Analysis of Business Mediums for Architects, Musicians, and Patents

This report examines the most appropriate business mediums for different scenarios, including a group of architects, a group of beauticians, and up-and-coming musicians. It explores the advantages and disadvantages of each business structure, such as private companies, partnerships, and sole proprietorships. The report also discusses the concept of self-employment and its implications, using the case of a delivery driver to illustrate the complexities of employment status. Furthermore, the report delves into the criteria required for patent eligibility, including statutory invention, novelty, and usefulness, emphasizing the legal rights associated with patents and their importance in protecting intellectual property. The report provides a comprehensive overview of business structures and patent regulations.

Contents
Introduction......................................................................................................................................2
PART 1............................................................................................................................................3
a) Most appropriate business medium for a group of 20 architects..........................................3
b) The most appropriate medium of business for three friends.............................................3
c) Most appropriate business medium for an up and coming musicians:.................................4
PART 2............................................................................................................................................6
Self-employed:.............................................................................................................................6
PART 3............................................................................................................................................8
The criterion needs to be satisfied in order for a patent to be granted.........................................8
Advantages..................................................................................................................................9
Disadvantages:...........................................................................................................................10
Conclusion:....................................................................................................................................11
References......................................................................................................................................12

Introduction
Most appropriate business medium for a group of 20 architects who wish to establish a small
business to attract property developers is private company limited by share. This creates a
corporate image and boosts the value as the bigger corporation than partnership. If shareholders
or director change then this medium of business is not affected by it. The control is difficult than
partnership as decisions have to be approved by the majority shareholders (Delic, 2007). In line
with that many company mostly delivery company offer self employment status where the
employees gets higher flexibility like tax concern, working hours and free from 9-5 traditional
job.

PART 1
a) Most appropriate business medium for a group of 20 architects
Most appropriate business medium for a group of 20 architects who wish to establish a small
business to attract property developers is private company limited by share. Private company
limited business medium is different from other business medium as they have legal identity of
their own and the financing is not linked with the personal finances (Seaquist, 2012).
 In this business medium the decisions must be approved by the shareholders and shares
must be registered under company’s goal house.
 This business has limited liability as each share holder is liable only for the amount
unpaid on their part
 They can increase share capital to raise money and that can be putted back to the
company. The financing is easier in private limited company.
 This creates a corporate image and boosts the value as the bigger corporation than
partnership.
 If shareholders or director change then this medium of business is not affected by it.
 The control is difficult than partnership as decisions have to be approved by the majority
shareholders.
 There is a problem of red tape but this is not so much like public limited company in
setting up this business medium.
b) The most appropriate medium of business for three friends
The most appropriate medium of business for three friends who have just qualified as beauticians
is partnership where more than one people can carry out a business. They are treated as sole
traders for the tax savings purposes. The profit and loses gained by the partner is subject to
income tax. For this reason, each year the partner self assessment is required. Lockstep principle
is used by British law firm. According to the company act 1956, the maximum number was 10-

20 for the banking business or others. According to the new company act 2013, the number of
partner should not be more than 100 in case of partnership.
A detailed partnership agreement is required to set with a range of term and conditions for the
partner which includes work distribution, financing, profit distribution, the situation happening if
any partner die or dissolve the partnership business (Siedel and Haapio, 2016).
If the partner is known to each other and agree to improve the mutual interest by cooperation
then a partnership agreement is best suited. As they are friend which is matched with the above
definition so i suggest partnership as the most appropriate business medium for them. Partnership
may be done with individuals, organizations, school, business and govt.
Partnership agreement: It is not required by law to create a partnership agreement but this is
helpful to maintain the partnership relations among the partner. The common law of partnership
business stated that the partners are liable for obligations personally. But now a day, this liability
is limited as different form of partnership have evolved.
General partnership: If all partner managed the business and all are responsible for all debt and
liability then the joint liability is created and this is the general form of partnership.
Limited partnership: In limited partnership, the partnership liability is limited with the
investment of the partner so they forgo their responsibility to manage the business.
LLP: This is the most recent form of partnership. In limited liability partnership, all partner have
limited liability
Some common issues discussed in the agreement of partnership:
 A share of partnership profits is received by partner up to a certain amount specified in
the agreement.
 If any additional amount of profit earn in any month then this should be distribute to
those partner who have more contribution to earn this
c) Most appropriate business medium for an up and coming musicians:
Most appropriate business medium for up and coming musicians are a sole proprietorship which
is a single owner business which is not registered under corporation, limited liability or

