Business Frameworks, Finance, Sectors, and HR Policies

This report provides a comprehensive analysis of various aspects of business operations within the UK economy. It begins by examining different legal structures for businesses, including their strengths and weaknesses, and then evaluates various sources of finance available to startups, such as venture capital, bank loans, and angel investors, outlining their pros and cons. The report then delves into the three primary sectors of the UK economy, detailing their characteristics and contributions. Finally, it identifies and discusses the importance of two key HR policies in the modern workplace. The report aims to provide a holistic understanding of business fundamentals, financial strategies, economic sectors, and human resource management within the context of the UK business environment.

Structure of
Business

Contents
INTRODUCTION...........................................................................................................................1
QUESTION 1...................................................................................................................................1
Types of frameworks or legal statuses of the business together with its strength and weakness.
................................................................................................................................................1
Evaluation of various sources of finance that is available for business start- up together with
its pros and cons.....................................................................................................................7
QUESTION 2...................................................................................................................................8
Three different types of sectors which operate within the UK economy and the difference
between all. Comment on their value in UK economy.........................................................8
QUESTION 3.................................................................................................................................10
Identify two HR policies and its importance in modern workplace.....................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
A business can be understand as a collection of activities which are undertaken for the
purpose of earning profit so that the entire Pandora can leave the life by doing trading or
manufacturing of production services. The main purpose of a business organisation is to to
undertake various activities in order to germinating a maximum profit. Business operations are
done in an environment which implies a factor on its working and decision-making. It is divided
into two categories a first one is internal environment as it include the factors which affect the
organisation internally like employees vision mission resources and many more. Another factor
is external environment as it include the factors which are not in the control of organisation and
they influence the organisation a lot. They have the power to stop the functions of organisations.
Below mentioned report is divided into three parts or questions. Poster path include all type of
business is a and various sources of funds which are available for a Startup for a business
organisation. Second part of this report covers all type of factors which affect the economy of
United Kingdom. At the end the third part of this report is dealing with the policies of a human
resource management.
QUESTION 1
Types of frameworks or legal statuses of the business together with its strength and weakness.
Every business organisation have to undertake a several number of activities which help them in
achieving the goals and objectives of. It has been found that business has been divided in various
forms on the basis of several factors with a particular Momentum which is completely based on
the prescribed demand for the offering. Each and every type of business organisation have their
various aims but directly or indirectly they focus on the Rapid growth by providing goods and
services to the audience which are available in the particular gap in the market. Below mentioned
table is showing the various kinds of business is a and start-up:
Legal statuses of
businesses
Strength Weakness
Public
organizations:
These are those
There are mainly three
types of public
organizations which
 The main
advantage of
this it has
 The
weakness of
these
1

businesses which
are owned and
controlled by the
government with a
sole motive of
doing welfare of
the society. Their
purpose is not to
generate profits
rather they only
works to do welfare
for the society by
fulfilling the
demand of the
people.
includes the following-
 Central: These are
owned managed
and controlled by
the central
government and its
working is spread
in whole of the
country.
 State: These are
also owned and
managed by the
central government
but its functioning
is in a particular
state.
 Local: These are
those organizations
which are managed,
controlled and
owned by the local
authorities of
government and its
working is only in
particular local area
of the state
(Plotnikov and
Plotnikova, 2019).
autonomy
where it
enjoys
flexibility and
independence
in the
operations.
 The public
organizations
can formulate
such policies
which
promotes the
welfare of
peopleas these
are subject to
parliamentary
scrutiny.
businesses is
that there is
high level of
political
interference
and has to
act in
accordance
with the
political
masters.
 There are
many
instances
when the
interest of
consumers is
ignored by
these
corporations
as they
operate in
monopolies
and absence
of
competition
can result in
lethargic
functioning
which can
reduce the
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focus on
consumers,
thereby
resulting in
ignoring
customer
interest.
Private
organizations:
These are such
businesses which
are owned and
managed by the
private individuals
and have a sole aim
of generating
maximum
profitability.
Sole proprietorship: These
are those organizations
which are owned by single
individual and the owner
has only all responsibilities
and powers to run the
business.
 The major
strength of
this
organization
is that there is
sole control
and
management
of the owner
and no
interference
of third
person.
 The sole
trader is liable
only to pay
the personal
income tax on
profits which
is earned by
firm.
 The biggest
weakness of
this business
venture is
that there is
personal
liability of
the owner for
any debt or
liability of
owner.
 This business
usually gets
ended by the
departure or
death of
owner as the
business is
not separate
legal entity.
Partnership: It is that
business which is owned
and managed by two or
 There is
ahring of
responsibility
 Each partner
is liable for
the liability
3

