At Your Need: Business Structure, Finance and UK Economy Report

This report, created for the hypothetical retail venture "At Your Need," delves into various aspects of business operations. It begins by defining business structure and its importance, then provides a detailed table outlining different legal statuses like sole proprietorships, partnerships, and limited companies, along with their respective strengths and weaknesses. The report then explores three key sources of finance available to start-ups, including personal investment, bank loans, and crowd-sourced funding, evaluating their advantages and disadvantages. Furthermore, it identifies and differentiates the three primary sectors of the UK economy – primary, secondary, and tertiary – in which the business could operate. Finally, the report touches upon the importance of HR policies in the modern workplace. The report aims to provide a comprehensive understanding of the key elements needed for a successful business venture, offering valuable insights into legal structures, financial strategies, and the economic landscape.

The structure of
business
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Construct a table show the various legal statuses of business that business will adopt. Identify
strength and weakness of these legal statuses........................................................................3
Considering the business idea, identify and evaluate the strength and weakness of three
sources of finance available to business start-up....................................................................6
Identify the three sectors of the UK economy in which the business can operate. What are the
differences between the three sectors.....................................................................................8
Identify at least two HR policies and comment on their importance to modern workplace 10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
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3

INTRODUCTION
Business structure can be defined as the formation of business in legal manner so that
jurisdiction can be provided to the organisation. The organisation structure is made up of various
key determinants and in this manner various activities within business can be performed such as
gaining of capital, performing business obligations and many more. The owners are required to
decide goals and objectives of the business before deciding business structure as this will lead
owners to form their venture in easy manner (Chauhan, Dey and Jha, 2016). There are four major
types of business structure available such as sole proprietorships, partnership, LLP and at last
LLC. This report is providing different concepts related with business structure so that to provide
various opportunities to the business. The report is made in the background of an entrepreneur
who is planning to initiate their own venture within retail industry named At Your Need. For
gaining precise decision they are willing to gain knowledge regarding various business structures
in order to decide regarding ownership of their venture. So this report is going to assist
entrepreneur for taking understanding regarding various legal structure along with their strengths
and weaknesses.
MAIN BODY
Construct a table show the various legal statuses of business that business will adopt. Identify
strength and weakness of these legal statuses
The working within an organisation is dependent upon its legal structure and in this manner only
business scale and its tax regime is decided. With the help of business structure tax calculation is
executed and can be paid similarly. For example some businesses are formed in order to serve
the society so the major objective of these ventures is to provide social benefits so that overall
development can be seen within society (AJAGBE and et. al., 2016). The following table is
providing legal structure of various types of businesses so this could provide knowledge in
relation to difference between various ventures. On the other hand under this table strengths and
weaknesses regarding each structure is also elaborated.
Legal statuses forms About statuses Strength Weakness
Sole proprietorship The meaning of word
sole is single that
means under this type
When sole
proprietorship is
defined as the
Besides various
strengths this business
structure is also
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of business structure
all decision and
functions are executed
by a single person that
is the owner of
venture. The concept
of sole proprietorship
is very old but at the
same time this is used
in vital manner. Sole
proprietorship is
associated with very
minimum number of
business operations in
which only single
person is responsible
to handle the entire
functions and working
(Paulus-Rohmer,
Schatton and
Bauernhansl, 2016).
This business
structure is flexible
and feasible in nature
in most recent manner
this structure is
adopted by
entrepreneurs
(Batocchio, Ghezzi
and Rangone, 2016).
On the contrary
business structure in
which freedom to
work is considered as
the greatest strength
in which owners may
operate their business
by making their own
rules and regulations.
On the other hand sole
proprietorship is easy
to set up so that this is
considered as one of
the easy form of
business structure.
These business
structures don’t have
any complications as
functions are executed
single headedly. In
recent time start-ups
are using this business
structure as they are
not having much
resources and space to
hire employees.
having disadvantage
also. These businesses
are not able to get
multi-dimensional
financing due to
businesses are
required to get
dependent on working
capital. The cash
availability within the
organisation is also
limited which means
that limited functions
can be executed by
the business. On the
other hand these
businesses are having
limited number of
resources due to
which overall
management become
harder.
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proprietorship is
unsuccessful at some
point of time as due to
minimum number of
operation and people
difficulties can be
faced by the venture.
