Business Report: Legal Structures, Finance, Sectors, and HR

This report analyzes various aspects of business development within the UK context. It begins by examining different legal structures for businesses, outlining their strengths and weaknesses, and then delves into the evaluation of financial sources available for start-ups, particularly focusing on a cloud kitchen business idea. The report further identifies and contrasts three key sectors within the UK economy, commenting on their significance. Finally, it addresses the importance of human resource policies in the modern workplace. The report provides a comprehensive overview of business structures, finance options, and the importance of various sectors in the UK economy. This report, which is a student's assignment, covers legal structures, finance sources, UK economic sectors, and HR policies, to provide a comprehensive understanding of the business environment.

The structure of business
1

INTRODUCTION...........................................................................................................................3
Question One:..................................................................................................................................3
a) Construct a table to show the various legal statuses of businesses. Identify the relative
strengths and weaknesses of these legal statuses...................................................................3
b) Considering your business idea, identify and evaluate the strengths and weaknesses of
THREE sources of finance available to your business start-up.............................................8
Question Two:................................................................................................................................10
Identify three sectors within the UK economy in which a business can operate. What are the
differences between the three sectors? Comment on their value to the UK economy.........10
Question Three:..............................................................................................................................12
Identify at least two HR policies and comment on their importance to the modern workplace
..............................................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
Business structure is defined as the legal structure of an organisation which is basically
organised in given jurisdiction (Berrey, 2021). There are different type of business structures are
just Partnership Corporation, sole proprietorship, Limited Liability Company and more.
Understanding of this structure will allow an individual to perform their business operations with
certain benefits and weaknesses associated to every legal structure. Present report is conducted
on setting up of a new business start-up in the provinces of United Kingdom. Report includes
strengths and weaknesses of different legal status and sources of finance. Furthermore, different
sector with the UK economy along with their value is included in this report in addition with HR
policies which essential in modern workplace.
Question One:
a) Construct a table to show the various legal statuses of businesses. Identify the relative
strengths and weaknesses of these legal statuses
Legal Status Strength of legal
status
Weakness of legal
status
Business Type
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 Legal status for
this business
incorporates
various entities,
including their
liabilities, assets
and resources.
 Similarly, these
sorts of business
start-ups are
mostly sole
ownership
type’s lawful
status in which
only one
individual is the
proprietor of the
business.
 The major
strength of sole
proprietorship
is that it is
having best
legal status and
is easy to set
up. In this new
business start-
up can perform
their business
operations with
less paper work
and easy
handling of
policies and
taxes (Causes,
2021).
 Other strength
of sole
proprietorship
is that in this
business
owners have
benefit of
enjoying
overall control
of business
profits. In
addition to this
 In terms of
weaknesses of
legal status of
sole
proprietorship
it has been
identified that
in this owners
are fully liable
of the losses.
Furthermore it
has been
identified that
self-
employment
tax is
applicable to
sole
proprietorship
and business
continuity
comes to an
end with the
departure or
death of the
owner.
 In addition to
this another
weakness of
this legal
For PLC business
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in this form of
business
decision
making is faster
as in this there
is no other
partner.
status is that
in this
sometime
business
owner may
find difficult
is to handle
capital, as it
keeps on
rising on
continuous
basis.
 The lawful
status is
Stakeholder
liability limited
in this LTD
business
 However, these
sorts of
organizations
have partnership
legitimate status
types in which
many
companies are
doing
partnership to
improve the
 Major strength
associated to
partnership
form of legal
status is that, in
this owners can
enjoy the
benefit of easy
starting of
business as in
this there are
fewer legal
obligations.
Furthermore, it
has been
underlined that
in this form of
 The major
weakness of
this legal
status is that
in this
decision
making can
delay due to
disagreement
that can affect
profit making
opportunity
and can lead
to words
business crisis
that. Dis-
agreement can
For LTD business
5

business
economy and
profit in a
pandemic
circumstance.
legal status
work burden
can be share in
an effective
manner.
 Another
strength
associated to
this legal status
is that it is
based upon
agreement
policy in which
division of loss,
profit and
income is being
divided that
easily dissolve
the issues
related to
settling
disputes.
lead this legal
status to face
number of
adverse
impact upon
business
operations.
 One of the
major
weaknesses of
this legal
status is that
in this sharing
of any
business
losses is being
shared by all
the partners
and they are
responsible
for any loss
irrespective of
the fact that
the losses get
incurred by
other partner.
It also
includes
weakness
related to
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future selling
complication
and lack of
stability.
 Charity is a sort
of lawful status,
not a legal form
of
organisational
structure.
