BMP4002 Business Law: Analyzing Legal Structures for UK Business

This report examines the legal context for business organizations in the UK, focusing on different business structures such as sole proprietorships, general partnerships, limited liability partnerships, and limited liability companies. It discusses the advantages and disadvantages of each structure, with a specific recommendation for IOM Solutions to adopt a limited liability company structure for enhanced operational scaling and long-term sustainability. The report also references relevant UK legislation, including the Partnership Act of 1890 and the Companies Act of 2006, and emphasizes the importance of understanding legal responsibilities and duties for effective business management. Desklib provides access to similar solved assignments and resources for students.

Business Management
BMP4002 Business Law
Assessment 2
Report describing the key sources of
laws as the legal context for business
organisations in the UK

Table of Contents
INTRODUCTION ..........................................................................................................................3
Business and Organizations in UK..................................................................................................3
The legal business structure of UK companies................................................................................5
Sole trader:..................................................................................................................................5
General partnership:....................................................................................................................5
Limited Liability Partnership:.....................................................................................................6
Limited Liability Company:........................................................................................................6
Recommendations for IOM Solutions:............................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
A business is known to be the separate legal entity that is actually positioned with the purpose of
attaining major sales revenue as well as income by creating buying as well as purchasing of the
respective products in the market share of the organization. Companies are operating in the
market in which competition is very intense in order to make them function with the suitable way
and can survive in the industry for long time. In addition to it market is the area in which all the
dealers who buys or sells the product come together in accordance to do the tray in order to
sustain in the market area for large in time as well as making sure that enhanced development of
the company is accomplished (Allen, Kraakman, and Khanna, 2021). Moreover to this, John
supporting the people in accordance to deal by exchange of product with money or anything
more valuable. Nowadays several emerging entrepreneurs focuses on start up as they look for the
potential opportunity which can increase their standard of living. Being the entrepreneur and
launching venture in accordance to capital or investment which are there with the entrepreneur
which also support them to decide on the scope, vision and size of the business as well as the
type of the company as well as its following structure which can by large organization, small
company or medium company. Furthermore law business basically assist in data mining the
several legal structure of the business which off the country United Kingdom. Additionally it
also assist in offering the data regarding the several structure of the business and their advantages
as well as drawbacks. The following report will also cover about the recommendation to the
same for the suitable kind of expansion of the business respectively.
Business and Organizations in UK
From the above report it has been concluded that it is very important in order to make it
more functional as well as work there operation in the suitable way. In addition to its business
law paying more emphasis on to its departments as well as its functions. It is commonly running
its operation with the single purpose of attaining more sales revenue in accordance to their
performance and productivity (Bassani, 2021). Respective entrepreneur is being recommended in
order to take the support of the limited liability company in order to scale their business
operation which will lead to the long term sustainability and success of the commercial business
in the market area. Moreover to this it also provides more assistance to the company as well as to
the members of the company in order to possess the professional as well as personal life with

having more conveniency as well as also acquiring the major capital that also supports diamond
earning more profitability as it will lead to move sustainability in the market area of the company
for the long period of time.
Furthermore government made no regarding the partnership act of 1890 in which states that
mutual contract of the partnership by offering several different provisions as well as suitable
management of the commercial enterprise which can attained with the assistance of the articles
of the association as well as memorandum of the association in which article of the association is
the suitably document which is written that shows the obligations as well as regulations of the
company which need to be followed by the management at the time of doing the entire
operations of the organization whereas memorandum of association is the brief treatment which
is useful in maintaining all the activity of the organization in the given time period as it gets done
after it is agreed by all the shareholder (Cartwright, 2021).
The legal business structure of UK companies
The entrepreneur of IOM solution is basically working as the sole trader which is also known as
the sole proprietorship in the specific commercial venture or in relation to the organization ion
solution as in the organization all the function of the business as well as decision making
regarding the organization is taken by the entrepreneur itself. Sam is operating it’s business
venture since the last 8 years and around in last 2 years they’ve been become successful in their
working. As he is the sole proprietor then he was published to pay his all debts and is a single
owner of all the profits earned by the company which can assess the entrepreneur reading
focusing on generating more and more income as well as sales revenue. In addition to it the
respective entrepreneur is focusing on enhancing its business operations as well as focusing on
opting the appropriate structure of the business which can be moved appropriate for them as
there are several structure of the legal business that are mentioned below in brief (Munawar, and
Saputra, 2021).
Sole trader:
It refers to the self-employment in which hole venture is being functioned by the single person
and this type of organization provides the advantages with the positioning of the business in in
cost effective way. Therefore this is very convenient for the people to function their business as
well as it is also one of the most utilised form of the business venture which is opted by several

