Structure of Business Report: Legal, Finance, and HR Policies Analysis

This report provides a comprehensive analysis of business structures, focusing on legal statuses, finance sources, and human resource policies. It begins by defining business structure and its importance, then delves into various legal statuses of organizations, including limited companies, PLCs, and charities, with an examination of their advantages and disadvantages. The report then explores different sources of finance, such as bank loans, retained earnings, and equity capital, evaluating their strengths and weaknesses within the context of a clothing business. Furthermore, the report examines the UK business economy, covering primary, secondary, and tertiary sectors, and concludes with a discussion on the importance of human resource policies in the workplace. The analysis provides a detailed overview of the chosen topics, offering a well-rounded perspective on the subject matter.

Structure of Business
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Contents
INTRODUCTION...........................................................................................................................3
Question One...................................................................................................................................3
A) Various legal statues of the organisation...........................................................................3
B) Source of finance with their strength and weakness related for existing business idea....6
Question...........................................................................................................................................7
Business Economy of UK and different sector......................................................................8
Question.........................................................................................................................................10
Human-Resource policies with their importance at the workplace......................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Business structure is explained as a process of generating, processing and formulating the
infrastructure which is essential for managing and controlling the company functions and
operations. Types of business, profits generation, develop of system, etc. is considered as the
factors which are related with business structure. The primary role of business structure is to
accomplish organisation goals and objectives in a legal manner. By set of an appropriate
business structure, management enable the organisation for perform all functions in an ethical
and creative manner (Agwu, 2018). This report will focus on the legal status as well as strength
and weakness which are related with business. Finance is the blood of a business and it perform a
crucial role for the workforce and management to perform routine activities so evaluation of
various finance sources will also be understand by this report. In the last, HR policies and its
importance at the workplace is learned from the upcoming report.
Question One
A) Various legal statues of the organisation
Basis Limited PLC Charity
Foundation The term limited
organisation is
controlled with
formulate a
community known as
board of directors.
Private or public
limited organisation is
identified as the PLC
and they are
controlled by owners.
Charity organisation
is considered as
limited liability and
they are based as per
society requirements.
Essential to establish
company
Company law of UK
require states that
name of business,
location or address,
ownership, etc. are the
requirements related
with limited company
laws.
Minimum share
capital to establish
business as PLC is
approximate £50,000.
Another important
rule for business is to
offer liquidity to the
shareholders.
Government support
and engagement of
volunteer with a
purpose of individual
and society
improvement are
considered as
important requirement
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for charity business.
Source of finance Limited organisation
raised funds from the
support of
government.
All decisions related
with finance business
are considered from
the stock market.
Management is
identified with the
motive of managing
financial source.
LIMITED
Limited is identified with motive of managing and performing business as it helps to control the
work business and it helps to support the corporate structure. This helps to control business
operations among all over the world. Limited company relates with the motive of managing and
controlling business at international level.
ADVANTAGE
 To Delegate Liability- With involvement of different features an organisation delegate
the liability of company to the stakeholders (Aleksandrova, Aleksandrov and Vasiliev,
2018). It works with motive of minimising the insolvency related business.
 Tax-related benefit- In the context of UK, limited organisation gain benefit from business
policy for save all amount related with tax. This help business for perform maximise their
profits through perform work according to the tax-saving policy.
DIS-ADVANTAGE
 Share- From the perspective of stock holders this is understand that sometimes share are
sold by management on private basis. So gain of funds from the outside source generates
problems for organisation to work.
 Limited liability- The perspective related with rules and regulations help organisation for
protect overall rights related with organisation. To protect the rights it is complex and
difficult to manage business.
PLC
Public or private limited companies perform their work with motive of managing business and it
helps to complete work by gain support from the general public (Banerjee and Mishra, 2017).
Industry rules and regulations are followed by the management of PLC structure.
ADVANTAGE
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 Increase in capital- One of the major benefits related with PLC is explained as a system
which is used for increase the work capital. On the other side, this helps management to
gain interest from investors.
 Stock in public- The listing of shareholders results towards completion of work through
attracts individual interest in public listed business. Therefore, this help business to gin
work capital in an easy manner.
DISADVANTAGE
 Rules and Regulations- Large number of individual are interested in public listed
organisation so this is important for management to induce strict rules and regulations
(Bugmann and et. al., 2017). This help management to manage and ensure that
confidential information will not impacted due to engagement of large individuals.
 Delegation of authorities- With provide access to the person this is understand all
shareholders are accountable in company sharing. So sometimes delay in decisions exists
which create barrier for organisation.
CHARITY
The main role of charity organisation is to perform operations for welfare of society and
according to current market scenario, charity function perform an important role to provide
benefits related with monetary factors.
ADVANTAGE
 Improve in goodwill- Charity is identified as one of the most important factor and this
helps to complete function and operations in a proper manner especially, for complete
task according to the society requirements.
DISADVANTAGE
 Delay in process- Sometimes large business or private organisation performs charity
function and operations with motive of marketing and branding the business. Therefore,
organisation takes more time and it results in delay of company process.
