BMP4002 Business Law: Key Legal Sources & UK Business Organizations

This report provides an overview of the legal landscape for business organizations in the UK, focusing on key sources of law and their impact. It examines various business structures, including sole proprietorships and partnerships (general and limited liability), highlighting their advantages and disadvantages. The report also offers recommendations for IOM Solutions, suggesting a partnership model for expansion. The analysis emphasizes the importance of adhering to legal and ethical standards for sustainable business operations in the UK. Desklib offers a wealth of similar solved assignments and resources for students.

BSc (Hons) Business Management
BMP4002Business Law
Assessment 2
Report describing the key sources
of laws as the legal context for
business organizations in the UK
Submitted by:
Name:
ID:
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Table of Contents
INTRODUCTION..........................................................................................................................3
MAIN BODY............................................................................................................................4
Businesses & Organizations in the United Kingdom.............................................................4
UK companies and their legal structure................................................................................5
Partnership............................................................................................................................6
General or common partnership...........................................................................................7
Limited Liability partnership..................................................................................................7
Recommendations for IOM Solutions...................................................................................8
CONCLUSION..............................................................................................................................9
REFRENCES...............................................................................................................................10
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INTRODUCTION
Business laws means those rules and regulations which is used for making
various aspects of business develop within an organization (Azhar, 2021). The law
made business development function as per the perspective of legal standards
existing within a country. Business law helps in carrying business without any legal
issues faced by them. These are those laws that has helped in making business run
in more effective manner. As per this legal standards has been formed which helps in
conducting business with more effectiveness. There are various kinds of laws which
creates wider scope for business functions. Nature holds dynamism as it impacts
business directly. The report is based over business organization in UK and there
legal structure. Also advantages and disadvantages in relation to business
organizations has been covered. Then comes IOM solutions which has been
provided in the end.
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MAIN BODY
Businesses & Organizations in the United Kingdom
In the corporate world commercial enterprise business enterprise is
considered as a type of legal business entity formed for the aim of conducting
market based business. This type of business is founded on regulatory systems that
oversee settlement and trade, property rights, and incorporation. The majority of
large commercial and business corporations have little legal liability. Any business
should be structured in accordance with the rules and procedures (Dolna, 2020). In
order to develop understanding about various kinds of regulation and aspects related
to business it has been understood in more effective manner which made
organization develop more effectively. It is critical to understand that if any of the
characters fails to perform in accordance with the regulations, the company firm may
be subjected to prison costs. Incorporated business enterprise and unincorporated
business enterprise are two distinct kinds of business enterprise. As per
unincorporated business organization various aspects related to new business and
its formation has been discussed. Also business enterprises falling in this heads are
very easy to form which makes business initiate without any legal problem which
makes legal obligations removed. Another law that has been used by business is law
of torts dealing with various aspect of business based over principle of vicarious
liability which says that “Master is held liable over wrong conducted by servent”. This
principles can be applied within negligence in relation to duty of care which is hold by
an employer towards employee. This type of action almost often effect in financial
failure, natural object harm, or harsh damage to their buyer or customers over a third
party and is negligent in carrying out that obligation and exercising that control,
vicarious legal responsibility might arise.
For the claim to be successful, there must be proof that the service provided
did not meet the requirements of their profession, resulting in a disastrous outcome.
It is essential for a business entity in United Kingdom to focus on legal laws that are
formulated by government. The commercial enterprise separately implements law
with effective supervision and control in order to conduct effective business (Tessem,
2021). For the development of legal operations related to a business entity it is
important to focus on various strategies which are ethical nature. There are various
companies in international and national marketplace which also follow employment
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laws and policies to develop organizational goal and objectives. This is also one of
the key role of a business to take help of separately developed law department
which helps in monitoring laws and orders of government. It contains a variety of
organizational structures, including the following:
UK companies and their legal structure
The legal structure of a company is considered to be no one-of-a-kind way to
conduct business in it. It is critical to understand that whenever a sole tradership is
established, all of the interest should be carried out in accordance of
rights(Gürkaynak, and Kama, 2018). This has been making various kinds of aspects
changed more effectively by making business conducted effectively. This made
business run more effectively. Such businesses are relatively easy to shape and
have a considerably less intricate shape. This category of commercial enterprise
includes business companies of the most effective sort. This sort of organization has
a single proprietor who operates a business. It is not considered a prison entity
because it lacks the proper registration procedure, such as a personal corporation. In
this firm, the entrepreneur is also fully and alone responsible for all types of sports
related with the enterprise. These firms do not require any complicated paperwork or
a lengthy registration process (Senior, and Swailes, 2018). The type of business entity
does not necessitate documents such as articles of association and incorporation.
