A Comprehensive Report: Business Structures, UK Sectors, and HR

This report provides a comprehensive analysis of business structures, the UK economy's sectors, and human resource management policies. It begins by examining various legal statuses for businesses, including sole trader, partnership, and public/private limited companies, detailing their strengths and weaknesses. The report then analyzes three key sectors of the UK economy—primary, secondary, and tertiary—assessing their value and contribution. Finally, it explores the importance of human resource management policies, specifically health and safety, and equality and diversity, in fostering a modern workplace, using ABC consultancy services as a case study. The report emphasizes the impact of the COVID-19 pandemic on businesses and the government's efforts to support startups. It also highlights the significance of choosing the appropriate business structure and the importance of adapting to market changes. The report aims to provide insights into the UK business environment, aiding new businesses in making informed decisions.

Structure of
business

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK 1............................................................................................................................................3
Various legal statuses of business that new business may adopt along with the strengths and
Weaknesses and strengths of these legal statuses for the business..............................................3
TASK 2............................................................................................................................................8
Three sectors in UK economy in which a business can easily operate and differences between
them. Description of value of three sectors to the UK economy.................................................8
TASK 3..........................................................................................................................................10
Two policies related to human resource management and comment on their importance to
modern workplace (Health and safety policies and equality and diversity policies).................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business plays an important role in development of whole economy and also generates
employment opportunities in the economy (Baker, 2021). Recently the global pandemic Covid-
19 has impacted various operations and functions of business which were present in the economy
of UK. Covid-19 has lead to shutdown of several business organisations and also reduced
profitability of different enterprises. The government of United Kingdom is trying hard to
overcome through the situation which is created by Covid-19 and is also coming up with new
plans for business start ups. In this report major legal statuses which a business can adopt from
marketplace are explained in a precise manner. This report also contains a brief analysis of three
sectors of UK economy in which a new business can easily operate. This report it can be also
concluded that human resource management related policies are effective in development of
modern workplace. In this report example of a newly established business ABC consultancy
services is taken into consideration. The company mainly provides consultancy solutions to
major companies at the marketplace and is situated in the heart of London city.
MAIN BODY
TASK 1
Various legal statuses of business that new business may adopt along with the strengths and
Weaknesses and strengths of these legal statuses for the business
It is very much important for a person to analyse all the strengths and weaknesses of different
businesses in order to develop effective approach at the marketplace (Carillo, 2017). Due to the
effect caused by Covid-19 pandemic on business environment it is compulsory to determine all
the factors related to different start-ups. The following are several strengths and weaknesses of
different companies which are mentioned in this table:
Legal status
defined
Strengths Weakness
Sole trader  The business in
sole trader is very
easy to establish in
the business
 Sole trader has unlimited
liability attached to the
business and owner is
solely responsible for

environment.
 Several and
important business
decisions in sole
trader is taken by
owner of the
business.
 Sole trader has
complete control
over all the
activities and
functions of a
business (Díez-
Martín, 2020).
 Profit sharing is
limited in this type
of business and
owner takes all
profit.
profit and loss.
 In this art of business
owner is sometimes unable
to manage funds for
expansion of the business.
 The work time in sole
trader is high as compared
to other types of
businesses.
 It is hard for a sole trader
to compete with a large
firm at the marketplace or
with a multinational
company.
 There is a lack of proper
skills in a sole trader to
manage a business
organisation.
Partnership  Partnership firm is
easy to set up at
marketplace in a
short span of time.
 In partnership
there is a huge
availability of
funds due to
investment done
by other partners.
 The main
advantage of
 The major disadvantage of
partnership is that it creates
unlimited liability for
different partners.
 The sharing of profit is
done between two or more
people who lead to
minimise the revenue.
 The potential for different
disagreements is there in
major operations and
functions of partnership.

partnership is
sharing in order to
formulate mutual
decisions for the
business firm.
 The management
related to major
functions and
workload is also
shared in
partnership.
 In partnership
partners have
different skills
which are
important for
performing
different business
activities.
 In partnership the major
decision which are taken
by the partners are binding
and compulsory for rest of
the partners to follow.
 In operations and functions
of partnership it is difficult
to raise finance and
funding for the business.
 There is a complexity in
decision making in major
functions of partnership
due to availability of two
or more persons (Eraydin,
2020).
Public limited
company
 Limited liability is
the major strength
of public limited
company to
perform different
business functions.
 A public limited
company has a
separate legal
identity at the
marketplace.
 The public limited
 It is hard to set up a public
limited company at the
marketplace due to
different legal
requirements.
 In public limited company
the control of owner over
shareholders is very less as
the shareholders have
voting rights.
 Sometimes according to
situation the company is

