Report on Key Sources of Law for UK Business - Business Law BMP4002

This report provides an overview of the legal context for business organizations in the UK, focusing on key sources of law and different business structures. It discusses unincorporated and incorporated business enterprises, including sole proprietorships, partnerships (general and limited), and limited liability companies. The report outlines the advantages and disadvantages of each structure, emphasizing aspects like liability, taxation, and ease of formation. It also provides recommendations for IOM Solutions based on the analysis of different business organizations, ultimately suggesting that a partnership would be the ideal business organization for expansion because it is simple to set up and does not require a lengthy and complicated process, and the amount of money involved is lower. The report concludes by summarizing the formation, management, and finance of an organization, as well as the fundamentals of each organization.

BSc (Hons) Business Management
BMP4002Business Law
Assessment 2
Report describing the key sources of
laws as the legal context for business
organisations in the UK
Submitted by:
Name:
ID:
Contents
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Introduction 2
Businesses & Organizations in the UK................................................................................2
The legal business structure of UK companies..................................................................3
Partnership...............................................................................................................................4
Limited Liability........................................................................................................................6
Recommendations for IOM Solutions..................................................................................6
Conclusion................................................................................................................................6
REFRENCES...........................................................................................................................7
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Introduction
Corporate regulation is a significant subject that covers all of the legal issues
that arise in the business world. For this reason, it is critical that each task be
performed in order to decrease the risk of error. Mercantile regulation is the cry of
business change. Various sorts of aspects on the subject of business and its unique
viewpoints are covered in these legal standards. Business regulation is progressed
during the establishment of a commercial, resulting in the enactment of laws and acts
that have aided in making business organizations carry out their missions more
effectively. The various forms of file enterprise businesses, as well as their benefits
and drawbacks, have been addressed. The IMO replies have been examined in
depth in the give up.
Businesses & Organizations in the UK
A commercial enterprise business enterprise is a legal entity formed for the
purpose of conducting business. This type of business is founded on regulatory
systems that oversee settlement and trade, property rights, and incorporation. The
majority of large commercial and business corporations have little legal liability. Any
business should be structured in accordance with the rules and regulations
(Fenwick, 2016). It is critical to understand that if any of the characters fails to
perform in accordance with the regulations, the company firm may be subjected to
prison costs. Unincorporated business enterprise and incorporated business
enterprise are two distinct types of business enterprise. Unincorporated corporations
are mentioned in this section. Unincorporated business enterprise: An
unincorporated business enterprise is one that has no legal rights and is free to
operate. Professional negligence is defined as when an expert fails to perform their
obligations to the stated general or breaches a duty of care. This type of action
almost often results in financial loss, bodily harm, or damage to their buyer or
consumer. A claim of professional negligence can be filed against anyone who is
thought to have knowledge of the services they give, such as an era or control
consultant, a surveyor, and so on. A situation in which one party is judged partially
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accountable for the illegal actions of a third party is known as vicarious legal
responsibility. In addition, the third party's personal share of the legal liability is
included. In situations where one party is supposed to be liable for and exert control
over a third party and is negligent in carrying out that obligation and exercising that
control, vicarious legal responsibility might arise. For the claim to be successful,
there must be proof that the service provided did not meet the requirements of their
profession, resulting in a disastrous outcome. Commercial enterprise hobby is
carried out at a lower level in these types of businesses. It contains a variety of
organisational structures, including the following:
The legal business structure of UK companies
This type of business is modest, and there is likely to be no one-of-a-kind way
to conduct business in it. It is critical to understand that whenever a sole
proprietorship is established, all of the hobbies must be carried out in accordance.
Furthermore, it has been suggested that the corporation's control must be fulfilled by
way of the investors themselves. Credit cards and non-public funding may be first-
rate reasserts for sole proprietorships in order to regulate the fund (Desai and Kroll,
2017). Such businesses are relatively easy to shape and have a considerably less
intricate shape. This category of commercial enterprise includes business companies
of the most effective sort. This sort of organization has a single proprietor who
operates a business. It is not considered a prison entity because it lacks the proper
registration procedure, such as a personal corporation. In this firm, the entrepreneur
is also fully and alone responsible for all types of sports related with the enterprise.
These firms do not require any complicated paperwork or a lengthy registration
process. The type of business entity does not necessitate documents such as
articles of association and incorporation. Only a reliable resource should be
organized for the production of financial assistance or finances. In order to run such
a business agency, one must follow guidelines and have a National Insurance
number or NI number with him for imparting services in this type of organization.
Only for the purpose of registering to a volume of self-assessment is registration
completed. To establish the business, National Insurance and HMRC must be
received in order to begin the business activity. These organizations should be
handled by a person, and their money should be managed by him. Funds can be
raised through friends, family members, and the use of a personal or non-public
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loan. The management of those firms is carried out by the most effective man or
woman, who takes on the entire responsibility of dealing with everything in order to
carry out business activities(Allen, 2016). Benefits of a single proprietorship include
the ease with which groups can be formed and the lack of a difficult process. It
requires fewer monetary assets to put it up. Disadvantages of being a lone
proprietor: While running a business, the proprietor is responsible for his actions, and
any losses must be handled by him. Self-employment tax must be paid by the
proprietor. One of the most fundamental advantages of those types of organisations
is that they have "sole authority." This means that the person who runs a business
has complete control over it, as well as the profits made by it. The 'challenge in
expansion' is a disadvantage of those types of businesses. Because the resources
available are limited and control is achieved by having a character stroll the
business, it will be difficult to expand further.
