Business Law: UK Business Organizations, Structure, and Liabilities

This report provides a comprehensive overview of business law in the UK, focusing on different types of business organizations, including sole proprietorships, general partnerships, partnerships, and limited liability companies. It examines the advantages and disadvantages of each structure, highlighting liabilities and legal considerations. The report also discusses the role of government policies and regulations in maintaining discipline and resolving commercial disputes. It concludes with a recommendation for IOM solutions, suggesting that partnership is an effective business structure for smooth management and legal compliance. This document is available on Desklib, a platform offering a wide range of study tools for students.

Business Law

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Business organizations in UK.....................................................................................................3
The different types of business structure of UK companies.......................................................4
Sole proprietorship - ..............................................................................................................4
General partnership -..............................................................................................................5
Partnership - ...........................................................................................................................6
Limited liability company -....................................................................................................7
Recommendation for IOM solutions...........................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business law refers to legal act or the strategies which is initiated by the state or the
central government for running the organisational activities in legally. The main motive for
implementing this act by the government is to maintain discipline of all categories of employees
with in organization and facilitate good services to the customers. Governmental laws and
policies are also essential for any organization to resolving disputes and dealing commercial
matters effectively. This report will be prepared on the basis of describing various types of laws
duties and liabilities with in the organisation (Blazo and Patakyova, 2019). Due to using these
elements jobs of the employees are easily secured for long time in any organization. This report
will also covered the different types of legal organization structure which includes partnership,
general partnership, sole proprietorship and limited liability company. Therefore acts or laws
played important role for developing effective relations between lower, top and middle level
management easily.
TASK
Business organizations in UK
Business means the effective management which are responsible for managing the whole
employees and operational activities of organization in systematic manner. Due to the use of
laws fairness and transparency regarding service are easily displayed towards customers (Chen
and Soltes, 2018). Effective fairness helped the organization to increase their revenue rate in long
run easily. The various types of policies which are in initiated by government in various
organizations are intellectual property law, employment law, formation law and so on. All these
types of acts and laws are essential for providing safety to the employees in their job for long
period. Business transaction refers to the online method where more than one transaction are
made by consumers at the time of availing product or services. For displaying transaction legally
in their business or in front of government management used various equipments for saving their
transaction records as a proof. The report is consist of various types of liabilities which is used
by organization for enhancing their work efficiency easily. Firstly, Business liability means the
company's personal liability which is enhanced legally by the owners of organization. Due to this
their company's growth are easily increased in long run. Secondly, Vicarious liability means
alternative or secondary liability which is reacted by different subordinates and agencies.

Therefore in liabilities responsibilities and responsibilities are distributed into various level of
employees for run their services smoothly.
The different types of business structure of UK companies
Sole proprietorship -
It refers to management of whole employees and operational activities of company by the
single ownership and it is the simplest type of business structure. In this structure coordination
are effectively maintained between the owner and other employees.
The sole proprietorship founded by individual himself as a new start-up in profitable
location (Dar, 2018). In this structure very low amount of legal formalities are faced by owner
for establishing new business. Before establishing new business it is mandatory for single owner
that they must issue the specific licence or certificate to run their functions smoothly.
In this type of organization the tax are deducted from the income, profit and business
expenses of single owner.
Due to structure of sole proprietorship the responsibilities and roles of employees are
fully monitored and controlled by the single ownership. It means that unlimited liabilities are
achieved by single owner for run their functions smoothly.
Advantages -
 In individualism the decisions are made in fast manner for completing the task in time. In
this structure employees easily received the accurate and meaning information from
owners which leads to enhance their productivity in long run.
 In single ownership communication are easily maintain with employees which leads to
enhance the portfolio of organization effectively for long time.
Disadvantages -
 Due to having unlimited power by single ownership negative thoughts are easily spread
in the minds of lower level employees. It means that due to unlimited liability owner put
high stress on workers to complete their task in time which is possible for every
employees.
 In this structure the positive relations are not maintained effectively for longer period.
The reason for bad relation with senior in this structure is that the strict orders are come
from owners which is not acceptable by lower level employees .

