BMP4002 Business Law: Analyzing the Legal Context of UK Organizations

This report provides an overview of the legal context for business organizations in the UK, focusing on key sources of law, liabilities, duties, and responsibilities essential for smooth operations. It explores various legal structures, including sole proprietorships, general partnerships, partnerships, and limited liability companies, highlighting their advantages and disadvantages. The report also touches upon the significance of business law in maintaining transparency and enhancing the reputation of firms, emphasizing the importance of legal compliance in fostering positive relationships with customers and employees. The partnership structure is recommended for IOM Solutions, citing its legally distributed roles and responsibilities.

Business Management
BMP4002 Business Law
Assessment 2
Report describing the key sources of
laws as the legal context for business
organisations in the UK
Contents
1

Introduction
Business law refers to those actions which are made in legal manner by central or state
government. The main purpose for initiating this law by government is to increase the job
security and safety of employees in all types of department. The other important fact is that
with the help of legal rules and regulations illegal activities are highly decreased which are
responsible to create threat for organization reputation. Due to the use of legal laws some
difficult activities are done in easy manner (Blackmon, 2019). It includes resolution of
disputes between employee and employer and dealing of commercial matters easily. With
help of using different types of laws employees always provides quality product and services
to all customer segment in long run. In this report different types of liabilities, duties and
responsibilities are described which is essential for organization to run their activities
smoothly. This report will be covered with various types legal structure of company. Legal
acts and norms are also essential for managing good relation between all levels of department
effectively for long period.
Businesses & Organisations in the UK
Business mainly refers to management of whole employees and organizational
functions in effective manner. With help of following laws by the organization transparency
are effectively maintained in front of consumers. It leads to enhance their profit in high rate
between the competitors for long time. The different types of regulations which are used by
government for controlling the company are employment law, intellectual property law and
others. All these rules and acts are important to enhance the work efficiency of employees in
their job in long run (Cauffman, 2019). Business transaction basically refers to digital process
and in this process customers made multiple transactions for buying the services and products
in low time. For maintaining legally between producer and customer, records are saved and
maintained in the company system and these records are consider as a proof. In this report
different types of liabilities are mentioned which was followed by organization in UK. It is
useful for enhancing the productivity of company for long time. Liabilities includes vicarious
liability, business liability and so on. Vicarious liability refers to secondary and alternative
liability which is done from various agencies and subordinates. But business liability refers to
generate the profit of company from personal sources.
The legal business structure of UK companies
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Sole Trader
Sole trader refers to whole departmental and employees activities of company are
managed by one individual person as a owner (Gafni, Hudon and Périlleux, 2021). It is the
very common and easy type of business structure. Due to this structure communication
between all levels of employees are systematically maintained for long duration.
The structure of sole trader is formed by single person as a small startup in suitable
destination. In this startup very low amount and formalities are required for run their business
successfully. In this structure it is mandatory for company owner that they issue particular
certificate and license according to their business. It is highly helpful for run their activities
effectively.
In this stage the tax are directly reduced business expenses, income and profit of
single person within organization.
In sole trader roles and responsibilities of lower level workers are effectively
controlled and monitored by the company owner. It means with help of this structure
unlimited liability are easily gained by single owner in long term.
Advantages -
 Due to single ownership decisions are directly made by top level management in fast
manner (Joshi, Inouye, and Robinson, 2018). It is also helpful for achieving
meaningful and accurate content directly from company owner which leads to
enhance the employee work efficiency.
 Due to this structure coordination are effectively maintained between all owner and
employees. It is highly essential for removing misconduct activities from employees
also increased the profit of organization in high rate.
Disadvantages -
 Due to unlimited liability by single owner negative thinking are enhanced in the
minds of workers. The main reason for spreading negativeness between employees is
to increase the target and work load in their job. Because due to facing high workload
employees easily loss their passion and interest towards their job.
 In this stage chances are highly increased for damaging the positive relations between
the owner and employees due to bad behavior by top management. It leads to
decrease the company image between customers easily.