partnership. In this business medium the musicians can work as an independent contractor,
require less paperwork and also easier maintaining. All profits is received by the sole traders and
also responsible for all debts and losses. Musicians may use any trade or business name rather
than his legal name
Law of individual entrepreneurship in UK
UK law defined sole trader as a simplest type of business. To start up an entrepreneurship,
registration is required with HM revenue and customs. This straightforward registration is done
as self employed for the tax and insurance purposes. Musician is responsible for submitting
annual tax return and business records.
If any sole traders earn revenue more than 83000 pounds a year, he or she needs to register for
value added tax. Staff can be employed by sole traders but personally responsible for the losses
and profits and liabilities (Kabi, 2018).
If anyone not registered under HM revenue and customs but start work for themselves, they
considered as self employed by the UK government.
Advantages
 Sole traders are the most simple business medium compared to other business structure.
 The record keeping requirements are more straightforward
 All operational decisions are taken by the sole traders and they are also responsible for
raising capital for the business
 Sole traders can invest their own capital and can access any business loan if required
without any delay for decision making.
Disadvantages
 It is difficult to distinguish the personal income and business income
 In every year, a sole trader is responsible for income tax and personally liable for all
liabilities.

PART 2
From the job advertisements of Sleek Driving Ltd. Taran comes to know that they need a self
employed drivers to carry out the national deliveries. The employment status was self-employed
and Taran needs to have own vehicle with clean driving licenses. He will not be work beyond his
ability and also responsible for his tax payment.
As there was flexibility of the role so Taran likes to do the job. But the real scenario is different
as he don’t get work following week if he hasn’t work at least 30 hours and allowed to take time
off without Sleek's approval. He also needs to wear a uniform and come to staff meeting.
The employment status is determined by the duration of work or contract of work done with a
company. The determination of employment status is important because employers are liable for
giving the rights to employees according to their status if they are not self employed (Kirk, n.d.).
Employee, worker and self employed are the three categories. The right and obligation is
different for these different categories (Clark and Weismantle, 2017).
Self-employed:
Employment status is the position of a worker in a company on the basis of the contract of work
or duration of work done. The majority of people in work are employees. A contract need not be
in writing it exists when you and your employer agree terms and conditions of employment. If
you are self- employed, you do not have a contract of employment with an employer.
Now days the working conditions are developing and more flexibility are coming under different
terms and conditions. In line with that many company mostly delivery company offer self
employment status where the employees gets higher flexibility like tax concern, working hours
and free from 9-5 traditional job. They have few employment rights which is governed by the
term and conditions determine by the owners. Though these rights are not same with the rights of
workers and employees but still they have protection for their health and safety and
discrimination. They don’t get the holiday payment.
You are more likely to be contracted to provide services over a certain period of time for a fee
and be in business. Employer don’t have employment rights as such if you are self- employment

as you are your own boss and can therefore decide how much to charges for your work and how
much holiday to give yourself. You do have some legal protection. You must not discriminate
against and you are entitled to a safe and healthy working environment on your client’s premises.
A worker may be a full-time employee, part- time employee, or an employee on a casual basis.
Part-time wage labor could combine with part-time self employment. The worker could be
employed also as an apprentice (Employment status of postsecondary completers in 2009, n.d.).
Bogus self employment is a term growing in 2015 and highlighted by the Citizens Advice
Bureau. This report estimated that around 46000 workers were wrongly self employed in UK.
Some workers working under the self-employment status but the responsibility resembles by the
employers willingness. In such case employees are losing out the minimum wage, pension
facilities, sick pay, holiday payment and many more entitlements.
Taran face the same problem discussed above. So I advice Taran to ask the employers to revise
the job status to an employee as…
 Taran has no control over the working hours
 Sleek Driving Ltd. Determines if Taran can take time off
 Sleek Driving Ltd. Provide the uniform with the logo during the working hours.
So now Taran should directly speak to his employer to address the issues. If thre is no possibility
to achieve a suitable solution then Taran should seek for legal advice from a solicitor.

