Business Law: Company Types, Formation, Management, and Funding

This presentation provides an overview of different types of business organizations, including sole proprietorships, partnership firms, limited liability partnerships, and limited liability corporations. It explores the formation, management, and funding aspects of each type, highlighting their respective advantages and disadvantages. The presentation begins with an introduction to business organizations, emphasizing their purpose of either profit-making or public service. It then delves into the specific characteristics of each company type, discussing the requirements for establishment, the liability of owners, and the roles of management. The presentation concludes by summarizing the key differences between the various business structures and their implications for funding and operations, supported by references to relevant academic sources and industry reports.

Business
Law

Table of Content
• Introduction
• Many different types of legal companies, its formation,
management, and funding
• Conclusion
• References

Introduction
Persons or groups of individuals can create a variety of different
sorts of business organizations. The goal of these organizations is
either to make a profit or to work for the common good. The
purpose of this presentation is to learn about various business
organizations, their kinds, and how they are formed. It also
intends to examine its benefits and drawbacks.

Many different types of companies, its
formation, management, and funding
• Sole Proprietorship
• Partnership Firm
• Limited Liability Partnership
• Limited Liability Corporation

Sole Proprietorship
This is the simplest and most basic
business form, in which the
entrepreneur is self-employed and
also is entirely liable for the
company's governance and
management. The sole requirement
for starting a lone trader company is
that the owner registers with HMRC.

Advantage and Disadvantage of sole
proprietorship
Advantage: The firm is controlled by a single individual
who has complete control over all decisions and
activities.

Partnership Firm
This is a company structure that requires
the participation of two or more people in
order to create a corporation. A
partnership is the name for this sort of
business. Under this approach, all owners
are equally accountable for the firm's
profits and losses. All duties, tasks, and
privileges are allocated equally.

Advantage and Disadvantage of
Partnership Firm
Advantage: In this corporate structure, all loss and risk
obligations are evenly spread among partners, with no
single partner bearing the brunt of the load.

Limited Liability Partnership
It's a company organization that looks like a
partnership, but the obligations of the partners aren't
the same. In such an organizational structure, the
partners are solely responsible for any obligations
incurred as a consequence of the cash they obtained.
All owners must register with HMRC, and the firm
must be registered with Companies House before a
limited liability partnership (LLP) may be created. A
limited liability partnership's owners are solely liable
for the amount of money they put into the firm.

Advantage and Disadvantage of Limited
Liability Partnership
Advantage: This is the sort of company structure that is
simple to set up and run.

Limited Liability Corporation
This is a business structure in which the
company appears to have its own legal life
and is treated independently of its owners
and management. This basically implies that
if something goes wrong at the firm, it will
be held responsible for the actions taken in
its name, not the management or owners.
These businesses are managed by the
corporation's board of directors and
investors.

Advantage and Disadvantage of Limited
Liability Corporation
Advantage: This corporate form provides the most
advantages over any other sort of business structure. It also
has its own legal status, apart from that of its administrators
or owners. The investors' obligation refers to the part of the
investment that the investors make in this sort of
organization.