more persons who are
known as partners. They
mutually share all
responsibility, profits,
capital and losses.
and decision
making
among the
partners as
per their
knowledge
and expertise.
 There is split
of income
which helps
in getting
advantage of
tax savings
(Ninosheva,
2020).
and debt of
all
partnersand
firm as there
is joint
liability of
all.
 There is
unlimited
personal
liability of
all the
partners for
the firm.
Limited liability
partnership: This is the
extended version of
partnership butthere is
limited liability of the
partners. It is the separate
legal entity distinct from
partners.
 There is
limited
liabilityof
partners only
to the extent
of their
capital
contribution
and the
personal asset
of partners is
given
protection
from liability.
 It is easier to
runas
 In this, one
partner may
get more
rightsso
there is no
one vote per
one share
system.
 There are
high
penalties for
non-
compliance
as compared
to private
companies
4

compared to
private
companies
and has easy
procedure to
wind up.
Companies: These are the
separate entities distinct
from owners and are
known as artificial
personalities where they
have power to sue and be
sued by anyone. It is
mainly of two types, public
company is when it is
owned by general public
by way of initiating share
capital by subscription of
shares where shareholders
are owners. Second is
private company that is
owned by private
individuals (Migliettaand
et. al., 2018).
 There is
limited
liability of
owners to the
extent of their
share in the
business only
and no
personal
liability
arises.
 The company
has perpetual
succession
which means
that owner
may come
and go but
company shall
go on forever.
 There is lack
of secrecyin
the business
as their
working is
subject to
public
disclosure.
 There is
several legal
requirement
s which are
required to
be fulfilled
which
consumers
more effort
and time.
Voluntary
organizations:
These are non-
profit organizations
which are managed
These are mainly of two
types which includes the
following-
 Associations:
These are governed
 There is
public trust
and
recognition
which helps
 There is
more time
commitment
while
working in
5

by the staff called
as volunteers. They
only get the
expenses which
incurred while
working.
by the legal
document, known
as Constitution
which provides its
objectives,
structure,
memberships and
powers.
 Trust: It is
governed by the
trust deed which
provides objectives
of it together with
trustee’s names.
in carrying on
social cause
in easy
manner.
 They are
given relief
from the
taxes also.
this.
 The aim of
this
organization
is only to do
social work
and not
generating
profits so it
lacks
economies of
scale
(Uzuegbuna
m and et. al.,
2017).
Charitable
organizations:
These are also non-
profit ventures
which must be
registered in order
to claim the
charitable status
from government.
These work for
specific interest and
has paid staff.
 Unincorporated
associations: It is
the membership
association where
members choose
which activity they
want to carry on. It
is aimed to do work
for public benefit.
 Charitable trust:
These are run by
small group who
are called trustees
and they are
appointed rather
than elected and is
 It is aimed for
the social
cause which
gets public
trust in return.
 They cannot
use the assets
for other
purpose can
only use for
charitable
objectives.
 They are
dependent
on charities
for their
funds in
order to
carry out its
activities.
 They are
required to
comply with
many
regulatory
requirement
s which
include
6

