acceptance from
them such that they can make decision whether to invest in the business. They share and present

their prospects and plans to expand and grow their business activities in a manner that they can
achieve the desired business goals (Kaur and Kaushik, 2016). Besides this, Bank loans are one
the famous and conventional mode of financing used by every business. In comparison with
other sources, bank loans are easier to reach and discuss with banks for gaining higher business
succession opportunities. Interest is the key factor which is important in deciding to which loan
offer should be gone with since ultimately it is the liability of business to pay the bank principal
amount of loan received and interest charged on same within scheduled time frame to avoid any
form of financial penalties.
Advantages Disadvantages
Investment from financial investors and loan
from banks are the most traditional mode of
financing. Under this, venture gets the
sufficient finance to fulfil their finance
requirements in the most possible effective
and systematic manner.
The process of getting funds from this mode is
a time taking and long process which might
often take more time than what was being
expected. It is tough to convince the financiers
as it includes evaluating and analysing the
financial statements and certain times the
application can even be rejected.
Crowd-sourced funding: This is one of the trending and growing mode of financing in which
large number of small investors gather and invest money in the shares of company as per their
capabilities. Since small contributions are taken from all the investors and as the number of
investors is high it would lead to higher investment opportunities. This is based on different
ideas provided to the investors through different sources like their annual reports to investors
and this would raise the inclination for investors. Influencing the investor is key term that is
used here which would be key motivator for the investors to invest and consider the business to
be reliable.
Advantage Disadvantages
It is the quick way of financing as there are
number of investors who will contribute their
own funds which would be accumulated to
form a large sum of money (Matthew, 2016).
The motive of most of the investors under this
mode is to gain the large amount of profits in
the short term but at initial stage this is not
feasible. Since this method is for start-ups

This is good option for start-ups to attract the
public in large and quick access over funds.
there is always a probability of high loss and
risk.
Identify the three sectors of the UK economy in which the business can operate. What are the
differences between the three sectors?
Generally, there are 3 different sectors exist in UK which can be used by the start-ups
in-order to initiate the business activities the same are elaborated below:
Primary sector: This sector is the key for every business to operate as this will help
business to get all the required raw materials to the newly established business for their support.
This sector includes very small population residing in UK so that only a small population is
covered by them. This type of businesses is operating in different and multiple shifts and
advancement in technology is within the operation and this is the major feature of business for
which it is known. They are meant and responsible to serve small ratio of population of country
as well as GDP. This is also known by term extraction sector as it recycles and works on
renewable energy which acts as mode of employment for number of people (Vereijssen and et.
al., 2017). It has also been noticed that there is decline in growth of this sector since there has
been a major reduction in resources. Therefore, this sector could be beneficial for the Trouva to
acquire and gather improvements in the operations and gaining adequate market prominence.
Secondary sector: Under this form of business sector finished goods are distributed and
sold to the consumers related to various utilities such as construction, building, goods etc. This
is key sector in overall supply chain for the country and GDP as it would render high value to
consumers by supplying them finished goods (LAZĂR, 2019). There are several technologies
trending like spinning machines and which can cater the business to add large number of
consumers in very minimal time. This is an important player in growth of the country as it will
help in elimination of production cost and parallelly productivity of labour can be enhanced.
Tertiary sector: This sector is the most flexible with respect to Trouva as this sector is
dedicated towards offering the services and products to the consumer as well as business to
fulfil their requirements (Salmi, 2017). The other part of this sector is retail selling of the
manufactured goods and services to the end user consumers. The major examples of this sector
are Insurance, Banking, and many other tertiary service providers. The expenditure by

individual gets increased in direction of their income and as result of which overall economy
can be increased.
The changes in the importance of different sectors
The economy of the country is majorly dependent upon contribution from Primary
sector players as it overall based on people and workforce employed. It can include agriculture
and food industry. This industry should focus and use the most advanced and trending
technologies so that the resources and workforce can be utilized in most effective and efficient
manner and the similar effect can be seen on economy development. It helps the labours to
grow and enhance their living and working standard and fulfil needs of their family. It is the
sector where top level decisions are taken and plays as major part of economy (Prokopenko and
et. al., 2019). It is also linked and associated with several government legislations which are
made with view of developing the country and provide people with required products and
services.
Identify at least two HR policies and comment on their importance to modern workplace
There are number of important policies which are implemented in organisation to maintain and
regularize the modern workplace. Below given are few importance policies out of all those:
Equality and diversity policy: This is important to maintain an environment of equality
and diversity in any organisation to make sure employees feel comfortable and suitable
opportunities are provided. It would make employee feel valuable and worthy in the
organisational structure and will work with more ownership as compared to what he would do
generally. This is more with regards to safeguarding female employees and employees suffering
with any form of disability. This policy stress upon providing equitable opportunities to
everyone irrespective of any form of biasness (Sharma, 2016). This policy is important because
it would help the organisation in boosting the confidence and motivation level of the employees
which would ultimately result in enhancing their performances and output towards the
organisation goal. The trust among the organisation and among employees between each other
too will increase and which will result in effective coordination, communication and team work
as well as mutual respect. With the use of this key HR policy relating to maintenance of suitable
work environment, Trouva will be able to meet the satisfaction needs of their employees and

