BMP4002 Business Law: Report on the Legal Context for UK Businesses

This report provides an overview of the legal context for business organizations in the UK, focusing on key sources of law and legal structures. It covers various aspects of business law, including company law, contract law, and tort law, and discusses different types of business organizations such as sole proprietorships, general partnerships, and limited liability partnerships. The report also offers recommendations for IOM Solutions regarding business expansion and concludes with a summary of the main points discussed. Desklib offers more resources like this, including past papers and solved assignments.

Business Management
BMP4002 Business Law
Assessment 2
Report describing the key sources of
laws as the legal context for business
organisations in the UK
Contents
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Table of Contents
Introduction ...............................................................................................................................3
MAIN BODY ................................................................................................................................3
Businesses & Organizations in the UK...................................................................................3
The legal business structure of UK companies..........................................................................4
Sole Trader.............................................................................................................................6
Partnership............................................................................................................................6
General Partnership...............................................................................................................7
Limited Liability......................................................................................................................7
Recommendations for IOM Solutions...................................................................................7
Conclusion..................................................................................................................................7
REFERENCES...............................................................................................................................9
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Introduction
Business law means those legislation that has been used in order to establish
business organization as per legal standards present within country. These laws
helps in developing proper structure in order to conduct business in more effective
manner. These laws are also used to make business organization achieve goals and
objectives as per legal framework prescribed for it. Also these laws are wider since
they impacts business functions and its various process. The law has formed various
legislation which is used in order to create legality while conducting business.
Business law has lead upon formation of legislation used in making business
organization function properly. In this report concept in relation over business
organizations has been covered. Also legal structure of business organization in
United Kingdom are explained with various kinds of business organization like sole
trade and partnership. In the end solution is provided over IOM solutions.
MAIN BODY
Businesses & Organizations in the UK
Business organizations means those organization that deals with various
kinds of commercial and corporate activities that helps in conducted business
functions more effectively. These organizations develops capability within business
organizations that helps in conducting business activities and functions with more
effectiveness. Also business organization within United Kingdom has various
perspectives to be covered which make goals and objectives achieved as per legal
standards formed by business organization. Further, these organizations covers
trade and money related activities by following different laws with legislation making
effectiveness created in business functions(Dickinson, 2017). These organizations
uses mainly three types of laws which are contract, company, employment and tort
law. They help in conducting business operations with proper guidelines and
regulations formed through polices of an organization. In company law various
aspects related over business activities are covered which makes aspects related
over business covered more effectively. In order to conduct business Companies Act
2006 has been formed as permanent legislation. Under the act guidelines and rules
which helps business organization to work as per legal standards of United Kingdom
has been covered. In this act memorandum of association and article of association
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made compulsory to be formed by an organization for establishing business
organization. The act made appointment of director done and responsibility related to
an business organization has been covered with this duties and rights of directors
has been explained within act. The act has made various complex process reduced
which were required for formation of business organization. Another law used by
business organizations is contract law which relates over agreement formation taking
place between two or more then two organizations. As per these laws business
organization form contract in written and unwritten manner that make expressed or
implied contract valid in nature. These law allow agreements to become valid
contract through making legality achieved within the eyes of law. There are certain
elements which is used used for contact formation and they are offer, acceptance,
obligation, legality and validity. If an element is absent then contract cannot be
formed or attain valid legal status. An offer is based over idea that has been
presented by one party to another in order to initiate idea. Then comes second
contract that is acceptance which is based upon ideologies presented by one party to
another. In this ideology behind contact has been shared. Third element is obligation
based over rules and regulations formed after having discussion over the contract.
Under it both parties comes over common point of agreements which becomes
obligation within contract. Fourth element is legality based over laws applied within
contract used for making it legal in nature(Fairchild, and et. al., 2018). The last
element is validity makes validity over contract to be proved since an contract cannot
be based over illegal activities of any kind. Then law of torts which is an civil law and
is used for handling general legal problems faced by an business organization based
over nuisance, negligence, tress pass and helps in making identification done over
vicarious liability. These are those liability which is based upon principle that “master
is held liable for act committed by its servant”. According to this principle an act of
illegality committed by an employee makes employer liable as employee works on
the guidance of employee. These law makes business organization of UK function in
more effective manner making business organization perform business as per legal
standards set by government which makes organizations policies formed effectively.
The legal business structure of UK companies
According to legal structure of business organization different kind of
perspectives has been covered within it which makes business conduct legal
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activities more effectively. Under legal business structure of UK there are two main
types of business organizations which are incorporated and unincorporated
organization. Under unincorporated business organization less complex process is
included which makes business conducted without any problem. In these
organizations since there is less involvement of government making business
conducted more effectively without any problem within its process. Such organization
help in providing stability to the business willing to operate in United Kingdom. The
organization that has been covered under unincorporated business which are sole
proprietor and partnership. These organizations are important for making business
development done as per the nature of business. The organization helps in starting
business and make its expansion done with low budget. The organization are formed
as per nature of business. These organizations makes start up formed effectively. In
incorporate business organization complex process is involved for its formation
which makes business performed at local level. There are two min kinds of
organization covered which are private and public organization. Private
organization: These are those organizations that uses Private Ltd in end of its name
and share are not sold in public. In order to form these organizations all documents
are collected and then submitted to Companies House which makes registration
done more effectively. The organizations managed by directors as they are
appointed for conducting business activities. Funds are arranged in the form of loans
and debentures(Kubacki, Szablewska and Kennedy, 2019). Public organization:
These are those organizations that contains Public Limited within end of its name
and shares are sold in public. The organizations have various owners and all
aspects related to it are handled in more effective manner. The organization has
multi ownership which makes all management done by them. In this documents like
digital structure of owner, memorandum of association and important document
required to be collected and submitted to Companies House for further registration.