The partnership Partnership is defined
as the agreement of
business in which two
or more people are
involved in order to
carry out business
operations. All the
partners are jointly
responsible for
managing business
operations including
losses and profits.
Partnership is having
numerous numbers of
partners such as active
partner and sleeping
partner. Active
partner is taking
active participation in
various business
activities whereas
sleeping partners are
not activity taking
their participation in
The prominent
strength of partnership
is that business
structures are
executed in
collaborative manner
so that various
challenges can be
avoided. Besides this
as partnership is
accumulation of more
than one people so
this leads to
generation of
innovative ideas
which is helpful in
gaining business
growth opportunities.
When more than one
people are involved in
the business then
chances of conflicts
get increased. On the
other hand due to
involvement of chain
of people decision
making process gets
harder and
complicated and many
lead into developing
disagreements.
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business activities.
Limited liability
company or
partnership
The government is
allowing an additional
form of business
structure named as
LLC and LLP. Under
this type of business
structure liability of
members are limited
up to the amount they
have taken liability.
On the other hand
amount of investment
is also decided in
prior manner within
deed and when
needed these
agreements can be
renewed
This business
structure is associated
with having higher
access to raise needed
capital but at the same
time liability is
limited which is
beneficial for
members involved.
This business
structure is providing
differentiated form of
ownership in which
different parties are
involved.
The prominent
weakness of these
business structure is
that they are complex
in nature as various
laws and legislations
are involved. On the
other hand huge taxes
are required to be paid
by these businesses
due to which overall
profitability gets
decreased.
Considering the business idea, identify and evaluate the strength and weakness of three sources
of finance available to business start-up
There are differentiated sources of financing that can be used by businesses in order to
starting their own venture and to get succession opportunities as well.
Personal investment: For initiating own business personal investment is considered as one
of the easiest method in which needed amount of funds are accumulated using own saving and
money management. Under this method of financing in the form of cash or collateral assets
investment is made (Qu and et. al., 2019). This is associated with providing long term
commitments in which owners get significant edge in the market along with meeting funds needs
of their venture. Besides this personal investment are risky as well due to the reason of non-
disclosure of source of investment. Following are the advantages and disadvantages of personal
investment:
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Advantages Disadvantages
Using own money in order to provide
investment in the business may minimise
certain complexities and leads to save interest
cost. There is no restrictions of paying back the
loan amount due to which overall profitability
can be enhanced. This mode of financing is
considered as one of the fastest mode in which
funds can be gathered in secured manner.
By using own money in business investment
purpose financial risk can be attracted and this
may lead into minimised personal saving of
owner. After using this source as financing
owners may face difficulties in managing their
personal expenditure.
Funds from investors and bank: The venture capital is related with gaining money for
the business in order to support its long term survival. With the help of investors’ money is
obtained by them in small amount but at the same time there are numerous number of investors.
This source of financing could be helpful in opening of new business so that financial assistance
can be given to them. In this manner competencies are given to the business so that to acquire
their aims and objectives in decided time frame (Paswan, Hirunyawipada and Iyer, 2017). Huge
efforts are needed when a business is started and in this manner various growth and expansion
opportunities are inhaled by the organisation. With the help of venture capital funds can be
accumulated in needed manner. On the other hand bank loan is considered as the traditional
method of financing in which funding can be collected by the business using a prescribed
procedure. This is advantageous for organisation to get bank loan as this is one of the most
trusted method of financing and this is used by mass people as well. Interest is the dimension on
which decision of bank loan is dependent as different banks are offering bank loan in different
rates of interest. In this way advantage and disadvantage of this method is as under:
Advantages Disadvantages
Bank loan is considered as traditional source of
financing in which assistance in form of funds
are given by the bank to the organisation in
order to meet their daily business requirements.
On the other hand this is a systematic approach
which may lead the business to minimise fund
shortage practices.
The process of getting loans is very tough as
financial position is being tested and along
with this some assets are also required to be
mortgaged in order to obtain bank loan. This
could be risky sometimes when venture get
failed.
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Crowd-sourced funding: This is one of the new and trending methods which are used by
small businesses in order to get funds for their business. In this small contribution is given by
each and every investors and they are promised to get high returns. The method of crowd
funding is related with gaining idea related to venture so that market inclination can also be
analysed and in the same manner investors may get idea that where they are investing. This is the
method used for persuading investors so that business reliability can be enhanced.