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General Partnership
General partnership refers to verbal contract which is depend on group of members in
a business. In this structure trusted persons and family members are highly involved to run
any type of business (Kuruppu and Muscat, 2019). But the main feature of this structure are
no written contract is essential in this business due to the trust.
This structure is formed with help of gathering trustworthy and honest persons as a
group. It means in this type of group or structure no legal barriers are connected directly for
run their departmental functions within the organization.
In this stage tax are deducted from each company partners according to their profit on
monthly and daily basis.
In general partnership liabilities are distributed between three or more persons for run
the company effectively. Due to distribution strategy final decisions are made after the equal
opinions of all members and in slow speed. It leads to decrease the work efficiency of
employees.
Advantages -
 Due to unwritten agreement employees are able to do their work in friendly
atmosphere which easily developed their ability and skills in their job. Due to friendly
atmosphere trust of workers towards organization are effectively maintained for long
period.
 In this structure new business members are easily joined because according to this
agreement no legal barriers are considered by company. But the ultimate purpose of
this type of structure or group is to increase the portfolio of firm effectively.
Disadvantages -
 In this agreement conflict between business partners are easily raised due to having
different opinions (Taylor, 2019). Due to unwritten agreement legal norms and
regulations are not attached directly from government. It means when norms are
attached legally then, companies did not facilitate decent wages to workers for their
work.
 In this type of contract flexibility are highly reduced for employees which is not good
for their work efficiency. Due to this it is necessary for management that they must
facilitate flexible targets to employees. It leads to reduce the loss of relationship
between employee and employer.
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Partnership
It basically refer to contract between two or more individuals and in this structure
intermediaries are highly involved in the form of managers and subordinates. Due to these
interference decisions by top level management are made in slow manner.
Partnership are formed with the help of agreement in written format by the group of
outside persons. This contract are highly essential for run their organizational functions in
legal manner (Levine, 2018). This agreement is also known as limited liability partnership in
some countries.
In this structure also tax are collected from all business partners individually
according to their profit.
In partnership roles and responsibilities are divided to all departments and workers in
the form of liabilities. Due to this contract liabilities are distributed according to legal format
which is essential for increase the workforce within organization. It also helped to facilitate
best product and services to consumers in long run.
Advantages -
 Due to effective utilization of contract by the management behavior and discipline of
the workers are effectively maintained towards company and customers. With help of
written agreement employees put their full effort for deliver the service and product to
consumers in time.
 In this structure roles and responsibilities are clearly mentioned and informed to all
business partners and other employees in effective way. Due to this misunderstanding
are highly reduced between workers within the organization.
Disadvantages -
 Due to slow decision making by senior management employees are not able to do
their task in efficient manner (Partiti, 2021). Because due to taking time by seniors
low level workers did not received accurate and reliable information for completing
the work in time.
 Due to the interference of middle level employees in the form of managers the
connections between company owner and lower level employees are getting damaged.
Because due involvement of manager the real problems of the employees are not
reached to top level authority.
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Limited Liability
Out of the all structure limited liability company is the very effective structure in
organization. In this stage responsibilities and roles are effectively distributed between all,
levels of management. It means that due systematic distribution of liabilities risk are highly
decreased in business at global level. It also helped to enhanced the revenue of company at
high rate.
The structure of limited liability company are formed with the help of using their
address, members and name of organization (Peterson, 2019). It means that company used
various strategies for their expansion which includes creating product awareness between
public in market through advertising etc.
In limited liability structure tax are deducted from company investment which are
made at large level. But the main motive of this investment by firm is to facilitate unique
services to new and existing consumers for long duration.
In this structure liabilities are divided in wide manner for run their activities in smooth
manner. It means that in this stage responsibilities and roles are highly important for every
and each employee with in the company. Due to their global presence company always used
the talented and skilled workforce in company. Due to use skilled employees positive
relationship are maintained with customers easily.
