Business Law Report: Business Structures, Funding, and Regulations

This business law report provides an overview of key concepts in business law, including the legal structures of businesses. It examines different types of business organizations such as sole proprietorships, partnerships, and limited companies, detailing their advantages and disadvantages. The report further explores various sources of funding for these business types, including personal capital, contributions from partners, and loans from financial institutions. The conclusion summarizes the importance of business law and highlights the different forms of business and their respective financial strategies. This report is a valuable resource for students studying business law and looking for insights into business structures and funding mechanisms.

BUSINESS
LAW

Table of content
 Introduction
 Different types of business legally formed along with
benefit and drawback
 Managing and funding of the business
 Conclusion
 References

Introduction
Business law is defined as the body of law
that governs the business practices and how a
business has to done.
This involves different types of the rules and
regulation which needs to be followed by the
business in order to manage the working in
effective and efficient manner.

Different types of business organization legally
formed along with advantages and disadvantages
Types of business Advantages Disadvantages
Sole proprietorship- The sole proprietorship is
being defined as the type of business which
involves a single trader who pays the capital
on their own. Here only profit and loss is
being owned by the owner only. In addition to
this all the decision making powers rest in the
hand of the owner is only and not any
involvement of any third person.
The major benefit of sole proprietorship
business is that it is easy to form. The reason
underlying these factors that the person has to
invest their capital and take and run the
business hence it is very easy to form the sole
proprietorship business. In addition to this
another major benefit of the sole
proprietorship business is better full control is
in the hands of the owner only. There is no
interference of any other party of the
business. On the other hand major benefit of
opening a sole proprietorship business is that
the decision making is quick and fast.
In contrast to this the major drawback of
opening a sole proprietorship business is
started this large professional skill and latest
talent (Kahale III, 2018). The reason
underlying this fact is that all the decisions
are being taken by the sole proprietor only
and take do not seek any professional and
expert help. Along with this and other major
drawback of sole proprietorship business is
30 owners has the unlimited liability. The
reason underlying the factor that in case of in
laws for the company it is to be barred by the
sole proprietor only.

CONTINUED
Partnership- partnership is a type of
business entity where in two or more people
come together and bring the capital and
share the profit and loss incurred by the
business. This is a very common type of
business which is being undertaken by
friends and colleagues.
The major benefit of using the partnership
as a business form is that it is very easy to
start. The reason underlying this fact is that
the partners bring in capital it means they
can start the business (Bowie, 2020). In
addition to this another major benefit is that
it liabilities of the partnership firm are also
shared between the partners. Hence there is
not any burden on a single partner and it is
equally distributed among all the partners.
In contrast to this there are also certain
drawbacks of using partnership as the
business entity. The major drawback of
using partnership is that the business has no
independent legal status. The business is
always known with the name of the partners
only and there is not any separate legal
entity. in addition to this another major
drawback of using partnership as with this
mode is that the partners have unlimited
liability. The reason underlying this fact is
that the partners and the form are not
separate entity and because of this the
liabilities of the partners is unlimited.

Managing and funding of the
business
Types of business Sources of funds
Sole proprietorship For the sole proprietor the major source of business is the personal
capital which the owner is bringing within the business.
In addition to this another source is the borrowing from friends and
families.
Partnership For partnership the major source of finance is the capital brought in
by the partners.
Along with this and other source of finance is the borrowing from
the financial institution and banks.
Limited company For a limited company the major source of finance is the issue of
shares (Thompson, 2017).
Moreover in addition to this another major source of finance is the
borrowings from financial institutions and banks.

Conclusion
 In the end the book report summarised factor business law refers to as different laws which guide the
working of the business.
 The current presentation outlined that different forms of business involves sole proprietorship,
partnership and limited company.
 Along with this is was evaluated that different forms of finance involves personal capital, loan from
banks and financial institution and others.

REFERNCES
 Thompson, D.B., 2017. Teaching the business law and ethics of arbitration after
concepcion. Journal of Legal Studies Education, 34(1), pp.63-88.
 Wikrama, I.A., 2017. Developing English Materials for Students of Management
Department: Business Law & Islamic Economic at Sekolah Tinggi Ilmu Ekonomi
Yayasan Pendidikan Ujung Pandang (STIE YPUP) (Doctoral dissertation, Universitas
Islam Negeri Makassar).