In public limited organizations tow or more then two directors are present with two
company secretariat. The organizations majorly work for welfare of society which
makes social issue solved effectively. Managing of funds are sine by owners and
stakeholders related to business. Funds are arranged through government
institution, health programs, community services, restoration programs, public
service programs, and even environmental programs. These are the organizations
which are included within legal business structure of United Kingdom. Further,
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discussion is done over business organizations covered within unincorporated
business organizations and are related to legal business organization of United
Kingdom.
Sole Trader
These organization are based over making business conducted more
effectively. In this organization all work is done by single owner and has all
responsibility in relation over business activities. The owners of these organizations
are termed as sole proprietor and handle all activities by themselves in relation to
business. The process of registration is done by using INHRC number and name has
been provided only by making business identification possible. Since management of
these organization has been done through person owning business. Funds are
arranged with personal sources like family members and friends or any other
personal relation(Phillips and Moutinho, 2018). The organizations has advantages
like profit earned has been kept by owner themselves which makes profit stored
effectively for various purpose of business. Another advantage hold by sole
proprietor is that its formation process is easy which makes establishment of such
organizations done within no time. These organizations are free from tax liability and
only personal tax is to be given to owner. Disadvantage of organization are funds are
not arranged on time which makes working of organization collapse at time. Also
organization face heavy loss which at time leads over business to close. Another
disadvantage is unlimited liability this is one of the most disturbing aspects of a sole
proprietorship firm. On the occurrence of a loss, the proprietor must meet the
liabilities at any cost, which implies that if the need occurs, his/her personal assets
may have to be used for discharging the liabilities.
Partnership
These are those kinds of business organization that has been formed with the
help of tow or more then two persons. As per this organization both persons come
together to form business organization like partnership with common motive to earn
profit which makes various objective to be full filled(Shanahan and Hopkins, 2019).
The organization has effectiveness making business organization expand
themselves in more effective manner. These organizations arr of two types which
has been discussed as follow:
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General Partnership
These organizations has been formed with the help of two persons with an
motive to perform business and earned profit through it. This type of partnership
makes business covered various perspective like risks, costs, benefits and
responsibility upon running of business organization. This organization are handled
by partners themselves. The process of its formation is simple which includes
generating of INHRC number and agreement is only formed when license has been
included within business organization operating effectively. The organization are
managed by partners themselves which makes work done with effectiveness. Funds
are collected through partners. Its advantages are less formal obligation is there and
all burden is shared by partners themselves. Disadvantage of the organization is
based over legal status making business organization face legal issues within
future. Then comes another disadvantage which is based over dissolving of
partnership takes place when an person is dead.
Limited Liability
These form of partnership firm makes partners come together according to
interest of business. As per this kind of partnership partners handled work according
to investment done by partners themselves(Surdam, 2020). Advantage of these
organization is that profit generated is shared by partners as per investment. There
are various advantages which is done over generating profit. Disadvantage of such
partnership is that investing within an organization is not sufficient for functioning
since capital investment is less.
Recommendations for IOM Solutions
In relation over case scenario it can be observed that IOM solutions has
willingness over making expansion done it is required to adopt partnership which
helps in making business expanded in more effective manner. This make business
operations conducted more effectively through investment and is cost efficient in
nature.
Conclusion
From the above discussion it can be concluded that business laws are laws
that has been used in order to perform various functions which makes business
established effectively. Through these laws legislation and act has been created for
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making business conducted more effectively. Then the report explained about
various kinds of business organization and provide overview about legal structure of
business organization. In the end for doing expansion business type has been
selected.
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REFERENCES
Books and Journals
Buchheit, L.C., 2019. Ethical considerations in the representation of sovereign
clients. In Research Handbook on Law and Ethics in Banking and Finance.
Edward Elgar Publishing.
Burri, T., 2021. The New Regulation of the European Union on Artificial Intelligence:
Fuzzy Ethics Diffuse into Domestic Law and Sideline International Law.
Available at SSRN 3865149.
Conrad, C.A., 2018. Ethics in Business Education. In Business Ethics-A
Philosophical and Behavioral Approach (pp. 327-337). Springer, Cham.
Courcelles, D., 2019. The Ethics of the Merchant in the Islamic Faith: From Ibn
Khaldoun to Islamic Finance.
Dickinson, A.L., 2017. Recent Ethics Opinions of Significance. J. Legal Prof., 42,
p.291.
Fairchild, and et. al., 2018. 14. Health Justice. In Public Health Law and Ethics (pp.
587-612). University of California Press.
Kubacki, K., Szablewska, N. and Kennedy, A.M., 2019. Guest editorial: Social good
and ethics in social marketing for wicked problems. Journal of Social
Marketing, 9(4), pp.485-489.
Phillips, P. and Moutinho, L., 2018. Business ethics. In Contemporary Issues in
Strategic Management (pp. 178-194). Routledge
Shanahan, K.J. and Hopkins, C.D., 2019. Level of agreement between sales
managers and salespeople on the need for internal virtue ethics and a direct
path from satisfaction with manager to turnover intent. Journal of Business
Ethics, 159(3), pp.837-848.
Surdam, D.G., 2020. Examples of Mid-Nineteenth-Century Business Ethics in
America. In Business Ethics from the 19th Century to Today (pp. 71-99).
Palgrave Macmillan, Cham
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