young and emerging entrepreneurs that can conveniently leads to positioning of the venture on
the small to medium scale. In addition to it they focus on starting a small scale business because
it requires low amount of capital as well as low experience in order to manage the organization
single handedly. The several decisions of the organization can we permanently taken by the
entrepreneur without having any second thoughts regarding the interference of the judgment of
other people of the organization. Moreover to this it is also connected to the several drawbacks
which is liabilities, losses and debts in which the single individual need to bear all of these as
well as several legal taxes by its own.
General partnership:
It is a sort of partnership in which 2 or more than 2 individual who are agree to get involved as
the general partners with the mutual as well as legal agreement of the partnership. The specific
members or the partners of the organization play more emphasis on sharing all the
responsibilities as well as duties equally (Skrabka, and Grmelová, 2021). In addition to it all the
income as well as revenue will be divided on the agreed sharing among all of the existing
partners as well as they will also be obliged in order to bear all the laws and risk in accordance to
their terms. Moreover to this the partners acquires the risk of financial as well as losses and
advantages that is being in occurred in the commercial businesses also they are responsible for
the unlimited liabilities of the companies for all the existing partners but this is more better
option for the individual traders because it requires low mount of capital to start a venture like
this. Furthermore with us several set of skills as well as talent of the partners they agreed to take
several decisions in which they can increase the performance as well as income of the
organization.
Limited Liability Partnership:
This is another type of partnership that gives low amount of debt or liabilities If it is compared
with the general partnership. It is another InFocus to make the responsibility in which they are is
the restriction on the capital or the money that will be spent by the members of the organization
or the partners of the venture. In addition to us commercial businesses is incorporated through
several partners that are basically more accountable to acquire all the income equally as well as
share all the losses but also they do not possess any type of joint liabilities or joint venture.
Additionally this type of partnership is requires to register in the section which need to be in a
college to the legal authorities and their imposed policies (Trakic, 2021). Moreover to this the no

partnership which is partnership act 1907 Imposed by the government organization can get LLP
by acquiring the mutual agreement of the partners as well.
Limited Liability Company:
Limited Liability Company is known as the private limited organization which is basically
belongs under the Companies Act 2006 which shows the brief of the limited liability company
that represents that how the company is being functioned which is needing the private
organization as well as how the organization is actually being focused on dissolve. In addition to
this it is done on the basis of the several legal responsibilities with the reference to the
obligations as well as duties of the people and the main head of the organization that is suitably
aware regarding the laws as well as constitution of the organization (Twomey, Jennings, and
Greene, 2021). Whether more directors are mainly recognised as the head of the venture that
works its operation.
Recommendations for IOM Solutions:
At the time when the company develops then it is mandatory as well as consistent scaling
through which management can take advantage in order to attain success in the market area of
the business. It also assist the commercial enterprise in order to usage as well as function their
business practices in several ever changing situations. Therefore respective entrepreneur should
opt the limited liability organization in order to enhance their operations for the venture of IMO
solutions. The suitable legal system of the Company provides variety of the benefits that also
assist to divide the duties as well as responsibilities of the members with several people. In
addition to it also supports in enhancing the profitability of the company. As it commonly gives
the more cost effectiveness in the planning of tax also. As there are several investors which are
attracted to it because of heads reliable nature that also provides assistant in the formation of the
capital of the investors. It also provides more effectiveness as well as efficiency in the growth of
the company. Hence investors are basically more inclined towards the limited liability companies
in order to attain more capital.
CONCLUSION
From the above report it has been concluded that it is very important in order to make it
more functional as well as work there operation in the suitable way. In addition to its business
law paying more emphasis on to its departments as well as its functions. It is commonly running

its operation with the single purpose of attaining more sales revenue in accordance to their
performance and productivity. Respective entrepreneur is being recommended in order to take
the support of the limited liability company in order to scale their business operation which will
lead to the long term sustainability and success of the commercial business in the market area.
Moreover to this it also provides more assistance to the company as well as to the members of
the company in order to possess the professional as well as personal life with having more
conveniency as well as also acquiring the major capital that also supports diamond earning more
profitability as it will lead to move sustainability in the market area of the company for the long
period of time..

REFERENCES
Books and Journals
Allen, W.T., Kraakman, R. and Khanna, V.S., 2021. Commentaries and cases on the law of
business organization. Wolters Kluwer.
Bassani, G., 2021. Of Viruses, Economic Crises and Banks: The European Banking Union and
the Response to Covid-19. European Business Law Review, 32(3).
Cartwright, M., 2021. Business conflict and international law: The political economy of
copyright in the United States. Regulation & Governance, 15(1), pp.152-167.
Munawar, N.A. and Saputra, F., 2021. Application Of Business Ethics And Business Law On
Economic Democracy That Impacts Business Sustainability. Journal of Law, Poliitic
and Humanities, 1(3), pp.115-125.
Skrabka, J. and Grmelová, N., 2021. Challenges of Law in Business and Finance. Books.
Trakic, A. ed., 2021. Covid-19 and Business Law: Legal Implications of a Global
Pandemic (Vol. 3). Walter de Gruyter GmbH & Co KG.
Twomey, D.P., Jennings, M.M. and Greene, S.M., 2021. Anderson's Business Law & The Legal
Environment-Comprehensive Edition. Cengage Learning.