Business Law Report: Types of Business Organizations in the UK

This report provides an overview of business law in the UK, focusing on the legal formation of different types of business organizations. It begins with an introduction to the legal system and its role in regulating business activities. The report then delves into the specifics of forming partnerships, sole trader businesses, and limited companies, outlining the legal requirements for each. Furthermore, it examines the management and funding aspects of both incorporated and unincorporated businesses. The report concludes by summarizing the key takeaways and includes a list of references. This document is a helpful resource for students studying business law, offering insights into the various legal structures and their implications for business operations in the UK. The content helps understand the process of business formations, management, and funding.

Business law

TABLE OF CONTENT
 Introduction
 P4 Legal formation of different types of business
organisations
 P4 Legal formation of different types of business
organisations
 Conclusion
 References

Introduction
● A legal system contains a range of rules, regulations, procedures and guidelines
in order to help the Government in maintaining an effective control and monitor
over each and every activity that has been performed in all over the country.
● The power point presentation shows detailed information regarding various types
of structures of business and their legal formation procedure.
● In addition, the ppt also shows information regarding way of management and
funding of these types of businesses.

P4 Legal formation of different types
of business organisations
 Different types of business organisations:
On the basis of legal formation procedure, the businesses can be
categorised into following types:
Partnership:
 As per the legal system of UK, for formulation of a partnership, a
business does not need to follow any legal requirement.
 It can be formed by creating a partnership agreement among two or more
individuals who agrees to perform business activities together and share
profit or loss from the business as well.
Sole traders:
 Same as partnership, there is no such legal requirement regarding
formation of a sole trader.
 It can be formed by establishing an office and start performing business
activities. Owner of sole proprietorship is whole and sole of the business.

Continue
Limited company:
 Limited company are formed by fulfilling a range of legal
process maintained in the companies act 2006 of UK.
 The act provides a lengthy procedure that is needed to be
followed by each business unit in order to form a limited
company.
 Therefore, formation of a limited company requires a huge
money and time of the promoters.

P5 Management and funding of different
business organisation
 On the basis of management and funding, businesses can
be divided into 2 parts i.e. incorporated business and
unincorporated business.
 Management and funding of different types of business
organisations can be analysed as under:

CONTI…
Basis Incorporated business Unincorporated business
meaning Incorporated businesses
are those that are being
formed as per required
legal procedure.
Unincorporated business
can not be formed through
any of the legal formation
requirement.
Management These are being managed
by following a set
procedure. These are
owned by shareholders
and managed by BODs
and managers.
Unincorporated
businesses are owned and
controlled by the owner of
company only.
Funding These businesses can
generate funds through
issuing shares to general
public.
Generation of funds is a
typical tasks. they can not
issue shares for fulfilling
funding requirement.
These business generally
runs through credit
purchase and generation
of funds from taking
outstanding grants from
banks and other financial
institutions.

Conclusion
 The study has also concluded that there are various types of
business structures in which a firm can be formulated.
 The law provides several requirements for formulating
each type of business units.

REFERENCES
 Dwivedi, Y. K., and et.al., 2016. Social Media: The Good, the
Bad, and the Ugly: 15th IFIP WG 6.11 Conference on e-Business,
e-Services, and e-Society, I3E 2016, Swansea, UK, September 13–
15, 2016, Proceedings (Vol. 9844). Springer.
 Hunt, A. and Wheeler, B., 2017. Brexit: All you need to know
about the UK leaving the EU. BBC News. 25.
 Kitching, J., Hart, M. and Wilson, N., 2015. Burden or benefit?
Regulation as a dynamic influence on small business
performance. International Small Business Journa. 33(2). pp.130-
147.
 Lloyd, I. J., 2017. Information technology law. Oxford University
Press.

THANK YOU