Only a reliable resource should be organized for the production of financial
assistance or finances. Only for the purpose of registering to a volume of self-
assessment is registration completed. This is required to be formed by business
which makes business activities managed more effectively. Through these
organizations requires to be handled by one person only making business activity
conducted in more effective manner. These organization are handled by single
owner and all activities has been handled by owner himself. Funds are raised
through friends and family members or by any other personal relation. Management
has been done by persons owning the business carrying business activities. These
organizations makes are very easy to be established which makes business function
in more effective manner. The biggest advantage of these organizations that money
and investment is less which makes business run more effectively(Hiller, and
Shackelford, 2018). Benefits of these organizations is that it has been formed with an
easy process making start-ups and business opportunities generated effectively.
Disadvantages is that while running such business funds are not arranged on time
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which makes loss suffered and business get collapsed. Also the these organizations
suffer lot of problems in running its various process which makes liability come over
owner regarding debts. This means that the person who runs a business has
complete control over it, as well as the profits made by it. The 'challenge in
expansion' is a disadvantage of those types of businesses. This has made
accomplishment of various kinds of goals achieved more effectively which has been
used for conducting business.
Partnership
Such business entities are founded by an agreement in which two or more
persons are worried to run a business with sharing of profit and loss. These
organizations were formed with the primary goal of making money from business
conducted under the umbrella of a corporation. The company's profit and loss are
split among a number of partners. For a partnership, it also enjoys a tax benefit
(Kramer, and Sorabji, 2019). A contract is signed between each of the parties in a
partnership company to carry out an activity. Such events can be of any kind, which
means that an agency's operations must be limited to partners exclusively. Events
can be organized by the government, non-profit organizations, or individuals (Tuuli,
2018). Partnership is a relationship in which more than one person joins forces with
the common goal of achieving a common goal. Partnership corporations, it is
claimed, require significantly less capital and must adhere with strict rules. Whenever
there is an establishment of partnership, it is first necessary to have a agreement
that allocates precise assets and liabilities. After this there is a process of registering
with HMRC. In those types of organizations that are run with the help of more than
one person as a partner. Findings are arranged through personal organizations and
the securing of loans taken by banks. Advantages: The process of establishing this
company may be simple and straightforward. The likelihood of creating big amounts
of money increases as the number of people involved grows. In the partnership
business whole company's development is dependent upon focused approach by
development of a major strategy. In the recent time, partnership also involves risk
factors and should follow ethical practices which are involved in development of
ethical partnership and development process (López Jiménez, Dittmar, and Vargas
Portillo, 2021). Risk sharing is also one of the key disadvantage of partnership which
develops a responsibility of partners to develop different business operations.
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Partnership disadvantages: The accomplice's liability is minimized which makes
various kinds of disagreements caused over the time it has raised and divided
partnership in two types explained as follows:
General or common partnership
In majority of companies general partnership is considered as a common type
of partnership which is formulated by three or four personss. Agreement, proof of
existence, and estoppel are all required (Mili, Gharbi, and Teulon, 2019). This is major
responsibility of partnership to gain focused growth in a set period of time with the
support of a business agreement. In the general partnership, there is a formation of a
company which requires less legal formalities. In order to develop and earn more
profit from general partnership, it is essential for a business to focus on goals and
objectives which are formulated at the starting of financial year. The application of
general partnership also require huge efforts for performing majority of operations.