company is
generally more
flexible in nature
than other types of
companies.
 In a public limited
company the
finance related
records remain
relatively private
for a business
entity (Ghose,
2018).
 The main source
of capital in public
limited company is
through sale of
shares at the
marketplace.
unable to sell shares to
general public.
 In public limited company
it is hard and stiff to
manage different functions
and operations due to
complexity in operations.
Private limited
company
 The private limited
company also have
limited liability
related to
operations.
 There is a separate
legal identity
gained by private
limited company
for performing
different functions.
 The private limited
 The private limited
company is hard to set up
at marketplace due to
different complex legal
requirements.
 The control on share price
in this type of company
depends on flexibility of
market.
 There is a risk of takeover
by other professional
companies due to

company is more
flexible than a
public limited
company.
 There is an ease in
buying and selling
shares for bringing
huge investment in
the business.
 In a private limited
company a good
amount of capital
can be raised
through the sale of
shares to general
public.
availability of stock
exchange.
 The directors of private
limited company are
influenced by short term
major investors at the
marketplace.
In order to start effective business after Covid-19 at the marketplace it is essential to
establish a public limited company. The ABC consultancy services will be a public limited
company which will take support of government for raising funds for business purpose.
Company will hire professional management and staff who provide effective advice to different
companies which are surviving at the marketplace (Ghose, 2017). After the analysis of whole
table it can be concluded that ABC consultancy services will create a separate legal identity in
the market. Due to the presence of several advantages and merits it is essential to establish a
public limited company in order to minimise risk associated with the business. Funds will be
raised from bank as a personal loan due to the effect of Covid-19 pandemic. The company will
also provide consultancy services which are present outside the country to generate precise
revenue. ABC consultancy limited will also attract major investors from the marketplace in order
to sell shares at the marketplace. There are several strengths of a public limited company and risk
associated with the business is also low in different operations. It is beneficial to choose public
limited company as a business start up in the situation created by Covid-19 pandemic. ABC

consultancy will develop different strategies and also hire professional management to handle
market situation created by Covid-19.
TASK 2
Three sectors in UK economy in which a business can easily operate and differences between
them. Description of value of three sectors to the UK economy
There are different sectors present in the economy of United Kingdom which are continuously
engaged in different functions. The government continuously supports different sectors with
different rules and regulations to overcome situation of different crisis. Three sectors are
considered as a major contributor to gross domestic product of whole economy (Hong, 2017).
The contribution performed by all of the sectors to economy is vast in nature in terms of
monetary and non-monetary benefits. In the era of stiff competition different companies at the
marketplace function in relation to major sectors which are present in the economy. National
income of whole country is increased by different sectors that are present in the economy. The
explanation of three different sectors which present in the economy of UK and their value is
mentioned below:
 Raw materials (Primary) - The primary sector of UK economy is present in the
economy to facilitate transactions and functions related to raw materials. This sector
mainly deals with the agricultural activities which are performed to transform raw
materials into final goods and services. Agriculture sector is dedicated to provide
employment opportunities to different population which is engaged in agricultural
activities. Primary sector directly or indirectly involves whole agriculture related sector in
itself which is major point. The primary or raw materials related sector also provides
daily wages to different workers who work for the business functions. Primary sector of
United Kingdom also involves conversion of raw materials to finished goods which is
essential for the whole economy (Lee, 2017). The major business organisations
concerned with primary are taking essential help from different sources for performing
different transactions. The government of United Kingdom is also involved in facilitating
primary sector in a precise manner with the introduction of different rules and regulations
imposed by government.

 Manufacturing (Secondary) - On the other hand manufacturing sector of United
Kingdom consists of different industries which are involved in manufacturing process.
The secondary sector comprises of various small, medium and large industries which are
directly involved in manufacturing transactions. The economy of United Kingdom is
majorly benefitted with secondary sector as there is large number of industries present in
economy. Industries which are present in different regions of United Kingdom
manufacture different goods and services which are beneficial for society. Government of
United Kingdom brings and introduce different organisational policies which are stable in
nature for supporting manufacturing industries. These industries also develop precise
strategies in order to provide quality goods to customers at the marketplace. The
competition between manufacturing industries is beneficial for whole economy. Major
objectives and aims of these industries are also helpful in achievement for economic
goals. Manufacturing industries also contributes to gross domestic product and national
income of a country. The secondary sector which is present in economy of UK also
provides employment opportunities for different sections of society. Government of
United Kingdom is also coming up with different policies and plans to facilitate business
development in secondary sector. In the functions performed manufacturing sector of
United Kingdom, social welfare is also counted which is beneficial for whole economy.
 Service industries (Tertiary) – In the economy of United Kingdom service industries
play a major role by providing crucial and effective services to different customers. The
tertiary sector of UK economy also includes various global companies which are present
in the economy. Service sector is majorly concerned with producing quality services for
customers and people of society (Moşteanu, 2020). The tertiary sector also includes
different companies which are performing operations at the marketplace to provide
quality services. Government is involved in bringing many different policies and
regulations which are beneficial for whole tertiary sector. After the introduction of
different rules and regulations related to service industries many companies are surviving
at the marketplace. After the market situation created by Covid-19 it is essential to keep
in mind different policies for effectively performing different operations at the
marketplace. In the era of stiff competition between different companies of United
Kingdom it is essential to abide with rules and regulations of government. The current

