Business Law: Comparative Analysis of Business Organizations Types

This report provides a comprehensive analysis of business law, focusing on the nature, formation, and management of various business organizations. It explores different types of business structures, including sole proprietorships, partnerships, limited liability partnerships (LLP), and limited liability companies (LLC), detailing their legal implications, taxation, and liabilities. The report also discusses the concept of business liability in negligence and vicarious liability, along with employment rights and relevant acts such as the National Minimum Wages Act and the Equality Act 2010. Furthermore, it recommends the adoption of an LLC structure for IOM solutions to facilitate expansion, attract investors, and provide personal liability protection. The report emphasizes the importance of understanding business law for regulatory compliance and organizational success.

Business Law

Table of Contents
INTRODUCTION ..........................................................................................................................................3
The nature, formation and the management of business organization. .................................................3
The explication of the variety of business organizations that are available in the marketplace..............5
Recommendation to IOM solutions for the suitable adoption of a business organization......................8
CONCLUSION ..............................................................................................................................................8
REFERENCES................................................................................................................................................9

INTRODUCTION
The efficacy of an organization depends upon varied factors that helps in the nourishment
of the management in an appropriate manner. The decision making power, financial and physical
position of the company in the market place and the achievement of the goals, determined by an
organization, is reflected through the tactful structure and the composition of a business
organization (Barton and et. al., 2022). The liabilities and the sense of responsibility along with
the explication of the he employer's right will explained in this scrutiny. This study will highlight
the legal structure of IOM solution, in regards to the choice of business composition, the
company should adopt, for the successful expansion of the organization in varied regions of the
global market.
MAIN BODY
The nature, formation and the management of business organization.
The organizational structure of the management helps in the understanding of the
corporal mechanism of the administration. The quality of a business organization is concerned
with an optimum attainment of the goals, through the deliberate considerations made upon the
essential plan of actions that are carried in regards to the functions performed in an organization.
It is imperative to understand prospects related to the formation of a company, in order to
comprehend towards the mandatory processes that are required for the impelling functioning of a
company The IOM solutions must be considerate about certain aspects, for the effective planning
of the expansionary policies of the company.
The sources of law – This is referred to as the preliminary source point of the basic rules and
regulations that abides the human conduct in varied manners. The business law can be
considered as the treaty that guides and governs the regulatory transactions occur during the
trade in regards to the industrial and commercial areas (Deb, 2022). Any kind of ignorance in
this respect is not acceptable and penalties can be imposed upon the trading associations. IOM
solutions should be considerate and follow the prescribed guidelines while performing the
functional operations of the business.

The business transaction – An economic event that takes place during a trade with third party
can be considered as a business transaction. These transactions are measurable and is duly
recorded in the accounting system of an organization. These transactions can be of three types:
 Cash transactions
 Non-Cash Transactions
 Credit Transactions
The most common types amongst the three is the cash transaction. Most of the trading
associations prefer to opt for this particular form of transaction with an involvement of cash or
cash equivalents as a medium of exchange. The engagement of cheques and other debit
transactions will also be considered as cash transaction (Hirvonen-Ere, 2022). IOM solutions
should ascertained the acceptable mediums for the smooth functioning of the transactions in the
business.
The nature and the management of an organization – The effective and impinging engagement
of the personnel in a company must be the primary focus of an organisation. The appropriate
regularisation of the systems and the structure of the businesses should be in accordance to the
purpose, mission and the vision of the company. The economical, technological and the
demographical aspects must be covered in an expeditious manner while formulating a functional
strategy of the business. The significant conceptions to be taken into account by IOM solutions
are:
 The organisational structure of the company.
 The multicultural existence in an organization.
 The advancements in the modern facets. The legal formation of the business structure adopted by the company.
The conception of business liability in negligence – The idea of negligence in the business law,
can be considered as the failure, which happened due to the unaccomplished nature of the
standardised norms or the behaviour by the representatives of the firm. This can result in the
formation of a divergence in the path of attainment of the goals. This particular form of liability