 Furthermore,
the lawful
status of charity
is distinctive in
light of the fact
that it is mainly
limited by
guarantee.
 This legal status
is having
significant in
terms of less
expensive
comparatively
to other
partnership and
government
regulation, as
they are not
entitled to pay
additional
taxes.
 Furthermore it
has been
underlined that
charity is
having strength
in terms of
exemption of
corporation tax
on profit. Along
with this they
are having
number of
 The main
weakness
associated to
this legal
status is that
due to shared
decision
making
process, there
are some time
disagreement
prevails that
affect
objectives of
organisation.
 Another
disadvantage
associated to
this legal
status is
associated to
liabilities,
autonomy
loss,
emotional
issues, in
For registering
Charity business
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donation
sources and
have number of
opportunity
along with
consistency.
stability,
complication
and business
loss.
b) Considering your business idea, identify and evaluate the strengths and weaknesses of THREE
sources of finance available to your business start-up.
It has been evaluated that there are number of spending is being done by government of
United Kingdom in order to provide effective support to businesses in order to overcome
economic crisis due to Covid-19. As being looking forward as an entrepreneur there is
significant opportunities in which new business venture can be started with the help of sources of
finance available for business start-up. It has been identified that due to Covid-19 there is
significant increase in the demand of online delivery service of food. By seeing opportunity in
this, I have decided to start a new business, cloud kitchen. This is basically a commercial facility
in which food gets produced especially for delivery. This is basically a form of virtual restaurant.
For this I am looking for commercial kitchen space in order to launch my own virtual restaurant
concept. Main purpose behind this is to continue to connect supply with demand. This is one of
the most efficient business ideas especially in Covid-19 that will also help in reducing food
waste. This form of business ideas falls under service industry. It has been identified that there
are number of sources of finance available for business start-up which is being define below
along with its strengths and weaknesses:
Funds from Investors and Banks:
Strength
The main strength of taking farms from investors and bank is that it provides easy as well
as quick access to the funds. Along with this from this one can get efficient amount of money at
one time.
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Weaknesses
However if it is talked about weakness it has been identified that funds from investors
and Bank have major weakness in terms of this is paying more interests (Denoncourt, 2021).
Along will this it has been identified that new business may find difficulties to access funds from
bank and investors.
Government grants and subsidies:
Strength
Main benefit associated to taking funds from government grant is that in this business
does not need to be paid back. Along with his it has been identified that in this funds are
available to small business as well as start-ups.
Weaknesses
It has been identified that major weakness of taking fund from government grants is that
in this it is essential for business to meet a certain criteria’s that may sometime create difficulties.
Furthermore, it has been identified that it is also a time consuming process, as in this
organisation or individual is required to make for the application for the grants and required to
complete all the essential paper, work as negligence of this will lead to cancelling of
government grants.
Bank loans:
Strength
Funds from family and friends require low interest. Furthermore, it has been identified
that in this money when not needed to be paid back.
Weaknesses
Major weakness of taking funds from family and friend is that money make it lost if the
business fails (Mohandes and Zhang, 2021). Along with it has been underlined that sometime
argument may occur between family members that can affect funding of business.
Thus according to the above mentioned analysis it has been identified that there are some of
the sources of finance which is available for business start-up. However according to the analysis
it has been identified that government grants and subsidies is playing most important role for
start-up as it has been identified that due to the outbreak of covid-19 United Kingdom is
providing number of grants and subsidies. However in this lot of documentation and paperwork
will required.
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Question Two:
Identify three sectors within the UK economy in which a business can operate. What are the
differences between the three sectors? Comment on their value to the UK economy.
There are different types of sectors in which number of operations is being conducted with
significantly helps in increasing country economic growth. Mentioned below discussion upon
three sectors within United Kingdom economy is being done in which business can operate:
Agriculture industry (Primary sector):
Agriculture industry is one of the most leading industries in United Kingdom which is
playing vital role in offering 61% of the raw material for United Kingdom Agri-food industry.
This industry is not only providing contribution in national economy but is also generating
maximum number of employment opportunities (Contributing to the economy. 2020). It has been
identified that this industry is playing essential role in managing United Kingdom’s land area
environment. This industry is important as it include both livestock as well as crop. This industry
in United Kingdom is having responsibility to produce country fabric and food. In the year 2019
this industry has contributed around 0.61 percent of United Kingdom overall GDP. In addition to
this it has been identified that as per the United Kingdom agriculture report commission, in 2017
by Development Economics it has been identified that this industry significantly contributed in
economy of United Kingdom that include economic performance, environment, social
contribution and farm performance. This industry is significantly generating both employment
and economic output (OBANU, 2021). Importance of this industry in United Kingdom is
significant; The UK produces 7.8 million tons of wheat for bread making every year, with the
normal family purchasing 43 portions each year. Farming assumes a significant part in dealing
with the climate of more than 70% of the UK's property region. 5.5 million tons of potatoes are
delivered in the UK every year, enough to make 27.5 billion parcels of crisps. With each £1 put
resources into cultivating, £7.40 is created back to the UK economy. British farming gives 64%
of the food eaten in the UK with 66% of all homestead organizations in England additionally
running different undertakings, for example, B&Bs, farm shops and wedding venues This
created a pay of £680 million of every 2017/18 to the UK economy. This indicates importance of
the value of this industry for UK economy growth.