Partnership
Such business entities are founded by an agreement in which more than one
party is concerned about how to run a business of this type. These organisations
were formed with the primary goal of making money from business conducted under
the umbrella of a corporation. The company's profit and loss are split among a
number of partners. For a partnership, it also enjoys a tax benefit (Davitti, 2016). A
contract is signed between each of the parties in a partnership company to carry out
an activity. Such events can be of any kind, which means that an agency's
operations must be limited to partners exclusively. Events can be organized by the
government, non-profit organizations, or individuals. Partnership is a relationship in
which more than one person joins forces with the common goal of achieving a
common goal. Partnership corporations, it is claimed, require significantly less capital
and must adhere to strict rules. Whenever a partnership corporation is founded, it is
first necessary to have a deed that allocates rights and liabilities. Then there's the
matter of registering with HMRC. In those types of organizations that are run with the
help of more than one person as a partner. Findings are arranged through personal
organisations and the securing of bank loans. All of the companions involved in this
business are responsible for dealing with every aspect of it, and the legal obligation
for running the business rests with the companions. Advantages: The process of
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establishing this company may be simple and straightforward. The likelihood of
creating big amounts of money increases as the number of people involved grows.
Partnership disadvantages: The accomplice's liability is minimized. There is a lack of
harmony because disagreements can arise at any time. The following are the two
types of partnerships that have been described:
General Partnership
In most countries, a general partnership, the most basic type of partnership
under common law, is an organisation of people or an unincorporated company
having the following major characteristics. Agreement, proof of existence, and
estoppel are all required. Two or more people form a group. Unless otherwise stated
by law or in the agreement, the owners are equally and severally accountable for any
legal proceedings and obligations the firm may face (Bird and Park, 2016).
Advantage: Personal Income Flow, A common partnership allows all partners in a
business to immediately bypass gains and losses in their personal profits taxes.This
is similar to limited partnerships and limited liability companies. As a result, rather
than being treated as a separate commercial venture entity, the earnings earned by
the partnership are taxed at its non-public profit tax rates. This is ideal for tiny firms
where money changes hands quickly and income is a constant battle.
Disadvantage: Protection is in short supply, As part of a large partnership, all
partners are responsible for the company's debts as well as any criminal issues that
develop. Because you don't split the enterprise into a separate criminal entity, there
isn't any statutory criminal protection in place. And, in the majority of circumstances,
this exposure to legal responsibility renders common partnerships as bad vehicles
for business. It might also provide an experience in which each buddy is a separate
entity.
Limited Liability
A restricted partnership is a type of partnership in which a few of partners
make significant financial commitments and are solely accountable for the amount of
money they have committed. Restricted partners are protected from the size of their
investment in a restricted partnership structure. The main advantage for constrained
companions is that their personal legal responsibility for business debts is limited. In
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my opinion, a restricted companion may only be held responsible for the amount she
or he invested. Limited companions have a protected investment, knowing that they
can't lose more money than they've put in (Allen and et. al. 2016). The most major
disadvantage of a Limited Partnership is the lack of legal distinction between the
General Partners and the business itself.
Recommendations for IOM Solutions
Following the analysis of the case situation, it is clear that the ideal business
organization for expansion is a partnership. Because it is simple to set up and does
not require a lengthy and complicated process. Above that, the amount of money
involved is lower.
Conclusion
The concept of business and its establishment has been described in the preceding
file, which explains the formation, management, and finance of an organization. Advantages
and disadvantages have also been discussed in respect to the various organizations, as well
as the fundamentals of each organization. The report goes on to explore numerous types of
corporate groups.
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REFRENCES
Books and journals
Allen, C.H. and et. al. 2016. Proceedings of the 2016 Delaware Business Law
Forum: A Review and Debate of the Public Policy Implications of Delaware
Law. Bus. Law. 72. p.755.
Allen, S., 2016. Giving voice to emotion: voice analysis technology uncovering
mental states is playing a growing role in medicine, business, and law
enforcement. IEEE pulse. 7(3). pp.42-46.
Bird, R. C. and Park, S. K., 2016. The Domains of Corporate Counsel in an Era of
Compliance. Am. Bus. LJ. 53. p.203.
Davitti, D., 2016. Refining the Protect, Respect and Remedy Framework for
Business and Human Rights and its Guiding Principles. Human Rights Law
Review. 16(1). pp.55-75.
Desai, D. R. and Kroll, J. A., 2017. Trust but verify: A guide to algorithms and the
law. Harv. JL & Tech.. 31. p.1.
Fenwick, M., 2016. The new corporate criminal law and transnational legal risk. In
Flexibility in Modern Business Law (pp. 149-171). Springer, Tokyo.
Hamad, H., Elbeltagi, I. and El‐Gohary, H., 2018. An empirical investigation of
business‐to‐business e‐commerce adoption and its impact on SMEs
competitive advantage: The case of Egyptian manufacturing SMEs. Strategic
Change. 27(3). pp.209-229.
Heminway, J. M., 2016. The Role of Business Counsel as Compliance Gatekeepers:
Toward Understanding and Combatting Reckless Disregard for Legal and
Ethical Compliance in Business Entities. Wayne L. Rev.. 62. p.7.
Katsos, J.E. and AlKafaji, Y., 2019. Business in war zones: how companies promote
peace in Iraq. Journal of Business Ethics. 155(1). pp.41-56.
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