can deteriorate the growth rate of the firm (Lawrence, 2022). The breach of the duties that are
assigned to the workforce can result in a negative impact which can influence the performing
standards of the enterprise. IOM solutions should be persistent in the authorization of this form
of liability for the elimination of these forms of deformities in the management.
The vicarious liability of a company – This form of liability occurs, when a person is reasoned
to be liable for the actions of others. The acts of the directors can influence the management of
the company and would eventually result in the rise of vicarious liability. The relative
responsibility of the faulty decisions of the higher authorise can create malformations and
commotion in the management and the guilt is effectually transferred to he heads of the
subordinates. IOM solutions must be thoughtful in regards to this conception and should void
such transfers. This could hamper the positing of the personnel working in the venture.
The employment rights – The protection and the safeguarding of the employees rights, comes
under the head of the employment rights. The government of the UK set certain measures to
secure the morale and comprehensive rights of the personnel of an organization. The
remuneration aspect, working conditions and the maintenance of the equality in the management
is the moral responsibilities of the laws specifically designed for the employees. The acts are:
 National Minimum Wages Act
 Equality Act 2010
 Health and Safety at Work Act 1974
IOM solutions should abide by such imperative acts of the government for the assurance of the
health, well-being and the morale of the employees. This would furthermore help in retaining the
workforce for a significant period of time and also to maintain the market positioning (Meggitt,
2022).
The explication of the variety of business organizations that are available in the marketplace.
The determinative objective of the IOM solutions is to expand in the global market. For
this particular purpose, the enumeration of the prevalent forms of business structures in the
market is critical. The adoption of the most suitable form of structure by the company is
significant for the implementation of a successful management in the international market. The

decision in this regards must consider the legal aspects related to the incorporation of the varied
structures present in the business environment. The aspects related to the taxation, formation and
the liability each of the composition must be explicated in a significant manner. The numeration
of varied forms of business structure prevalent in the UK can thereby be elucidated in this
section of the study.
The sole proprietorship – This is the most simple and prevalent form of legal structure in the
marketplace. There exists no legal distinctions between the business and the owner. The
responsibilities and the liabilities of the owner is self depended and the risks and the profits are
under the control of the owner itself (Meyer and et. al., 2022).
Legal implication: The filing of the taxation is not done by the proprietor itself but it is reported
through the tax returns according to the Schedule C Form. The liability is unlimited in this
structure and the mitigation of the risks can only place with the help of insurances and other
sound contracts of the business ventures. The formulation of sole proprietary is simple and the
costs incurred in the registration criteria is also very low as compared to other form of business
structures.
Partnership – The engagement of more than one individual can upshot the building of a
partnership firm. The profits, risks , benefits and the costs are divided among the partners of the
undertaking. Each partner is also accountable or liable for other partner’s carelessness or
misconduct in relation to the operations of the business (Staffler, 2022).
Legal implication: This particular adoption is considered to be a tax reporting entity rather than
the tax paying entity. The mandatory filing of the annual information return, Form 1065. with an
inclusion of an IRS is critical. This is done to report the level of income and the losses from the
operating activities of the business corporations. Each of the partner present in the contractual
partnership agreement is liable to pay the share of taxes on their respective profit or loss. The
formation of the company in this structure requires a creation of attorney in the form of an
agreement that includes;
 The distribution of the share of profit/loss.
 The financial contributions of each of the partner.
 The enumeration of the signified responsibilities.