PART 3
The criterion needs to be satisfied in order for a patent to be granted
Patent is a legal right create an intellectual property for the owners. This is a way to ensure the
legal rights of owner to exclude others from using; importing, producing and selling the
invention and it enable a public disclosure. Patent eligibility criteria should be fulfilled to get the
patent. Those criteria are discussed below:
The basic process of receiving a patent is done through passing three doors. The first door is
easiest and large door that is having a patentable subject matter. The second door is smaller than
first door and difficult to enter. This is the novelty of the invention. The third door is tinier and
extremely difficult to fit and this is the non-obviousness of the invention.
Statutory invention or subject matter eligibility: Any new or useful way or processes,
manufacturing or composition matter or machine is defined as patentable subject matter. To
fulfill the patent eligibility criteria, this subject matter must be covered. Law of nature is not
patentable subject matter such as sunlight. Some non-exhaustive patentable subject matter is
medicine, computer software programs, manmade bacteria, business method etc.
It must be a new invention: Before the patent application date, if the invention is not known by
anyone or not used by any other in foreign country and home country then the invention is
considered as a novel invention. The patent will be denied if it is described in printed publication
or in public sale or use in more than one year period prior to the publication date. There is also
one year rule which means the novelty of patentability will destroy if someone delays to do the
application
Invention must be useful: The invention must have utility if it is a utility patent. This means
that the things must have a sound theoretical basis for being useful.
It must be non-obvious invention: When the use or the functions can’t be something that is like
the same step of an already established patented invention then this is called the non-obvious
invention.

There are many arguments revolving around this issues and it is a difficult obstacle to review the
patent process. This non obvious test starts by asking a question whether the invention is an
obvious step. This is a subjective matter so the most contested part of the review process of
patent. The review process is different to reviewers like one may think an invention obvious but
other examiner look the same prior art and show an invention leap and ultimately non-obvious.
Advantages
Key advantages and disadvantages of patenting an invention under the Patent Act 1977: The
importance of invention in the progress of technology, useful arts and science is very significant.
And it is required to give exclusive right to the inventors to incentivize them to share their
invention so that world becomes smarter. For this reason, the government enacted a law to secure
the rights of owner for a specific time period. This is done through the patent which has many
advantage as well as disadvantages. The most obvious advantages are exclusive rights, sparks
innovation and easily commercialize. The advantages are discussed below:
Exclusive rights: Exclusive rights are those rights to exclude anyone from producing, selling,
using and importing the innovation. Producing means no one is allowed to create the physical
features and claim the invention. If anyone do this in the home and bring it to the public then it
would violate the first rights of owner. The term making is confusing and the clear understanding
is needed that any code, position the circuits arrange the storage centers is considered under this
fact. An ICT infringement complaint can be filed by the patent holder but there is no way to
measure the monetary damage.
Sparks innovation : Innovation is a movement and an interactive process which is never ended.
Only attracting first of its kind, earth-shattering inventors is not the intention of patent system
rather it means the improvement of the way of doing things more smartly. Patent give the right to
inventors sharing the work or contribution to other inventors so that they can get the insights how
they perform their act and find the more efficient way to come up with a new attractive outcome.
Easily commercialize: Having a granted patent is an important intellectual asset like a bank
account. Patent has commercialization advantage. That means each party easily determines the
value of patent based on the objective criteria.

Disadvantages:
Difficult to acquire: Acquisition of patent right is not so easy as it is difficult to come up with a
new useful innovation in this gigantic world of knowledge. It required lot of time and efforts to
be a cutting edge of the technology. Basically it is more difficult to define the problem than the
solution itself. Trusted patent attorney may give their opinion on patentability before fuming to
headfirst.
Dealing with infringers: The biggest challenge and fear to most of the innovators is
infringement. To reduce the fear, innovators motivate to seek the protection of the patent.
Limited time: It needs 15 years of protection to protect the ornamental qualities. Patent don’t
make to the end of life all the time as the maintenance of enforceability is expensive. After
expiration, anyone can produce, sell or import invention.

Conclusion:
Most appropriate business medium for a group of 20 architects who wish to establish a small
business to attract property developers is private company limited by share, for three friends who
have just qualified as beauticians is partnership where more than one people can carry out a
business and for an up and coming musicians is a sole proprietorship. Taran should directly
speak to his employer to address the issues. If there is no possibility to achieve a suitable solution
then Taran should seek for legal advice from a solicitor. Parent ensures the legal rights of owner
to exclude others from using, importing, producing and selling the invention and it enable a
public disclosure. Patent eligibility criteria should be fulfilled to get the patent.

References
Clark, S. and Weismantle, M., 2017. Employment Status, 2000. [Washington, D.C.]: U.S. Dept.
of Commerce, Economics and Statistics Administration, U.S. Census Bureau.
Kabi, A., 2018. The Law And Your Business. Quay.
Kirk, D., n.d. Employment Status.
n.d. Employment Status Of Postsecondary Completers In 2009.
Seaquist, G., 2012. Business Law For Managers. San Diego, CA: Bridgepoint Education.
Siedel, G. and Haapio, H., 2016. Proactive Law For Managers. Abingdon, Oxon: Routledge.