UKCBC HND Business Law Report: Legal Structures and Funding Options

This report, prepared for an HND Business Law unit, delves into the application of business law within companies, specifically focusing on legal structures and funding methods. It examines the advantages and disadvantages of different legal structures, including private and public limited companies, as well as the legal frameworks governing them. The report explores various funding methods available to businesses, such as government grants, crowdfunding, investments from investors, and self-organized funding, providing insights into each method's benefits and drawbacks. The content is designed to enhance understanding of how business law affects operational decisions and overall company development, with an emphasis on legal formation and conflict resolution. The report draws from various sources to support its conclusions, emphasizing the importance of legal compliance for business success.

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The repost will also pay focus on the business organization and ho they legally formed along
with proper conflict resolutions. This will help in proper analysis of the business law which
will help the company and country in proper development and performing of task.
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he nest is about the private structure organisation separate legal entity in a public limited
company’s shares are sold to public. Most of the finance for company come from public shares.
When one man band enterprises are excluded (70 per cent of the total population of businesses),
the proportion of the business enterprises using each of the three most popular legal structures
changes considerably. Companies are the most popular legal structure, at 54 per cent of the total,
followed by partnerships at 30 per cent and sole traders make up 16 per cent of the total.
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Advantages and disadvantages of different legal structure
 United Kin is offering different structures for company they
all have their own advantages and disadvantages as well (Albers,
Wohlgezogen and Zajac, 2016). The best approaches if they are
instead to forming is to engage with the company that can assist
them in determine that best for the collaborate goals. By using
any company which which can offer quality advice and
formations , they will be fully prepared to make the proper
decisions. There are two different legal stature which can be
followed by companies.
 Private limited company
 private limited companies are separate legal entity in a public
limited company’s shares are sold to pubic. Most of the finance
for company come from public shares. Minimum 50,000 dollars
share capital are provided to the public ((Bikas, Stavropoulos and
Chryssolouris, 2016

PlC companies are called Publicly trade companies. In a public limited companies also have
their own legal identity. Companies have to attached their in the list of stock exchange. It is
necessary for the companies in United kingdom have to in include public limited word with the
company name. Welsh companies can chose their name with CCC,In the formation of public
Limited company required minimum 2 director and 1 secretory companies. That director can
be anyone. They provide provide different different shares in the market like – ordinary shares ,
preference shares , cumulative preference shears and redeemable.
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 Advantages
 members in the private limited company are well known to each other and this
is advantage for them there all control in the hand of owners capital.
 In the management of affairs and a conduct of business has more greater
flexibility
 statuary meeting is not required after submitting the statuary report
 Disadvantages
 public limited companies have disadvantages in restricts transfer-ability of of
shares by its article
 this companies have limited member and employees they can not be expand
more then 50
 shares can't be Quoted in the stock exchange
here are only two directors in private limited company
one of the best thing about this companies are limited liability because of this member of
company enjoy facilities
It also has advantages of a public company and partnership
after reviving a certificate of incorporated to company they can start their business.
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 Public limited companies
 Public limited companies In a United kingdom are governed by a
companies act 2006. this companies have more capability to rise their fund as
compare to the private companies (Nardi, 2018). They have to listed their
shares on the London stock exchange this can attract a larger amount of the
fund from mutual funds , institutional traders and hedge funds.
 Advantages
 becoming a public corporation is an invite from the partial ownership ,
invitation which can reach 1000's of people which is depending on the brand
size
 personal liberates can be reduced through the public limited company
 In any company attached with public limited company then it can be beneficial
for their brand name. They can increase their value in the market
 huge amount of investment from the public fund.
Disadvantages
share are distributed publicly and shares control the ownership of the company because most of
the shares are distributed publicly
directors have complete control over the direction of the company
increment of legal practices in the public limited companies.
Funding For Business
there are different funding methods for an organization to in vest in their company. By using
this all sorceress companies can invest on their business ((James, 2017). There are 5 methods of
funding.
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 Government grands
 government provide funds to the companies through the government
agencies at least 2 external viewers and research by internally award
committee review each applications. They make short list according to the
ranking. Project are funded by government and application of projects are
informed. They take fund from the government for their business
 Crowdfunding
 there are two types of Crowdfunding reward based and equity based
crowd funding. Just for staring a business for small firms they can pre-sell a
services or products. People buy a share from for in the exchange of money
((Habermas, 2018). They take some profit share of that particular firm
It is beneficial because they do not have to pay that much interest on the fund they are taking.
This is one of the best method and they have to pay very low amount of interest. But it is not
easy to take involvement from this method. They have some rules and regulation in this
method.
. In a reward crowdfunding craters make funding targets. Anyone who is interested in it project
must breach to its amount which is targeted. When they have enough funds for their projects
then craters of project have to fulfill their promises
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 Rise from inverters
 companies can rise their fund through the inverter they have to show their
investment plans to the inverter and if they are interested in the projects then
they can invest in their business. There are many people who are interested to
invest their money on companies. Organization's have to find those inverters .
When year complete then they have to give reward from their profit. This is
one of the common method use by company.
 Self Organized Funding
 In the self organized fund owner of the company invest their own fund in
the business. They do not take fund from others (Nardi, 2018). They invest
brand some investment from their family , fends and people they know.
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 Rise from inverters
 companies can rise their fund through the inverter they have to show their
investment plans to the inverter and if they are interested in the projects then
they can invest in their business. There are many people who are interested to
invest their money on companies. Organization's have to find those inverters .
When year complete then they have to give reward from their profit. This is
one of the common method use by company.
 Self Organized Funding
 In the self organized fund owner of the company invest their own fund in
the business. They do not take fund from others (Nardi, 2018). They invest
brand some investment from their family , fends and people they know.
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CONCLUSION
 On basis of above report it has been concluded that how much business law
can be helpful thing for the organization to be safe and secure. In other words,
the whole study has been defined about the purpose and aim of the research in
order to concluded the business law. Apart from this, it has been concluded
from the research that how sources of law in United state will be more
effective for the company that maintained the systematic results

Apart from this, explanation is a key legislation, regulations and standards that a new business
needs to be aware of. Apart from this this study concluded about the key legislation and
regulations that a new business should need to adopt in performing the new objectives