Advantages -
 In this structure company did not required more paper work for doing their business
because they facilitate their services to consumers at global level. This structure also
helps organization to maintain stability in their performance in long run.
 In limited liability company flexibility are mostly focused by management which
leads to increase the workers productivity easily (Wagner, 2019). With help of
flexibility good behavior and attitude are maintained between employees at time of
doing job. In this structure company's mission, vision and objectives are gained by
company in short time.
Disadvantages -
 Due to wide range of activities workers are highly faced stress or pressure in their job
because in this stage task are assigned by both top and middle level management. Due
to this negative word of mouth are spread by employees towards company with
others.
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 The major disadvantage of this structure are their policies are not effectively
implemented in some locations due to their global function (Spicer, 2019). It means
that when any customer get defective product then management take lot of time for
resolving this problem. Because at that time consumer applied return and exchange
policy.
Recommendations for IOM Solutions
From the evaluation of above data it is understood that partnership structure is
suitable strategy for business. Because in partnership roles are legally distributed to every
department and employees in written format. The major benefit of this structure is to illegal
activities are easily reduced by every category workers. Because for company the most
important element is facilitate quality product and service to customers in any situation. The
talents and skills of the employees are also considered in this stage by organization. Because
without effective utilization of their talent profit are generated in time. Therefore in
partnership employees do their job in limited manner which is useful for enhance their
workforce easily.
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Conclusion
After the analysis of above information it is concluded that business low is a important
component for increasing the reputation of firm. With help of business law transparency are
also maintained in their activities in front of customers. Because when company provides
transparency then only consumer liked to avail their services at high rate. Effective business
law also helped to fulfill the basic needs of the employees on regular basis which includes
basic wage, increments and others.
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References -
Books and Journals
Blackmon, M. C., 2019. Revising the Debt Limit for" Small Business Debtors": The
Legislative Half-Measure of the Small Business Reorganization Act. Brook. J. Corp.
Fin. & Com. L., 14, p.339.
Cauffman, C., 2019. New EU rules on business-to-consumer and platform-to-business
relationships. Maastricht Journal of European and Comparative Law, 26(4), pp.469-
479.
Gafni, H., Hudon, M. and Périlleux, A., 2021. Business or basic needs? The impact of loan
purpose on social crowdfunding platforms. Journal of business ethics, 173(4),
pp.777-793.
Joshi, A. M., Inouye, T. M. and Robinson, J. A., 2018. How does agency workforce diversity
influence Federal R&D funding of minority and women technology entrepreneurs?
An analysis of the SBIR and STTR programs, 2001–2011. Small Business
Economics, 50(3), pp.499-519.
Kuruppu, N. and Muscat, O., 2019. The Application of Benford’s Law in Fraud Detection: A
Systematic Methodology. International Business Research, 12(10), pp.1-10.
Levine, S. J., 2018. 18. Professionalism without Parochialism: Julius Henry Cohen, Rabbi
Nachman of Breslov, and the Stories of Two Sons. Jewish Law and American Law,
Volume 2, pp.42-60.
Partiti, E., 2021. POLYCENTRICITY AND POLYPHONY IN INTERNATIONAL LAW:
INTERPRETING THE CORPORATE RESPONSIBILITY TO RESPECT HUMAN
RIGHTS. International & Comparative Law Quarterly, 70(1), pp.133-164.
Peterson, T. D., 2019. Categorical Confusion in Personal Jurisdiction Law. Wash. & Lee L.
Rev., 76, p.655.
Spicer, J., 2019. ‘That’s their brand, their business’: how police officers are interpreting
County Lines. Policing and Society, 29(8), pp.873-886.
Taylor, S. D., 2019. Can business rights alleviate group-based inequality in sub-Saharan
Africa? Understanding the limits to reform. The Journal of Development
Studies, 55(3), pp.420-436.
Wagner, G., 2019. Robot, Inc.: Personhood for Autonomous Systems?. Fordham L. Rev., 88,
p.591.
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