 Bookkeeping of the company.
Limited Liability Partnership (LLP) – This is an alternative form of legal business composition
that helps in the provision of flexibility and negotiable and prevent the partners from the
exposure of unlimited scope of liability in the businesses (van der Sloot and Graef, 2022). Each
member of the structure is responsible to react according to the respective share they hold in the
organisation.
Legal implication: The filing of LLP agreement is essential and mandatory to register within the
time period of 30 days. In the lack of the agreement, all the rights and possessions provided in
Schedule I of the act will employ over the partners and the company. It is considered as a
separate entity and the requirements of the accounting and the relative filings is same as those of
a company. The compliances acquirements are thereby simpler that the complex submissions of
the LLC.
Limited Liability Company (LLC) – This form of structure can be refereed to as a hybrid form
which encompasses the taxation modelling of the partnerships and the sole proprietorship. The
owners of the structure are known as the members of the firm. It is not considered as a separate
entity. It is known as a Private Limited Company (PLC) in certain countries.
Legal implication: The report of the respective share of profit or the losses is done by the
individual representative of the LLC on their income tax return filings. The LLC entity only
obligatory to file an informational tax return, analogous in character to the general partnership.
Individual members of the LLCs are permitted to report business expenses on Form 1040
Schedule C, E, or F (Yordy, 2022). The members of this structure are secured from the personal
liability. The owners of the LLC are not allowed to use the financial accounting for their
personal motive. Th formation of the company requires the inclusion of operating agreements
and they signifies the;
 The allocation of the profit and loss share.
 The provision of the Buy-Sell alignment.
 The power of voting amongst the members of LLC.
 The ascertained responsibilities and the rights of the members.
 The structure of the management.

Recommendation to IOM solutions for the suitable adoption of a business organization.
The most suitable choice for the expansionary purposes of IOM solutions can be in
regards to the adoption of LLC, as a conceptualization has been made that the incorporation of
LLC can prove to be an aid in respect of raising significant funds for the company and also to
attract influential suppliers and customers towards imparting in the company (Zulfikri and
Zulkarnaini, 2022). The cost effective taxation planning can provide ample of opportunities to
IOM solutions. The perks in regards to running a LLC can be the acquirement of protection
towards the aspect of personal liability which will help the company to take multiple risks for the
expansionary deals in the coming future.
CONCLUSION
An inference can thus be made that it is important to ascertain the significant and crucial
dimensions of the business law for the maintenance of the regulatory optimisations in an
organisation. The considerations in regards to the varied aspects such as the sources,
transactional approaches, liabilities and the enumeration of the varied business structure, has
proven to be an aid for the accurate identification of the certified elements abjuratory for the
determination of the peremptory facets in the plan of action by the company. This report thus
has helped in the explication of the most suitable form of structure that must be adopted by the
company, considering its comparative legal implications which must be abide by the institution
in a deliberative manner.

REFERENCES
Books and Journals
Barton, T.D., and et. al., 2022. Reframing contract design: integrating business, legal, design,
and technology perspectives. In Research Handbook on Contract Design (pp. 33-54).
Edward Elgar Publishing.
Deb, E., 2022. International Business Law-Critical Review on Corporate Governance in UK.
Available at SSRN 4074105.
Hirvonen-Ere, S., 2022. Business contract design via Contract Management operationalized
methodology. In Research Handbook on Contract Design (pp. 294-313). Edward Elgar
Publishing.
Lawrence, G.M., 2022. Due Diligence in Business Transactions. Law Journal Press.
Meggitt, G., 2022. Business not as Usual—The Financial Conduct Authority v Arch Insurance
(UK) Ltd.
Meyer, R.E., and et. al., 2022. The Corporation: Rethinking the Iconic Form of Business
Organization. Emerald Group Publishing.
Staffler, L., 2022. Basic Knowledge on (Business) Criminal Law & Procedure. In Business
Criminal Law (pp. 93-162). Springer Gabler, Wiesbaden.
van der Sloot, B. and Graef, I., 2022. Collective Data Harms at the Crossroads of Data Protection
and Competition Law: Moving Beyond Individual Empowerment. European Business
Law Review, 33(4).
Yordy, E.D., 2022. Managing Change Ethically: Incorporating Change Management and Project
Management into the Business Ethics Discussion. JL Bus. & Ethics, 28, p.43.
Zulfikri, Z. and Zulkarnaini, Z., 2022. Legal Protection of Intellectual Property Rights: What is
Urgency for The Business World?. Jurnal IUS Kajian Hukum dan Keadilan, 10(1).