Manufacturing and production (Secondary sector):
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Manufacturing and production industry assumes a significant part in the UK, especially
with regards to the nation's economy. It's an immense, high-esteem space of work. According to,
The True Impact of UK Manufacturing this industry contributes 9% of the UK's GDP and gives
2.6 million job opportunities. As per the report there is indirect impact of manufacturing and
production industry which incorporates those organizations that are inside the inventory network,
that offers 15% of United Kingdom economy and more than 5 million jobs. As per the numbers
it is clear that manufacturing and production industry is playing important role of UK economy.
Furthermore, the overall population are beginning to understand this as well. In addition to this,
it has been identified that manufacturing and production industry helped UK to secure its
position in the worldwide economy post-Brexit. This industry is playing major role in generating
large scale employment opportunities (The importance of the manufacturing sector to the UK's
economy. 2018). With the development of Industry 4.0 advances, including robotization, 3D
printing and mechanical technology, the scope of undeniable level specialized abilities needed to
keep up the business' development is wide. A significant development in this industry is
generating attention of next-generation workers. Thus, it has been evaluated that manufacturing
and production industry is valuable for UK economic growth at great extent.
Service industry (Tertiary sector):
This industry is also one of the most important industries in United Kingdom which is
significantly contributed in country's economic growth and development. Service industry
includes financial sector, retail sector, business administration, the public sector, leisure and
cultural activities. It has been identified that this industry is accounted for 80% of United
Kingdom total economic output. Furthermore it has been identified that employment in January-
March 2021 states that service industry is offering 82% of employment opportunity that was
increased by 3.4 % between March- April 2021 (Service industries: Key Economic
Indicators .2021). In addition to this it has been identified that this industry is playing significant
role in providing number of employment opportunity to United Kingdom. It has been underlined
that this sector is not only increasing opportunities for individuals but it also helps country to
achieve its government inflation target. Due to the significant rise in the growth of this industry
increase confidence of government that despite of the negative impact of covid-19 this industry
is having significant capability to increase growth rate of United Kingdom (Tirumalsety and
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Gurtoo, 2021). Thus it has been identified that service industry is one of the most important
industry of United Kingdom which is valuable for country growth and development.
It has been identified that a primary difference between the three sectors is that, in this
business operate different type of roles and responsibilities and falls under three different sectors
which is primary, secondary and tertiary.
Question Three:
Identify at least two HR policies and comment on their importance to the modern workplace
It is essential for companies or organisation to adopt some certain form of policies as well as
process within their business. These policies include health and safety policy, dismissal and
disciplinary policy, equality and diversity policies and more. Implementation of these policies
within business help organisation to effectively manage difficult things and further allow them to
understand needs of today's business world. Policies like equality and diversity and health and
safety plays essential role through which individual can perform their roles and responsibilities
in a well define and effective manner. With the help of efficient health and safety standards
organisation can effectively maximise satisfaction level of employees. This will also aid
organisation to maintain strong relationship with workforce. Thus, it has been stated that
effective policies is playing significant role that helps in enhancing productivity as well as
performance with an organisational workplace structure. It is essential for HR manager with any
company to implement certain policies that are being defined below:
Health and Safety policies
It is essential for every organisation in all industrial sectors to implement series of
programs, policies and procedures related to efficient health and safety measures. An
organisation is required to be committed towards occupational health and safety of employees. In
this HR manager is required to implement certain approach as well as arrangements in order to
ensure that company is maintaining statutory compliance with the relevant legislation (Patel and
Feng, 2021). HR manager is required to have efficient health and safety policies with a written
statement that further clearly outlined the manner in which health and safety is being managed
within workplace structure. With the help of committed health and safety practices of employees
will not only help workers to perform their operations in a safe and secure environment but also
allow company to enhance employee satisfaction performance and overall productivity on
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simultaneous basis. In addition to this, it has been identified that this policy is important for
business organisations as it helps in increasing morale and motivation of employees while
reducing risks.
