Business Structure Analysis: BUS0005NFBNM Report, Semester 1

This report provides a comprehensive analysis of business structures within the UK economy. It begins with an introduction to business and its role in the economy, followed by an examination of various legal statuses of businesses, including their strengths and weaknesses, with specific attention to a startup company, "Morningstar Mask." The report then delves into the strengths and weaknesses of three key sources of finance available to startups: crowdfunding, angel investors, and venture capital firms. Following this, the report explores three distinct sectors within the UK economy, highlighting their differences and value. Finally, the report concludes with a discussion of two crucial HR policies and their importance in a modern workplace. The content demonstrates an understanding of how different business structures operate within the legal and economic framework of the UK, while also examining the financial and human resource aspects essential for business success.

The Structure of Business

Contents
Introduction................................................................................................................................3
Main Body..................................................................................................................................3
Question 1:.............................................................................................................................3
a) Various legal status of businesses and their relative strengths and weaknesses................3
b) Strengths and weaknesses of three sources of finance available for the start-up business5
Question 2: Three sectors within UK economy in which business can operate with their
difference and value...............................................................................................................8
Question 3: Two HR policies and their importance to modern workplace............................9
Conclusion................................................................................................................................10
References................................................................................................................................12

Introduction
Business is seen as a separate, efficient planned legal entity that may contribute to the
construction of a strong infrastructure that can offer new goods and services, which can help
attract customers. In the United Kingdom, there are many types of companies, such micro,
SME and large companies with distinct characteristics and scale. This project discusses
numerous kinds of companies and diverse ownership structures such as single traders,
cooperative companies, partnerships, business enterprises and more. This study examines
several forms of structure and how the structure of the company might impact business
productivity (Badran and Badran, 2020). For this report, “Morningstar Mask” which is a
start-up company in UK is being taken into consideration. The respective firm will offer
excellent quality of masks with 5 layer protection to its valuable customers in its given region
of operations. In respect to current pandemic times and as per new guidelines published by
government of the region which grants a start-up loan of $500- $25,000. This will be the right
time for any start-up businesses to launch their holdings in desired market areas of working
(Baporikar, 2020).
Main Body
Question 1:
a) Various legal status of businesses and their relative strengths and weaknesses
There are various sorts of businesses operating in the UK which may help increase
people's living standards and provide rural and urban people plenty of jobs and target the
local community to live a good life. In the UK economy the involvement of different firms is
expanded and businesses may affect economic growth in the country well. The following are
described several sorts of companies considered by the UK market.
Basis Public Private Voluntary
Definition Usually, the Public
Sector comprises of
government-owned
and managed
companies serving
its citizens. Public
sector organisations,
A private
organisation is any
partner, company,
person or agency not
governed by a public
institution. It
encompasses all
A voluntary
organisation or
union is a group of
persons who agree to
set up an agency for
a voluntary purpose.
Common examples

like the voluntary
sector, are not
aiming to profit.
firms that are not
owned or operated
for profit by the
government.
are trade
associations, agents,
literate firms, trade
groups and
organisations for the
environment.
Purpose Public companies
are publicly traded
companies. Investors
can become
shareholders of a
public society by the
purchase of shares of
the company. The
company is
considered public as
any interested
investor can acquire
the corporation's
shareholdings in
return for
shareholdings.
Instead of earning,
the purpose of
volunteer groups is
to achieve their
objectives. This
usually means that
people prioritise
things differently
than a business. In
general, when
customers can
acquire the same
thing elsewhere at
less costs, they will
not pay more. In
particular, private
companies cut prices
of products and
services while
fighting for the
money of their
client.
Instead of earning,
the purpose of
volunteer groups is
to achieve their
objectives. This
usually means that
people prioritise
things differently
than a business.
Strengths In particular, if the
firm is listed on the
recognised market,
the most evident
advantage is its
100% of external
direct investment is
authorised in a
private limited
company which
Charities for social
benefit are
commonly
acknowledged as
existent. This can

capacity to raise
share capital. Since
its shares may be
sold to the public
and anyone can
invest his money,
the capital raised is
generally
significantly bigger
than a private
limited business.
means that any
foreign business or
foreign individual
can invest directly in
a private limited
company.
contribute to
collecting funds.
Weaknesses It is more difficult to
manage who is the
firm's shareholder
and who is
ultimately
accountable to the
board of a public
limited company.
Thus, original
owners or managers
may lose control of
the company's
management,
confront conflicts or
spend much more
time monitoring
shareholder
anticipations.
The number of
shareholders in a
private limited
company must never
exceed 50 which
serves as the limited
scope of finance for
the given legal
entity.
Voluntary may be
subject to work
limitations that
might be
implemented or
supported. There are
prohibitions on some
political activity and
forms of commerce.
Charitable
organisations,
particularly those
related to annual
accounts and reports,
must comply with
regulatory
obligations.
b) Strengths and weaknesses of three sources of finance available for the start-up business
Crowd funding: Crowd funding is one technique of receiving startup investment.
Crowd funding is one of the quickest and most secure means of getting money. Because the