General partnership -
It refers to the formal agreement which is based on group of individuals in the business.
This type of structure are highly followed by members of family or the reliable peoples. The
other important fact is that in this structure written agreement is not essential for running their
business.
The general partnership is establishes with the help of group of reliable and trustworthy
individuals (Dymitrowski, 2020). Therefore no legal barriers are there for running their business
and these types of organizations are not directly connected with government.
In general partnership tax are negotiated from profit of each business partners
individually on yearly or monthly basis.
In this type of organization liabilities are separated in top two or more persons and
business partners. Due to distribution of powers decisions are made in very low time which leads
to decrease the productivity of employees.
Advantages -
 In this structure communications are made in between employees in friendly manner
which is helpful for enhancing their potentiality in their job. Due to this mind of their
employees get relaxed and trust are maintained between workers for long time.
 Due to formal agreement partners are easily developed in this structure for long time. The
main motive of creating this type of group is to enhance the profit of firm in long time.
Disadvantages -
 In unwritten agreement relations between the partners are easily damaged with low time.
Because in this structure legal regulations and norms are not directly connected with the
government. Due to this they fix the wages of employees according their own conditions
which create negative impact on company productivity.
 In this structure the flexibly of workers are highly decreased regarding their job because
for organization profit is the ultimate purpose. For increasing their profit management
increased the employee targets which is not good for their mental and physical health.

Partnership -
It refers to the written contract or agreement with the help of one or more people. In this
level involvement of subordinates and managers are highly increased between the company
owners and lower level employees.
Partnership are established from using legal written document by the group of those
individuals which are come from outside (Graham, 2018). It is helpful for run the operational
and departmental functions of organization smoothly. The other name of this type of contract is
to limited liability partnership.
In this stage the process of tax collection is same which are mentioned above in general
partnership. It means that here also tax are given by business partners individually according to
their profit.
In this type of organization responsibilities are distributed in the form of liabilities
between business partners. In this contract liabilities are divided legally according to the different
levels of employees and it is directly connected with rules of the government.
Advantages -
 Due to systematic use of agreement within organization by the individual partners
discipline of the lower level employees are maintained effectively for long time. It is
helpful for facilitating best quality products to customers in time.
 In this organization miscommunication and misunderstanding between employees in
workplace are highly decreased. It leads to increase their work efficiency and interest
regarding their job in long run.
Disadvantages -
 Decision making process by the top level management for employees is very slow in this
structure (Paul, 2019). Due to this employees did not receive reliable data in time for
completing the task in time. Wrong information are also responsible for decreasing the
brand image in higher rate in front of consumer.
 Due to interference of managers and subordinates employees are not able to connect
directly with company owners easily. Due to this the problems of the workers regarding
their job are not shared with top level management in time. In this way their work
efficiency are easily decreased.

Limited liability company -
Limited liability is the advanced structure of any organization for running their business
activities in global level. In this structure duties and responsibilities are divided into different
departmental levels. It means when the liabilities are systematically divided then, the risk are
also reduced in business activities at international level (Gullifer and Tirado, 2018). It leads to
increase the profit of organization in higher rate.
This structure was established in broad manner by the use of their members, address and
name of company. It means that for expanding the different types of strategies are used by top
level management which includes developing product awareness in the market through online
portals and advertisement.
In limited liability tax are reduced from the investment of the organization which are
made by organization in large level. The main purpose of making this type huge investment by
firm is to facilitate unique services and products which is totally different from other brand.
In this type of organizations liabilities are distributed in global manner for running their
functions effectively (Oomenv and Baumgärtel, 2018). Liabilities basically refers to the
responsibilities and roles which is a highly essential part for each and every employee within
organization. Due their wide range of activities their workforce are also divided according to that
for delivering their services and product to customers in time.
Advantages -
 due to having wide range of organization activities did not need any type of more
document work in their business. Because this type of organization already have high
brand awareness between the customers. For maintaining popularity between their clients
it is essential for management that they must always facilitate durable products to
customers in any situation.
 In this structure flexibility are highly considered by the organization for maintaining the
employee productivity consistently in long time. When the flexibility are maintained by
management then, good relationship are also maintained by the employees for long
period. With help of effective relation employees honestly put their full effort in their
work for achieving organizational vision, mission and objectives in short time.

