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 res...Read More

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.

Conclusion
This presentation concludes that there are numerous
different types of corporations that are established,
managed, and funded in different ways. Every entity is
established in a unique way, and it is managed in a
unique way. All of the businesses use different methods
to raise cash for their operations and administration.

References
• Miller, D., 2019. The resource-based view of the firm. In Oxford Research Encyclopedia of Business and
Management.
• Novak, W.J., 2019. Institutional Economics and the Progressive Movement for the Social Control of
American Business. Business History Review, 93(4), pp.665-696.
• Reif, L.C., 2017. The UN Guiding Principles on Business and Human Rights and Networked Governance:
Improving the Role of Human Rights Ombudsman Institutions as National Remedies. Human Rights Law
Review, 17(4), pp.603-632.
• Sneed, T., 2019. The Academic Law Library's Role in Cultivating the Rural Lawyer. SDL Rev., 64, p.213.
• World Bank, 2019. Doing business 2020. The World Bank.
• Yeoh, P., 2017. The fourth industrial revolution: technological impact and privacy and data security
issues. Business Law Review, 38(1).

Thank You