audience won't ask anybody to return it. People want only the goods or service individuals
promised (Dammak and et. al., 2020).
Strengths
 It might be a quick approach without upfront charges to get financing.
 Raising an online platform for a project or a business may be an useful method of
marketing and publicity.
 Manager may frequently receive professional comments and advice on how to
enhance it via sharing company's idea.
Weaknesses
 Not all projects applying to crowd funding platforms will certainly be simpler to go
through compared to more traditional financing approaches.
 Manager need to perform a great deal of work to create interest on their selected
platform before the project is launched considerable resources may be necessary.
 Usually all the financing managers have promised will be returned to
respective investors if company do not achieve their financing objective and do not
get anything.
Angel Investors: In the initial financing phase, the angel investors are private
investors. This is why the danger of investing in a new firm is more than usually they are
known as 'angels.' If one have the appropriate contacts, it is rather straightforward to seek an
angel investor for respective firm. They may be found via their own network, searched for
social networking sites, then sent given company pitch, or participate in start-up events (Fu
and et. al., 2020).
Strengths
 The biggest benefit of an angel investor's investment is that the risk of enterprise
loans is smaller than that of smaller companies.
 Relative to loans, an angel investor does not have to repay the funds, because they are
equity paid for financing.
 Angel investors are usually seasoned and long-term investors who realise they cannot
see a long-term return on their investments. In addition to investment opportunities,
many angel investors are also seeking for personal chances.

Weaknesses
 While angel investors allow corporate owners to set up their companies, various
drawbacks such as equity loss occur in getting money. In exchange for capital, many
business entrepreneurs give up 10% to 50% of their start-up.
 Angel investors can also expect significant returns on investment in the first five to
seven years, perhaps 10 times their original investment. This can generate additional
strain for businesses and its staff.
 The other inconvenience is control loss. Most angel investors take a hands-on
approach to the firm after investing their money in a company.
VC firms: A Capital Corporation is a limited partnership or limited liability
corporation that invests in start-ups with strong investment return potential for its investor
pool. Most VC companies are aggressively searching for start-ups who want money in return.
However, you may locate them directly on their websites or through start-up events. A start-
up pitching session is the greatest approach to identify VC companies (Tang and Zhang,
2020).
Strengths
 The risk capitalist investors are under no obligation to pay back if the start-up fails. So
for start-ups, venture financing is important. The startup is not left to pay off, as with
bank financing.
 Regulatory authorities control VCs closely. For example, the UK Securities and
Exchange Commission regulates the VC's. For example. They are subject to
restrictions comparable to any other type of investing in private securities.
Weaknesses
 In 3 to 5 years a VC might choose to redeem the investment. Their concentration is
mostly on gains in capital. Venture finance may not be appropriate for a contractor
whose business strategy takes a longer period to offer liquidity.
 The financing of venture capital carries a great deal of risk. VC normally takes a lot of
time to determine whether or not to invest. Venture financing may be an excellent
source of capital for start-ups. The long wait to get the cash, however, is a major
disadvantage.

Question 2: Three sectors within UK economy in which business can operate with their
difference and value
The UK economy has a well-developed social market and market economy. The
economy in the world is the fifth most important national economy in terms of nominal GDP,
the ninth biggest in terms of acquisition power parity, and twenty the tallest in terms of per
capita GDP, which accounts for 3.3% of world GDP. Britain, which encompasses England,
Scotland, Wales and Northern Ireland, is one of the most globalised economies in history.
Primary sectors: The primary sector is often called the extraction sector as raw
materials are required. Those resources can be renewable, including fish, wool and wind
power. Or the use of resources that are non-renewable, like oil extraction, coal mining. More
than 1 million workers in the UK coal industry were employed in the 1920s. This was one of
the major economic components. In this main sector business, nevertheless, better technology
and the development of alternate sources of energy have seen a substantial decrease (Van der
Westhuizen and Mkhonta, 2020).
Secondary sectors: The manufacturing sector uses and mixes basic resources to
generate an added value final product. Raw sheep wool, for example, may be processed into
higher grade wool. Then this yarn may be knitted and stitched to make a sweater to carry.
The production sector originally was based on the cottage industries which were labor-
intensive. However, the expansion of larger factories was allowed because to improved
technologies such as spinning engines. They were able to cut production costs and boost
labour productivity through economies of scale. The increased productivity of labour also
allowed higher pay and larger revenue to be used for products and services.
Tertiary sectors: In the service industry, the intangible component of providing
customers and corporate services is addressed. It includes the retail of produced products. It
also offers insurance and financial services. Due to better worker productivity and increasing
discretionary incomes, the service industry grew in the 20th century. More available revenues
make it possible to spend more on 'luxury' services, for example tourism and restaurants
(Wang and et. al., 2020).
Primary Secondary Tertiary
 Farming and
associated service
sectors are
 The secondary sector
is called the
manufacturing
 The service sector is
referred to as the
third sector.