provide them with improved job security which would help them in performing with higher
efficiency that would result in smooth achievement of overall business objectives.
Safety and health policy: Health is important for every person around the world. As we
have seen in the recent time a pandemic has caused a whole lot of trouble to everyone in the
chain of operations around globe. It has shifted organisation s in thinking mode to come out
with a policy which would help employees feel safe and assist them in case of any form of
medical emergency. The organisation s even conduct various type of drills for fire, flood,
earthquake etc. which would be helpful for employees to be aware of what to do in case they
face any such disaster or health hazard (Jilcha and Kitaw, 2017). They are properly thought as
per this policy what are the actions, they should take in case they come across any such health
or safety hazard. Moreover, they are also being provided with various kind of health financial
assistance for them as well as their families. It would provide them with a lot of safety around
work environment as otherwise it is difficult for any employee to carry on his responsibilities as
a place where he doesn’t feel safe, and it would be difficult for everyone to have a large amount
of financial assistance to overcome the problems they and their family might be facing. Below
mentioned are some of the key aspects relating to successful health and safety measures and the
same are explained as under.
 Organizing several work programs by manager
 To make sure all the Employees are required and covered in those programs
 Such systems are required to be included which are helpful in defining such controlling
measures for hazards.
 Adequate Trainings to employees to be given related to ensuring adequate safety
measures.
 The mutual respect is required to be maintained so that communication gap can be
bridged.
 The policy should be made in relation to gaining importance related to workplace safety
and health policy.
 This could be helpful in providing health and safety participation to employee.
 Practicing use of such policies is required to be adhered with laws in order to mitigate
such aspects of mismanagement.

CONCLUSION
From all the above detailed points and study, it can be summarised that various structure
and formation of business can be evaluated and selected by Trouva in-order to execute and
initiate their business operations according to business need and market demand. Organisational
structure is providing important advantages to the business to grow and sustain in the market
and sustain with existing competencies. Besides these financial resources and HR policies can
be used by business to attain the maximum productivity for employees and overall for the
organisation as well.

REFERENCES
Books and journals
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review. Public Works Management & Policy, 22(1), pp.55-78.
Jilcha, K. and Kitaw, D., 2017. Industrial occupational safety and health innovation for
sustainable development. Engineering science and technology, an international
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Kasahun, A.K., 2020. The Impact of Working Capital Management on Firms’ Profitability-
Case of Selected Sole Proprietorship Manufacturing Firms in Adama City. IOSR
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mutual funds. Journal of Indian Business Research.
LAZĂR, C.M., 2019. Food Industry-Economic Categories and Processes Specific to the
Secondary Sector. The USV Annals of Economics and Public Administration, 18(2
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Matthew, A., 2016, April. Crowd-sourced funding-an innovative funding model for innovative
business. In The QUT Intellectual Property and Innovation Law, 3D Printing
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Prokopenko and et. al., 2019, October. Multiplicative Dynamic Model of Technological
Progress Factor Impact on Economy Sectors Innovation Development. In 2019 7th
International Conference on Modeling, Development and Strategic Management of
Economic System (MDSMES 2019) (pp. 68-72). Atlantis Press.
Salmi, J., 2017. The tertiary education imperative: Knowledge, skills and values for
development. Springer.
Sharma, A., 2016. Managing diversity and equality in the workplace. Cogent Business &
Management, 3(1), p.1212682.
Swandari, F. and Sadikin, A., 2016. The effect of ownership structure, profitability, leverage,
and firm size on corporate social responsibility (CSR). Binus Business Review, 7(3),
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Vereijssen and et. al., 2017. Addressing complex challenges using a co-innovation approach:
Lessons from five case studies in the New Zealand primary sector. Outlook on
AGRICULTURE, 46(2), pp.108-116