For this report, clothing business is selected and it deal with customers through traditional store
and E-commerce platform both (Du and et. al., 2018). So the selected organisation structure is
limited business and this is because it aids management to perform work with the support of
government. Further, the goal of business is to expand their market size so the limited structure
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supports management to perform work with aim of increasing business at various geographical
locations.
B) Source of finance with their strength and weakness related for existing business idea
The main role of clothing business or industry is to complete their work according to the
current trends and market requirements. A large number of individuals are engaged in the
company operations because the idea of clothing business start with manufacture of clothes,
marketing of products and identify of market trends. This defines a large or heavy amount of
investment is required for the current business idea. From the perspective of UK clothing
industry, the nature of market and person is too dynamic but it also, have a wider-scope because
of multi-culture factors (Fauzel and Keesoonah, 2017). The main focus of business idea is to
manufacture good quality of clothes as this helps in fulfil of customer demands. The estimated
amount to start business is £150,000 and it is a large amount. So to invest in proper manner
management gain fund from the right finance sources to perform work in proper manner.
BANK LOAN
The bank loan provide large amount of funds against the security and this is one of the most
common and secured way of raise the capital. Commercial banks provide loans to small
industries so this is easy for them to start and complete company operations. From the
perspective of clothing business, bank-loan is more appropriate because this help to complete
work with an appropriate record of monetary transactions.
STRENGTH
Free hand to Company- The role of bank is too provides only monetary amounts to the business.
This refers that decision-making control by the company so this is identified as one an important
perspective as it helps to perform all operations in an appropriate manner and also, with no or
less involvement of third parties.
WEAKNESS
More formalities- Security is required by the bank against the given funds and this generates
problems for organisation to perform business in proper manner (Irvine, 2015). From the
perspective of current commercial banks documentation and deposit of security such as land,
property, etc. generate problems to gain fund from banks.
RETAINED EARNING- One of the current market scenario, consider towards maximise
current profits of business. This is easy to understand that retained earnings helps for enhance the
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market size through ensure company profits. Moreover, an organisation decide that all methods
related with business helps in completion of work with save amounts as this is less risky to
invest.
STRENGTH
Secured Earning- The safe and secured earning is controlled by organisation and this is more
appropriate because this is totally control and managed through implement company systems. In
the context of clothing industry retained earnings is considered as safe amount of investment.
This is because it helps to manage and control operations with the save earning.
WEAKNESS
Limited amount of investment- The amount which is ensures by organisation is too small (Kim,
2016). This is because large number of individual are interested in company operations and
functions and also various operations performed by the business due to which number of
expenses is more. With compare it profits this is understand that a retained earning amount is
less to perform company operation.
EQUITY CAPITAL
One of the most effective methods to raise fund is to register or list the organisation in the stock
market. This is important for organisation to funds from the investors as this helps organisation
to gain required amount of capital in an easy manner.
STRENGTH
Large amount of finance- Equity capital is a secured manner to raise the funds in terms of time-
period. It refers that equity capital helps management to hold monetary amount for a longer
period through offering the ownership stake to investor.
WEAKNESS
Problem to return funds- The purpose of each investor is to enhance their funds but sometimes
this is complex to return the amount due to pandemic conditions. This generate problem for
management for perform their work in proper manner because of engagement of different
individuals.
Question
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Business Economy of UK and different sector
The previous information and data consider that economy of overall world is impacted
and this is because of current pandemic conditions. According to the current market scenario,
GDP of both developing and developed countries is reducing because of strict government rules
and regulations to control the pandemic conditions (Lyubareva, Benghozi and Fidele, 2014). In
context of UK, each industry including clothing sector is well-developed so this helps new and
small business to manage work with engage in right sector. Some of them are mention as follow:
PRIMARY SECTOR- The role of primary sector is to formulate or manufacture the products.
This is important for each country to boost the primary sector in country because it helps to
improve the number of raw-materials and their use to produce good quality of products. Or on
the other hand it will in general be the use of non-endless resources, for instance, oil extraction,
burrowing for normal sources. During the 1920s, estimated in excess of 1,000,000 people were
used in the UK different industry. It\'s everything except a crucial piece of the economy. In any
case, further developed advancement and the improvement of other resources have creates a
constant process for raising reduction in this fundamental region industry. In simple words
essential materials are those which are straightforwardly utilized by the association.
SECONDARY SECTOR- The collecting business takes unrefined materials and goes along with
them to convey a higher worth added finished thing. For example, use sheep furry can be gone to
outline an unrivalled quality fleece garments. This downy would then have the option to be hung
and weaved to make a jumper that can be worn. From the outset, the gathering business relied
upon work concentrated house industry for instance hand turning. In any case, the headway of
further developed advancement, such as turning machines, engaged the improvement of greater
creation lines (Martín-Ugedo and Minguez-Vera, 2014). Benefitting with economies of scale,
they had the alternative to diminish the cost of creation and addition work effectiveness.
Optional area acquires support from the machines and they are utilized to improve items rather to
utilize straightforwardly.
