Business Law Report: Unit 7 Activity 2, Nescot College, 2020/21

This report, created for a Business Law assignment at Nescot College, explores key aspects of business law. It begins with an introduction to the importance of business law in regulating business activities. The report then delves into the legal formation of various business organizations, including sole proprietorships, partnerships, and companies, highlighting their management and funding methods. It further discusses the advantages and disadvantages of each organizational structure. The report also examines various legal solutions, such as arbitration, negotiation, mediation, and conciliation, as alternative dispute resolution methods. Finally, it compares and contrasts different sources of legal advice, emphasizing the benefits of alternative dispute resolution. The report concludes by summarizing the key points and providing references for further reading.

Unit 7- Business Law (Activity 2)

Table of Contents
• Introduction
• Types of business organizations which are legally formed.
• How business organizations are managed and funded
• Recommendations for legal solutions
• Compare and contrast different sources of legal advice
• Conclusion
• References

Introduction
The business law is an important
part of the society as helps in
regulating the activities of the
business. these include various
laws under its ambit so that each
sphere of the business is covered
and effective running of it is
ensured.

How business organizations are formed
legally.
There are various kinds of business organizations which are
formed legally in the state. These are made for as per their
management and ownership but the sole motive of every
organization is just to generate maximum profitability and
revenues. Different kinds of business organizations are
narrated thereunder-
• Sole proprietorship
• Partnership
• Company

How business organizations are managed
and funded
In order to make the business grow and succeed, it is essential
that its management is effective enough to carry on the
functions of it. Every business organization has different ways
of raising its fund and distinct management so that there is
effective and smooth functioning of it. The correct allocation
of funds and the management can help the organization to
achieve its business objectives and to generate maximum
revenue. A discussion on the management and funding of the
business organizations are illustrated thereunder-
• Sole proprietorship
• Partnership
• Companies

Advantages and disadvantages different
types of business organizations
Every business organization has its advantages and
disadvantages that are illustrated below
• Sole proprietor- These types of business organizations
involves raising limited capital for its working and the
management rest in the hand of single person so it is its
biggest advantage as there is no sharing of power and
responsibilities. The disadvantage of this business
organization is that there is unlimited personal liability of
the owners for the debts and liabilities of the venture.

Continued…
Partnership- Its biggest advantage is that there is sharing of
responsibilities and working as per the skills and knowledge of
every partner but its main disadvantage is that one partner can
be held liable for the action of others and also in case there are
2 partners and one wants to dissolve the firm, the whole
partnership needs to be dissolved.

Continued…
Company- The main merit of establishing this business
organization is that there is limited liability of the members but
its disadvantage is that there is a time consuming, costly and
complex process of incorporating and winding up the
company.

Recommend various legal solutions
There are various issues that are
faced by the business organizations
so in an attempt to bring speedy
disposal of the cases that is cost
and time effective, there are
various alternate dispute
resolutions that are enumerated
under Civil Procedure rules, 1986.
These are discussed thereunder-

Continued…
• Arbitration
• Negotiation
• Mediation
• Conciliation

Compare and contrast different sources of
legal advice
There are many legal advisors which are given to parties so
that they can bring solution for their dispute and their case is
solved in an effective manner. The parties have 2 options to
solve their dispute which involves firstly litigation where there
is involvement of court while the other is alternate resolutions
that brings speedy disposal to the dispute and is time and cost
effective. By opting for alternate dispute resolutions, the
parties can solve the dispute in a fast manner and there is no
harm to their reputation as the dispute can be solved in a
confidential manner.

Conclusion
It is concluded from this PPT that there are various business
organizations that are formed as per their size and scope and each
of the organization has different management and ways of
accessing funds. Each business has its merit and demerit of
establishing. Moreover, there are various dispute resolutions that
can be opted by businesses in order to resolve their case in a
speedy manner which includes conciliation, arbitration,
negotiation and mediation