Advantage Disadvantages
This is considered as one of the easiest and
appropriate method of obtaining financing in
which own contribution is given by investors
in terms of giving sum of money to businesses
which are at their growing stage (Spieth,
Schneckenberg and Matzler, 2016). In the
current time this method is used by investors
so that they can get quick access over funds.
The investors those are having urged to earn
and get higher returns will be investing in this
type of approaches. In initial time this is not
possible to get desired results so risk of failure
is always existed.
Identify the three sectors of the UK economy in which the business can operate. What are the
differences between the three sectors
There are three major sectors existed within the economy of UK and the same can be used
by start-ups for initiating their business and to get access over market. These sectors are defined
as under:
Primary sector: This sector is giving advantages to every sector as this sector is associated
with providing raw material to businesses so that they can carry out business operations. In UK
this sector is covering small businesses as primary sector is not very much existed within UK.
There are differentiated shifts which are existed within primary sector and these are rendering
higher technology in the market so that this is regarded as the major reason for which this sector
is having higher market prominence. This sector is having accountability to serve only a few
percentage of population so that in terms of GDP these businesses are least responsible for any
movement within national GDP (Bolton and Hannon, 2016). This sector is also regarded as
sector of extraction in which they are using various renewable resources in order to provide
employment to various people. When primary resources are declined then impact is seen over
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primary sector in negative manner. For At Your Need this sector could be beneficial in terms of
gaining required improvements and to gain market position as well.
Secondary sector: This is the sector which is related with distribution of finished
products such as home construction, electricity equipment’s and many more within market. The
secondary sector of manufacturing is associated with playing immense role within retail industry
as these are providing higher value to the customers and supplying finished goods to them.
Besides this under this sector several inventions are also inhaled which is helpful in providing
access to customers and business expansion in speedy manner. This sector is providing
economies to scale by which production cost can be minimised and at the same time labour
effectiveness can be increased.
Tertiary sector: The tertiary sector could be most linked and feasible for At Your Need
as this sector is linked with service industry and at the same time business expansion is high in
this context. This sector is also linked with retail aspect of manufacturing products so that to
cater to large amount of population. Insurance, banking and other service provider are associated
with tertiary sector and these businesses are immensely managing their services and product
portfolio therein (Skobkin and et. al., 2017). In twentieth century this sector has attained higher
prominence as disposable income of people has increased and at the same time people are prone
to expand over luxurious product and services.
The changes in the importance of different sectors;
The primary sector is based on people and workforce that are involved within this sector
so this can be said that primary sector is linked with agriculture and food industry and its growth.
With the help of using innovative technology and aspects chances of improvements are given to
the economy and the same improvement can be seen in primary sector as well. Primary sector is
working for providing growth opportunities to labour so that to render higher standard to their
family (Brannon and Wiklund, 2016). For economy primary sector is considered as major part in
which prominent decisions are being taken for overall development. This sector is also linked
with government in which several laws and legislations are required to be followed by them.
Besides this secondary sector is associated with supplying of manufactured goods to ultimate
consumer and in this manner benefits to economy can be given. At last tertiary sector is related
with service industry and in current time this sector is facing its boom so that this can be called
as one of the most influential sector.
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Identify at least two HR policies and comment on their importance to modern workplace
Within a business there are various HR policies which are required to be maintained so that
to provide benefits to employees in higher manner.
Equality and diversity policy: This policy is associated with using such practices in the
business by which opportunities for diversification and equitability can be given to each and
every employee irrespective of their gender, age, religion, disabilities or any other dimensions.
Using these policies within workplace higher contribution of employees can be received and they
feel valued as well which resultantly leads to enhance their retention. These practices are
safeguarding interests of employees and lead to avoid practices which are based on any
prejudice. The policy of equality and diversity is helpful in providing equal opportunities of
working and involvement of all employees and this could lead an organisation to touch new
business and market heights. With the help of this policy trust within employees can be enhanced
and this will lead into gaining higher contribution of employees and business may get higher
market position and image as well. This policy is regarded as one of the prominent and
advantageous practice which should be followed within workplace in order to align employee
efforts with overall business objectives. These practices are categorised as the approaches in
which discrimination is avoided and at the same time every working employee get equitable
opportunity to enhance their career and get growth as well. Using this policy At Your Need may
render higher level of satisfaction to their employees and may get high return in terms of
involvement from employees. This way the company may get succession opportunities in market
and accomplish their business objectives accurately.