Equality and diversity policies
Equality and Diversity policies include rights in which employees are being subjected to that
include wage relation act, human right act, disability discrimination act, sex discrimination act
and more. It is essential for an organisation to provide equal treatment to all employees
irrespective of their religion sex, race, sexual orientation, disability and more. Employers are
having significant responsibility to make sure that there is no discriminatory policies prevail in
organisational workplace structure. In the HR manager must required to have policies related to
equality and diversity and ensure that the same is being complied with respect and dignity. HR
manager within an organisation is required to have equality and diversity policy in a written
agreement in order to create an inclusive as well as safe atmosphere for employees. Equality and
Diversity policies provide protection to each and every employee. It allows facilitate every
individual to have same opportunity and get treated on same basis no matter of their race, gender
age and more. It has been identified that with the adoption of equality and Diversity policy HR
manager can ensure number of benefits for both workforce and organisation such as greater
product innovation, resolving labour shortage, enhancement of market opportunity, better
corporate image and more (Sanfelici, 2021). This policy will effectively aid organisation to
maximise job satisfaction among employees, as by promoting positive organisational culture
with high value allow organisation to promote recruitment of employees. This will automatically
maximize organisational productivity and market growth.
According to the above mentioned analysis it has been identified that the above mentioned
at all policies is playing significant role in modern workplace, as with the help of implementing
efficient and proper health and safety procedures within organisational workplace structure allow
organisation to avoid workplace damage and injuries to employees. In today's business world if
organisation is concerned about safety of their employees then it will increase comfortable and
confident level of workforce. This facilitates employees to be more focused towards their roles
and responsibility. Health and safety policy is important for modern workplace as it helps in
reducing cost risk, lower employee turnover and absence rate, threat of legal action towards
organisation and helps in improving reputation of organisation among business. While on the
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other hand with the help of equality and organisation can encourage equality and can make
employees motivated and happy by providing them protection against discrimination harassment
and bullying. This enhances company goodwill and brand image in market segment.
CONCLUSION
According to the above mentioned report it has been identified that there are different type
of business sectors that are having their own strength and weaknesses. In terms of starting a new
business start-up it is essential to emphasize upon them and have in-depth knowledge and
understanding of advantages and disadvantages of each and every legal status in order to assure
success. There are different types of financial sources through which financial assistance can be
taken. This report states that there are different sectors to the UK economy which are having
significant value in economic growth of country. Furthermore, this report also identifies HR
policies such as health and safety and equality and diversity which is playing important role in
modern workplace. Implementation of this will lead organisation to assure long-term growth
sustainability and higher profitability.
REFERENCES
Books and Journals
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Berrey, E., 2021. The enigma of diversity. University of Chicago Press.
Causes, R., 2021. The Linkages Between Business and Human Rights and Their
Underlying. Human Rights Quarterly, 43, pp.117-137.
Denoncourt, J., 2021. Company classification taxonomy and corporate intellectual property
rights owners. In The Future of Intellectual Property. Edward Elgar Publishing.
Jin, X., Shen, Y., Yu, B. and Qian, M., 2021. Flow‐driven risk shifting of high‐performing
funds. Accounting & Finance.
Mohandes, S.R. and Zhang, X., 2021. Developing a Holistic Occupational Health and Safety risk
assessment model: An application to a case of sustainable construction project. Journal of
Cleaner Production, 291, p.125934.
OBANU, C.J., 2021. FORMATION OF COMPANIES: A COMPARATIVE
ANALYSIS. INTERNATIONAL JOURNAL OF COMPARATIVE LAW AND LEGAL
PHILOSOPHY (IJOCLLEP), 3(1).
Patel, P.C. and Feng, C., 2021. LGBT Workplace Equality Policy and Customer Satisfaction:
The Roles of Marketing Capability and Demand Instability. Journal of Public Policy &
Marketing, 40(1), pp.7-26.
Sanfelici, M., 2021. Diversity and equality in social work: a qualitative study in Italy. European
Journal of Social Work, 24(2), pp.267-277.
Tirumalsety, R. and Gurtoo, A., 2021. Financial sources, capital structure and performance of
social enterprises: empirical evidence from India. Journal of Sustainable Finance &
Investment, 11(1), pp.27-46.
Online
Contributing to the economy. 2020. [Online ]. Available through<
https://www.countrysideonline.co.uk/food-and-farming/contributing-to-the-economy/>
The importance of the manufacturing sector to the UK's economy. 2018. [Online ]. Available
through< https://www.corrotherm.co.uk/blog/the-importance-of-the-manufacturing-
sector-to-the-uk-economy>
Service industries: Key Economic Indicators .2021. [Online ]. Available through<
https://commonslibrary.parliament.uk/research-briefings/sn02786/>
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