Advantage: Personal Income Flow, A common partnership allows all partners in a
business to immediately bypass gains and losses in their personal profits taxes. This
is similar to limited partnerships and limited liability companies. As a result, rather
than being treated as a separate commercial venture entity, the earnings earned by
the partnership are taxed at its non-public profit tax rates. This is ideal for tiny firms
where money changes hands quickly and income is a constant battle.
Disadvantage: Protection is in short supply (Watkins, and Marsick, 2021). This makes
splitting of enterprise into a separate criminal entity, there isn't any statutory criminal
protection in place. In this majority has been shown within separation of business
more effective.
Limited Liability partnership
This is another form of partnership that has been based over activities
performed by partners according to there interest within it. These organizations
partners contribution is the key aspect which develops a business to be protected in
more effective manner. In this investment investment by partners are restricted as
per which there roles has been defined within business. The main advantage posse
by such type of business organization is that all responsibility regarding business
handled by partners themselves. These organization are free from legal obligations
making business run in more effective manner. Disadvantage of limited partnership
is that if due to any reason debts are not paid on time then business cannot be
operated more effectively(Pacella, 2018).
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Recommendations for IOM Solutions
As per the analysis it has been marked out that the organization like IOM
solution has been working for long as an sole trader. In order to make its expansion
done within the market the organization requires to follow partnership for of business
which helps in making growth of business possible without any problem. Since these
kind of business helps in developing business without any critical issues (Ripley,
2018). Also these organizations are easy to be formed and does not involve any legal
requirement or huge money investment.
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CONCLUSION
From the above analysis its has been marked out that business laws means those
aspects which are used for establishing business organization in more effective manner. The
report relates over various kinds of business organization existing within United Kingdom.
Also sole trader and partnership has been explained with its advantages and disadvantages. In
then end solutions provided for IOM solution. The above analysis also concludes that it is
important for a business entity to focus on development of a legal business entity in order to
survive at the marketplace in an ethical manner.
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REFRENCES
Books and journals
Azhar, S., 2021. Consumption, capital, and class in digital space: The political economy of
pay-per-click business models. Rethinking Marxism, 33(2), pp.196-216.
Dolna, S.A., 2020. Business barriers of micro-enterprises in Poland in 2016-2018 (Doctoral
dissertation, Kolegium Nauk Ekonomicznych i Społecznych w Płocku).
Gürkaynak, G. and Kama, Ç.O., 2018. Navigating the uncharted risks of covert advertising in
influencer marketing. Business Law Review, 39(1).
Hiller, J.S. and Shackelford, S.J., 2018. The firm and common pool resource theory:
Understanding the rise of benefit corporations. American Business Law Journal, 55(1), pp.5-
51.
Kramer, X. and Sorabji, J., 2019. International Business Courts in Europe and beyond: A
Global Competition for Justice. Erasmus L. Rev., 12, p.1.
López Jiménez, D., Dittmar, E.C. and Vargas Portillo, J.P., 2021. Self-regulation of sexist
digital advertising: From ethics to law. Journal of Business Ethics, 171(4), pp.709-718.
Mili, M., Gharbi, S. and Teulon, F., 2019. Business ethics, company value and ownership
structure. Journal of Management and Governance, 23(4), pp.973-987.
Pacella, J.M., 2018. Silencing Whistleblowers by contract. American Business Law Journal,
55(2), pp.261-313.
Ripley, K., 2018. Getting Down to Business. Environmental Policy and Law, 48(6), pp.378-
384.
Senior, B. and Swailes, S., 2018. The dimensions of management team performance: a
repertory grid study. International Journal of Productivity and Performance Management.
Tessem, B., 2021. Individual empowerment of agile and non-agile software developers in
small teams. Information and software technology, 56(8), pp.873-889.
Tuuli, M.M., 2018. What has project characteristics got to do with the empowerment of
individuals, teams and organisations?. International Journal of Managing Projects in
Business.
Watkins, K.E. and Marsick, V.J., 2021. Building the learning organisation: a new role for
human resource developers. Studies in continuing education, 14(2), pp.115-129.
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