Disadvantages -
 In comparison with other structures coordination are not effectively maintained between
top, middle and lower level employees. Because due to global range of functions
employees faced lot of pressure in their job due to their senior subordinates. It highly
creates negative impact in the minds of workers to organization. Due to heavy stress
employees are not able to understand their work conceptually.
 One of the biggest disadvantages of having limited liability is there are high chances of
changing in the business policies. (Henderson and Raskin, 2019). But some times these
type of policies not favourable for consumers which create negative impact on consumers
mind. It leads to decrease the sale of the product in high rate.
Recommendation for IOM solutions
From the analysis of above information it is concluded that partnership is a effective
business structure for management to run their activities smoothly. Because in this structure
powers are distributed effectively to all department of employees. Due the distribution flexibility
in time and work are easily maintained for long time. In this structure communications are
maintained systematically and legally for long time. The main advantage of this structure is to
written agreement are made for reducing illegal activities in organization by the employees. Due
to involvement of managers and subordinates performance of employees are monitored
effectively on monthly and daily basis. In this way skills and talents of the employees are
affectively utilized for achieving organization success regularly.

CONCLUSION
After the evaluation of above information it is understand that business law played the
major role for run the departmental functions smoothly in legal way. When company follow the
various norms and regulations in proper manner then revenue are easily increased with help of
their product. Effective business law also helped to increase the transparency and fairness of
their services towards the customers and employees. It leads to enhance their brand reputation in
market easily.

REFERENCES
Books and Journals
Blazo, O. and Patakyova, M. T., 2019. International Responsibility of Business for Violation of
Human Rights-Customers' Perspective. Bialstockie Studia Prawnicze, 24, p.101.
Chen, H. and Soltes, E., 2018. Why compliance programs fail—and how to fix them. Harvard
Business Review, 96(2), pp.115-125.
Dar, A. A., 2018. Cloud Computing-Positive Impacts and Challenges in Business
Perspective. Journal of Computer Science & Systems Biology, 12(1), pp.15-18.
Dymitrowski, A., 2020. Investigations on business model innovation and company’s
development. Ekonomia i Prawo. Economics and Law, 19(2), pp.233-247.
Graham, L. P., 2018. Generation Z goes to law school: Teaching and reaching law students in the
post-Millennial generation. UALR L. Rev., 41, p.29.
Gullifer, L. and Tirado, I., 2018. A global tug of war: A topography of micro-business
financing. Law & Contemp. Probs., 81, p.109.
Henderson, M. T. and Raskin, M., 2019. A regulatory classification of digital assets: toward an
operational Howey test for cryptocurrencies, ICOs, and other digital assets. Colum. Bus.
L. Rev., p.443.
Oomen, B. and Baumgärtel, M., 2018. Frontier cities: The rise of local authorities as an
opportunity for international human rights law. European Journal of International
Law, 29(2), pp.607-630.
Paul, S., 2019. Fissuring and the firm exemption. Law & Contemp. Probs., 82, p.65.
Zetzsche, D. and Preiner, C., 2018. Cross-border crowdfunding: Towards a single crowdlending
and crowdinvesting market for Europe. European Business Organization Law
Review, 19(2), pp.217-251.
Zimmerman, S. D., 2019. Elite colleges and upward mobility to top jobs and top
incomes. American Economic Review, 109(1), pp.1-47.