TERTIARY SECTOR- The assistance region is stressed over the hypothetical piece of offering
organizations to buyers and business. It incorporates retail of manufactured items. It is like
manner offers that manage various kinds of help, similar to security and banking. In the
twentieth century, the help region has become in light of further developed work value and
higher additional money. More optional income engages more spending on extravagance
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organization things, similar to the movement business and restaurants. According to the
viewpoint of Fit Food it is distinguished that they are occupied with an area for play out their
work in appropriate way.
Difference between all the three sectors
Basis Primary Secondary Tertiary
Foundation Agriculture and all
other products that are
developing from raw-
materials is
considered under
primary activities.
With engage of all
those products that are
prepared from human
and machine is
identified as
secondary source.
The intangible service
sector is identified
and consider under
tertiary sector.
Resources Raw material and
direct products are the
main resources of
primary sector such as
milk, cheese, etc.
This helps for make
changes among
products with use of
machines and human.
Services are offered
for both primary and
secondary sector to
manage all work in a
proper manner.
All the three sectors are engaged with crucial factors and this include good quality of
products, monitoring and controlling the work; induce of time-management techniques, etc. UK
economy is developed and also, the current government induce different policies which support
small business organisation to perform and established their organisation in a competitive
market. From the perspective of clothing industry it is understand that secondary sector is
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appropriate because it is related with human and machines (Müller and et. al., 2016). Therefore,
this results in completion of task with more efficiency especially; by engage the individuals in
company work. With offering constant support an entrepreneur manages and by the support of
government this is easy to complete all work according to decided rules and regulations.
Primary, secondary and Tertiary sector all supports clothing organisation in direct and in-direct
manner to complete work with motive of managing business properly. Like, primary activities
help to gather the raw-materials and secondary sector activities is useful in converting of raw-
materials and tertiary sector provide services such as supply of human-resources to complete the
process. So this define all sectors are useful as they support the management in completion of
their work according to current economic conditions.
Question
Human-Resource policies with their importance at the workplace
The current UK government provide and generate different policies and this helps to
manage policies with motive of completing work in a proper manner specifically, with consider
the local region of country. With protect the rights of Human-resources an organisation provide
guidance to the person for manage work in a proper manner. The current policy for HR defines
about all those perspective that are important to follow:
 Health and Safety Policy- UK rules for manage business considered towards the
completion of task and this helps in completion of work with safe policy. The current
market conditions define that there are various results policies specifically to formulate
safe and positive environment at workplace (Sund and et. al., 2016). Health and safety
policy perform crucial role for ensure the safety of individuals at workplace. In the
context of clothing industry, health and safety policy is designed according to the health
and safety work act, 1974. Guidance, knowledge and training is offered by the
management to the engaged workforce because it help the engaged workforce to
complete their work in a safe and positive manner.
IMPORTANCE- Reduction in cost is identified as one of the most crucial factor that is
accomplished by the organisation through minimising challenges related with business.
The existing business owner understands the importance the healthy work environment
and this reduce workforce stress. This is important for management to maintain the
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healthy work environment and it helps to reduce the unknown affect that impact on the
health of individual. Moreover, with safe plan management identify long-way for reduce
the number of accidents. On the other side, productivity of the work is improved if all
individual feel positive and healthy at workplace. Completion of legal requirement like,
according to industry rules and regulations employee’s welfare and safety is important
for attract and retain capable individuals (Unterhalter, 2014).
 Equality and diversity policy- One of the straight and simple contracts which take
place between employer and employees is to provide safety to the engaged workforce
against the challenges that exists at the workplace such as gender discrimination, race
and colour judgment etc. The policy of equality and diversity is undertakes under
different acts which include the Equal Pay Act, 1970, the Sex Discrimination Act 1975,
the Race Relation Act, 1976. All of them work with motive of challenging the prejudice
and disadvantage that are against the human-rights. This is also used for promote and
enforce equality law to analyse the current basic systems and it reflects to ensure that
work is managed according to human-right policy.
IMPORTANCE- The equality and diversity act was formulated for simplify and
providing the strength to existing business policy (Wu, Gao and Gu, 2015). Britain law
provide the new discrimination law and this helps clothing sector and organisation to
engage employees from different backgrounds. This is already stated that respective
policy stop organisation from generating inequitable environment. But more than that it
also promote equal and fair environment at workplace and it helps management to
maximise the company productivity by treating all engaged workforce in a same manner.
CONCLUSION
According to the above mention report, this is concluded that the overall world conditions
are impacted due to Covid-19 conditions. It also generates different negative results including
reduction in job opportunities and it create unemployment within the country. Further, economic
conditions of country are also impacted because of the Covid-19 so to sustain and improve the
economy of country. UK government induce different plans such as providing financial support
to the business or individuals for maximise the operations and functions of monetary
transactions. HR policy and their importance to generate the positive work environment are also
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learned from this report and it helps in establishment of business in an organised manner
especially by consider health and legal aspects related with business.
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REFERENCES
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