Safety and health policy: The government has made it compulsory to upkeep measures of
employee safety and health within premises in order to provide atmosphere of safety and
satisfaction to them. Using this policy the organisation may get benefits in relation to employee
engagement and employee satisfaction. This policy is helpful in providing such preventive
measures within organisation by which development to economy can be rendered and along with
this safety measures within premises can be seen. When appropriate health and safety measures
are used within organisation then overall business effectiveness can be enhanced. The major
responsibility of managing the culture is associated with employer and in this manner business
environment can be enhanced (Yaqin, Sarno and Fauzan, 2017). The plan of health and safety is
linked with executing such preventive methods within the organisation by which protection can
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be given to employees in respect of facing any injury or illness within workplace. These way
major risks can be prevented by the organisation and employee satisfaction can also be obtained
(Powell and Lim, 2017). These aspects are providing successful health and safety measures
within the organisation and the same are elaborated as under:
 The management is requisite to arrange various programs.
 Employees should be encompassed with these programs
 Various systems should be included by which hazardous practices can be avoided.
 Significant training to employees should in respect of up keeping of health and safety
measures.
 Practices for minimising communication gap should be addressed.
 Various policies in relation to providing workplace safety and health policies are avoided.
 These practices are helpful in gaining participation of employees.
 Using these practices situation of mis-management can be avoided.
CONCLUSION
From the above report this can be concluded that there are different structures available in
which business is formed and on the basis of business objectives these structures are being
selected. The formation of an organisation is totally dependent on their objective of coming into
the platform of initiating venture and along with this type of business function that they are going
to execute. Besides this market demand is also regarded as the deciding element within business
structure so that acquiring all this factor management of the business take decision regarding to
the business structure. With the help of appropriate organisational structure several dimensions
can be covered such as market growth, sustainability and market prominence. In order to manage
the business in most suitable manner funds are playing prominent role so that for gaining success
this is significant to choose relatable source of funds.
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REFERENCES
Book and journals
AJAGBE and et. al., 2016. HOW ORGANIZATIONAL STRUCTURE AIDS BUSINESS
PERFORMANCE. CLEAR International Journal of Research in Commerce &
Management, 7(8).
Batocchio, A., Ghezzi, A. and Rangone, A., 2016. A method for evaluating business models
implementation process. Business Process Management Journal.
Bolton, R. and Hannon, M., 2016. Governing sustainability transitions through business model
innovation: Towards a systems understanding. Research Policy, 45(9), pp.1731-1742.
Brannon, D.L. and Wiklund, J., 2016. An analysis of business models: Firm characteristics,
innovation and performance. Academy of Entrepreneurship Journal, 22(1), p.1.
Chauhan, Y., Dey, D.K. and Jha, R.R., 2016. Board structure, controlling ownership, and
business groups: Evidence from India. Emerging Markets Review, 27, pp.63-83.
Paswan, A.K., Hirunyawipada, T. and Iyer, P., 2017. Opportunism, governance structure and
relational norms: An interactive perspective. Journal of Business Research, 77, pp.131-
139.
Paulus-Rohmer, D., Schatton, H. and Bauernhansl, T., 2016. Ecosystems, strategy and business
models in the age of digitization-How the manufacturing industry is going to change its
logic. Procedia CIRP, 57, pp.8-13.
Powell, K.S. and Lim, E., 2017. Investment motive as a moderator of cultural-distance and
relative knowledge relationships with foreign subsidiary ownership structure. Journal of
Business Research, 70, pp.255-262.
Qu and et. al., 2019. An integrated framework of enterprise information systems in smart
manufacturing system via business process reengineering. Proceedings of the Institution
of Mechanical Engineers, Part B: Journal of Engineering Manufacture, 233(11),
pp.2210-2224.
Skobkin and et. al., 2017. The development of a business-processes model for the quality
management system in the hotels. Journal of Environmental Management &
Tourism, 8(4 (20)), pp.775-783.
Spieth, P., Schneckenberg, D. and Matzler, K., 2016. Exploring the linkage between business
model (&) innovation and the strategy of the firm. R&D Management, 46(3), pp.403-
413.
Yaqin, M.A., Sarno, R. and Fauzan, A.C., 2017, September. Scalability measurement of business
process model using business processes similarity and complexity. In 2017 4th
International Conference on Electrical Engineering, Computer Science and Informatics
(EECSI) (pp. 1-7). IEEE.
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