not incorporated. accounts and
returns
preparation.
Evaluation of various sources of finance that is available for business start- up together with its
pros and cons.
Below mention the various sources of funds which are very helpful for the new startups in
the United Kingdom to work:
 Venture capital: under the source of capital investors focus on supporting the talent of
entrepreneur business skills and finances in order to obtaining the capital gains for the
long term by exploitation of market opportunities.
Pros
Venture capital is providing the opportunity to the business organisation in growing and
expanding because the investors are ready to take the risk as they are formed believers of the
success of organisation.
Cons
Venture capitalist wants to acquire the equity of Organisation in written as they are providing
huge funds to the startup. When the profit of organisation is calculated it is divided among all the
capitalist. They become the part of board.
 Bank loans: it is the most common option of entrepreneur when starting a business
organisation as the banks are active in the market and they are in the efforts of business is
so that they can provide loan to them. These are fixed term loans as the organisation is
required to make regular payment and provide a fixed interest rate.
Pros
The bank loan do not provide any set of rules which dedicate the terms to spend the money.
Antreprenor is completely free to spend the money in business as per their needs.
Cons
The entrepreneur is required to pay interest on the amount which they bought from Bank. Along
with this they are required to pay a fixed amount of installment every month even if the cash
flow is not in the initial stage.
7

 Angel Investors: ultrafil to those individuals which have extensive experience in their
business. They are responsible for providing the early capital in business and they require
equity in the business organisation in the exchange of it. It can be said that IT Act as
monitor because they are sharing connections and experience to properly in startup
growth.
Pros
Angel investors also shares their experience along with providing funds to the startups and
provide guidelines to the entrepreneurs which leads to the growth of organisation. Usually they
take complete part in the decision making process.
Cons
Normalisation issues necessary guidance by angel investors but it may lead to the more control
of Angel investors in business at exit amount.
QUESTION 2
Three different types of sectors which operate within the UK economy and the difference
between all. Comment on their value in UK economy.
The economy of the business is usually divided into various sectors and the businesses exist in
these in order to provide the product or service. The businesses are engaged in having outputs
and inputs and it must add value to it at the time of production. In the United Kingdom economy,
there are three types of sectors wherein the venture operates. They all form the chain of
production that provides the customers with the final goods and services. These are narrated
thereunder-
 Primary sector- It is also called as extraction sector as it involves the raw materials.
These may include two kinds of resources such as renewable which involve the wool,
fish or wind power and the non- renewable resources like mining for coals, oil extraction,
etc. It generally includes acquiring raw materials. Earlier, there were millions of people
employed in this sector in UK but the advancement in technology declined this sector.For
example, the businesses which operate in this sector includes farming, fishing, mining or
oil.
8

 Secondary sector- This is involves in manufacturing of the products and distributing the
finished goods. It usually takes the raw materials and convert them into the high valued
1finished offering. At initial level, this sector wasbased on the labour intensive working
but with the development of technology, the work of man- made shifted to machinery
work. This provided ample amount of benefit to the economy as the cost of production
reducedand the productivity of workers enhanced. For example, Jaguar works in this
sector as it is involved in manufacturing or any building or food production business
(Wang, Ang and Su, 2017).
 Tertiary sector- It is also known as the service sector as it involves in intangible aspect of
the offering to the customers and businesses. It includes the retail, leisure, finance,
hospitality, transportation, communication and many other services. This sector has seen
the growth when the labour productivity increased in UK by upcoming technologies
which resulted in high disposable income. This enabled high purchasing and spending
power of people where they were able spend on luxury services like tourism and
hospitality. For example, Hilton Hotel, Tesco Plc, Barclays Banks, etc. are all examples
of this sector.
Basis Primary Secondary Tertiary
Meaning It involves extracting
raw materials.
It involves converting
raw materials into
finished goods.
It involves the
services such as
leisure, hospitality,
financial, etc.
Working It uses traditional
techniques of working
and is unorganized.
It uses the more
reliable production
methods and is the
organized sector.
It uses the method of
modern day logistics
in order to execute its
functions and is
organized fully.
Employment rates The minimum or low
proportion of
population is engaged
in this sector as
machineries have
This has average
amount of
employment as its
employment rate
tends to declined due
The major percentage
of population in UK is
involved in this sector
as it has high growth
opportunities
9