considered as the
primary sector.
 The primary sector is
supplied with raw
materials for goods
and services.
 The primary sector is
mainly unstructured
using conventional
practises.
 Forestry, agricultural
and mining
operations are
included in this
sector.
sector.
 By constructing
more of it, secondary
sector transforms a
good into another.
 The secondary
industry employs and
is organised by more
dependable
manufacturing
processes.
 It covers production
units, major
companies, small
units and
multinationals.
 The primary and
secondary sector
offers services in this
area.
 This industry is well
organised and
employs
contemporary
methods of logistics
to perform its duties.
 This industry relates
to the commerce in
insurance, banking
and communications.
Question 3: Two HR policies and their importance to modern workplace
The workplaces today are evolving and rules on the workplace must reflect the
changes. The updating of personnel rules and manuals to address the newest developments
may help establish clear boundaries, minimise confusion at work and safeguard your
organisation eventually. Personal resources (HR) policies are intended to offer a framework
for an organisation that can make consistent judgments and promote fairness in the manner in
which people are treated. The establishment of robust HR policies may assist a company to
demonstrate internally and publicly that it meets the diversity, ethical and training needs at
the workplace of today and fulfils its regulatory and corporate management responsibilities
(Wu and et. al., 2020).
Anti-Harassment and non-discrimination policy: These regulations prevent
harassment and discrimination on the job. These are always subject to federal, state and
municipal rules and it is essential that applicable legislation is reviewed and that all the
proper protection is taken into consideration when this policy is laid down. The policies
against harassment and anti-discrimination make it clear that harassment and discrimination
are not permitted and that behavioural norms and expectations are defined. A policies of anti-

harassment or anti-discrimination should identify those sorts of behaviours that are
discriminatory or harassing. Roles and duties should also be laid forth in the policy. These
human rights policies should be connected to current organisational policies and should be
integrated into the day-to-day operation of the organisation (Xie and et. al., 2020).
Importance in modern workplace
 The value of this work environment is devoted to respecting and dignifying everyone.
Each person has the right to work in a professional environment that fosters equal
opportunities for work and prevents illegal discrimination, including harassment.
 This policy was established to make sure that its staff are free from illegal harassment,
discrimination and retribution in an environment. Will make every reasonable effort
to ensure that everyone affected is aware of the policies and that any complaint
breaching such policies is properly investigated and addressed.
Social media policy: A policy on social media helps defend the reputation of given
organisation, online and beyond. Managers nevertheless should construct this policy to resist
examination by once Regional Employment Relations Board, despite the somewhat
contemporary character. The firm's reputation is undoubtedly one of the most relevant facts
for the success of the organisation. Well, company employees have an insight into what to
put about respective firm on the profiles of their social media accounts with a suitable social
media policy (Zhou, 2020).
Importance in modern workplace
 Employee guidelines and regulations: It determines the behaviour of employees on
various social media platforms. Brand standards, the social media label, penalties,
secrecy, personal usage of social networks, etc. are many topics it should include.
 Roles and responsibilities: This section decides who manages the various activities of
social media governance. The varied activities allocated to different members include
message approval and crisis response, employee training, social engagement, and
social media monitoring.
Conclusion
For the study it can be concluded that the most important role for the economy in UK
is played by different kinds of firms such as the micro, small, medium and large. In this
research, there are also various kinds of ownership structures, such single ownership, co-

operation, a public limited liability company and much more with distinct characteristics and
processes. This research also evaluated several types of organisational structure and is
considered more suited for large companies.

References
Books and Journals
Badran, A. and Badran, S., 2020. Can Universities in the Arab Region Become the Engines
for Knowledge and Innovation?. In Higher Education in the Arab World (pp. 73-93).
Springer, Cham.
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Journal of Entrepreneurship and Governance in Cognitive Cities (IJEGCC), 1(2), pp.24-38.
Dammak, H., Dkhil, A., Cherifi, A. and Gardoni, M., 2020. Enterprise content management
systems: a graphical approach to improve the creativity during ideation sessions—case study
of an innovation competition “24 h of innovation”. International Journal on Interactive
Design and Manufacturing (IJIDeM), 14(3), pp.939-953.
Fu, Y., Liu, R., Yang, J., Jiao, H. and Jin, Y., 2020. “Lean in”: the moderating effect of
female ownership on the relationship between human capital and organizational
innovation. Journal of Intellectual Capital.
Tang, C. and Zhang, G., 2020. The Moderating Effects of Firm's and Industrial Co-Inventive
Networks on the Relationship Between R and D Employees’ Mobility and Firm
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Wu, W., Liu, Y., Wu, C.H. and Tsai, S.B., 2020. An empirical study on government direct
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Xie, H., Zou, J. and Mu, L., 2020. Multiple networks and enterprise innovation based on the
perspective of middle managers. Knowledge Management Research & Practice, pp.1-9.
Zhou, Y., 2020. Brand Design of Coastal Eco-tourism Products Based on Cultural
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