market situation is continuously improving after the effect created by Covid-19 due to
several steps taken by government. Society is getting improved day by day due to
different policies and plans which are formulated by government. Many companies in the
global market are taking assistance support of government to generally perform different
operations in a precise manner. In order to start a company related to tertiary sector it is
essential to take support of different government policies for business survival.
Government of United Kingdom is also coming with funding and loan support in order to
give assistance to different organisations related to tertiary sector.
TASK 3
Two policies related to human resource management and comment on their importance to
modern workplace (Health and safety policies and equality and diversity policies)
Human resource management is considered as backbone of an organisation which is helpful
in achievement of different goals and objectives. At modern workplace human resource
management is effective in managing large number of employees in a precise manner. There are
several organisations in the global market which hire professional HR management for
performing different operations. Various functions and strategic roles which are played in an
organisation by human resource management are helpful in development of whole organisation.
After the impact caused by Covid-19 at the marketplace, many companies are giving utmost
focus on different functions of HR management to gain competitive advantage. In the era of stiff
competition between different companies it is essential to take support of different HR functions
for achieving business targets (Sharafizad, 2017). Human resource policies are also considered as
brief approach which is essential for development of different employees in a precise manner.
The various functions which are played by human resource management are also helpful in
maintaining culture and ethic in whole organisation. A business organisation in global
marketplace hires professional management and formulates precise strategy for gaining
efficiency in operations. Human resource management of an organisation also follow different
rules of employment legislation to perform operations in a smooth manner. Health and safety
priorities of every employee should be priority of every organisation in order to maintain
effectiveness and efficiency in the organisational activities. Many business organisations also
hire professional human resource managers for fulfilment of different duties and responsibilities

of whole organisation. Covid-19 has created a worst situation in market which can be only
handled by professional management which is present in ideal organisations. The different
companies at the marketplace also formulate precise strategy in order to achieve different
organisational targets. Major companies are involved in retention of employees and managing
precise culture in the organisation to achieve efficiency in different operations (Trad, 2017). The
business organisations are also involved in development of different goals which are achieved
with help of professional strategy for competitive advantage.
Equality and diversity policy - Age, handicap, gender reassignment, marriage and civil
partnership, pregnancy and motherhood, ethnicity, religion or belief, sex, and sexual orientation
are among the nine characteristics prohibited under the Equality Act 2010. The Equality Act
refers to certain qualities as "discrimination laws." It is critical to have a policy in place to
decrease incidences of prejudice and to guarantee that proper action is done in the event of an
occurrence. Having a diverse staff has several advantages for your company. Using a workforce
with a wide range of experiences and identities can help you better understand and cater to the
demands of a larger client group. It is helpful to have people on your group with origins in
different nations or cultures, specially for firms with either an overseas emphasis, to establish
stronger pass interactions with consumers.
Health and safety policy - To reduce risk, mangers and HR can work together substitute
less dangerous guidelines or substances when both are capable of completing the task, isolate
hazardous chemicals or machines from employees who do not need to cooperate with them,
ensure that good protective equipment and drainage are used in all occupational hazards, and
implement policies that reduce risk by taking required safety procedures. All of these beneficial
improvements may benefit the firm by retaining personnel and thus enhancing performance.
Safety initiatives, according to research, less than pay for self. Understanding discrimination law
and having procedures in place to eliminate discrimination may help HR managers defend their
companies from discrimination claims. HR managers can engage with senior management to
rapidly resolve specific concerns, compensate employees, and penalize managers who
discriminate if discrimination occurs despite company regulations prohibiting it. The Equal
Employment Opportunity Commission (EEOC) is in charge of interpreting and implementing
laws against employment discrimination.

Collective bargaining is the mechanism whereby labor unions and employers reach
agreements today. Manufacturers collaborate with civil servants to settle on rules, salaries, and
benefits through unionization. Union delegates have the authority to speak for the entire union.
Everyone gets more money if the union representative negotiates a raise for its members. The
Wagner Act of 1935 gave labor unions a great deal of authority. The statute made it lawful for
most workers to form labor unions or join them. So it allowed labor unions to negotiate contracts
on behalf of individuals. The act established the Equal Employment Opportunity Commission to
assist labor unions in becoming more successful.
CONCLUSION
From the above discussion it can be concluded that it is complex to perform a business start
up after the impact caused by Covid-19. This report concludes that an entrepreneur must
calculate all the necessary factors which are helpful in business development before starting a
new business. The human resource management policy also plays a major role in organisational
development. This report concludes the opportunities that are available for different business
start-ups at the marketplace along with importance of different government policies for business
growth. This report concludes necessary steps taken by a business to deal with several
consequences that are created by Covid-19 at the marketplace.

REFERENCES
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