taken jobs from this
sector.
to coming of
technologies in
manufacturing units.
(FARSTAD, 2019)
Value in UK economy:
UK is considered as the sixth largest economy in the world as the quality of life in this
sector is high and the economy is also diversified. The main sectors which contribute to the UK
economy are service, construction, manufacturing and the tourism. The tertiary sector contributes
majorly to the GDP of UK which consists of various industries like retail, finance, entertainment
and many others. As per the UK Office for National Statistics, the tertiary sector of UK is the
largest one which accounts for more than three quarters in UK. The secondary sector contributes
mainly less than 17.41% while the primary sector contributes only 0.61%(Statista, 2021).
As in 2020, the distribution of workforce in UK across the sectors was approximately
81.34% in service sector, 17.66% in manufacturing sector while only 1.01% in primary
sector(Statista, 2021).This shows that the service sector in UK contributes to its economy
majorly and adds value to its GDP.
QUESTION 3
Identify two HR policies and its importance in modern workplace.
The Human resource management is an essential part of the workplace as it helps in managing
the employees in an effective manner. The policies of HR are the written description of the rights
and responsibilities of both employee and employer. There are many HR policies which are
required by the law to be made at the workforce so that their rights are protected. This must be
communicated to each employees and the expectation of employers must be clarified to the
workforce so that there is smooth functioning. Two HR policies are illustrated below-
 Equalityand Diversity policies- It is very important for the businesses to have such policy
so that it can manage the employees which come from different perspectives, cultures and
backgorunds.it is very important for the employer to be inclusive and diverse so that ut
can fulfil its responsibility to make the difference for the people. the Equality Act of 2010
provides that there must not be any kinds of discrimination or ill-treatment at the
10

workplace and every individual must be given equal and fair chance or opportunity to
work. In order to adhere with this legislation, it is important for the organizations to have
this policy so that the employees get fair and equal working environment to work in.this
policy helps in preventing the discrimination from workplace and is aimed to bring
equality and fairness so that the employees can feel valued and happy while working in
the organization (Kaul, 2020). By drawing this HR policy, the organization can seek to
remove the unnecessary barriers which may come while seeking any opportunity by
promotion, training and development and the career planning. Hence, it can be said that
each organization must have theequality and diversity policy in its working so that the
employees are managed by HR in an efficient manner and this will contribute in
enhancing the performance and productivity of the workforce.
 Health and safety- This policy is required to be written down by every organization who
have more than five number of workforce. It is aimed to protect the people associated
with the business such as employers, employees, visitors and the customers. The Health
and Safety at Workplace Act, 1974 places the overriding duties on both employer and
employee where the employer is required to take necessary steps in order to protect the
safety and wellbeing of the employees while the workforce is required to take measures
which can protect itself from any harm or danger. It sets out the general approach relating
to health and safety and explain the ways in which the employer must manage the H%S
of the employees. This policy helps in explaining the duties of both employer and
employee in managing the safety of all at workplace. This is the legal requirement for
every organization and not the matter of choice. The main reason for this policy is to
clarify and reinforce the standards which are expected by the employees it demonstrates
how the companies can operate appropriately and efficiently. It helps in ensuring
consistency in the decision making (Moussiopoulos, 2017). It is the legal as well as moral
requirement for workplaces at this modern time to have the workplace health and safety
policy in their organization so that prior risk and hazardous activities are identified and
measures are taken to eliminate or reduce them. This also helps in making the employees
feel safe which ultimately contributes in reduced staff turnover and retaining of the loyal
employees.
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CONCLUSION
From the above report it is concluded that all the business organisation focus only on work
with two purpose which include maximisation of profit and following their corporate social
responsibility so that they can do some Welfare of the society as well. The businesses are made
for the purpose of generating revenue as it plays an important role in uplifting the economy of
United Kingdom as it provide employment to various people which leads to the improvement of
standard of living of them. It has been found that there are four types of business organisation
which include private Public Charitable and voluntary. Above mentioned report is showing the
difference between all these organisations in a table form. All the organisations have their own
strengths and weaknesses. While starting any startup it is necessary to have proper financial
sources for the purpose of funding. This report is also showing the various funding sources by
which the organisation can source their capital. For the same purpose it is also analysed the title
at the policies are also important for every organisation as it helps in controlling all the staff
members so that they can improve their performance in an effective and efficient manner.
12

REFERENCES
Books and journal
Online
Statista, 2021 [Online] Available
Through<https://www.statista.com/statistics/270382/distribution-of-the-workforce-
across-economic-sectors-in-the-united-kingdom/>
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Statista, 2021 [Online] Available
Through<https://www.statista.com/statistics/270372/distribution-of-gdp-across-
economic-sectors-in-the-united-kingdom/>
14