Business Law - Classification of Business Organizations: Task 2 Report

This report provides an overview of the classification of business organizations, focusing on the UK context. It begins by defining and differentiating between sole proprietorships and partnerships, highlighting their advantages and disadvantages. The report then delves into the different legal structure...Read More

Business Law
TASK 2

Classification of business organizations
Solo proprietorship
 In this partnership business is owned by single person. There are some
advantages of the solo proprietorship.
 In this they make their own Dickinson Other advantage of the solo proper
ship is that they will only the recipient of the business they only get
profit.
 They do not have to share their profit. They have their own liability.
Partnership
 Partnership is build with more then 2 persons. In the partnership business
they have to share equal profit and they have to share equal liability.
 Most of the people start their business with the partnership because.
 More partners means more capital in the business but there are some
disadvantages as well in the partnership

Advantages and disadvantages of different legal
structure
 United Kin is offering different structures for company they all have their
own advantages and disadvantages as well.
 The best approaches if they are instead to forming is to engage with the
company that can assist them in determine that best for the collaborate
goals.
 By using any company which which can offer quality advice and
formations , they will be fully prepared to make the proper decisions.
 There are two different legal stature which can be followed by companies.

To Be continued
Private limited company
 Private limited companies are separate legal entity in a public limited
companies shares are soled to pubic.
 Most of the finance for company come from public shares. Minimum
50,000 dollars share capital are provided to the public. PlC companies
are called Publicly trade companies.
 In a public limited companies also have their own legal identity.
Companies have to attached their in the list of stock exchange.

To Be continued
Advantages
 Members in the private limited company are well known to each other
and this is advantage for them there all control in the hand of owners
capital.
 In the management of affairs and a conduct of business has more greater
flexibility
 Statuary meeting is not required after submitting the statuary report
 There are only two directors in private limited company
 One of the best thing about this companies are limited liability because
of this member of company enjoy facilities
 It also has advantages of a public company and partnership
 After reviving a certificate of incorporated to company they can start
their business.

To Be continued
Public limited companies
Public limited companies In a United kingdom are governed by a companies act
2006.his companies have more capability to rise their fund as compare
to the private companies. They have to listed their shares on the
London stock exchange this can attract a larger amount of the fund
from mutual funds , institutional traders and hedge funds.
Advantages
 Becoming a public corporation is an invite from the partial ownership ,
invitation which can reach 1000's of people which is depending on the
brand size
 Personal liberates can be reduced through the public limited company
 In any company attached with public limited company then it can be
beneficial for their brand name. They can increase their value in the
market
 Huge amount of investment from the public fund.

Funding For Business
There are different different funding methods for an organization to in vest in
their company. By using this all sorceress companies can invest on their
business. There are 5 methods of funding.
Government grands
 Government provide funds to the companies through the government
agencies at least 2 external viewers and research by internally award
committee review each applications.
 They make short list according to the ranking. Project are funded by
government and application of projects are informed.
 They take fund from the government for their business. It is beneficial
because they do not have to pay that much interest on the fund they are
taking.
 This is one of the best method and they have to pay very low amount of
interest.
 But it is not easy to take involvement from this method. They have some
rules and regulation in this method.

To Be continued
Crowdfunding
 There are two types of Crowdfunding reward based and equity based
crowd funding.
 Just for staring a business for small firms they can pre-sell a services or
products.
 People buy a share from for in the exchange of money. They take some
profit share of that particular firm.
 In a reward crowdfunding craters make funding targets.
 Anyone who is interested in it project must v reach to its amount which is
targeted.
 When they have enough funds for their projects then craters of project
have to fulfil their promises.

To Be continued
Rise from inverters
 Companies can rise their fund through the inverter they have to show their
investment plans to the inverter and if they are interested in the projects
then they can invest in their business.
 There are many people who are interested to invest their money on
companies. Organization's have to find those inverters .
 When year complete then they have to give reward from their profit.
 This is one of the common method use by company.

CONCLUSION
 On the basis of above discussion, it has been concluded that how legal
system has been given impact on the businesses.
 Study explained how the legal system works under the required
constitution.
 Above it analysed and explained the role of government and critically
evaluate the legal system of UK.
 Apart from this, report analysed the different classification of business
organizations in both public and private sectors along with some specific
examples as well.

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