Report: UK Business Law & Legal Context for Business Organisations

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 the role of business laws in establishing legal frameworks for organizations and highlights the dynamic nature of these laws. The report covers various types of business organizations operating in the UK, emphasizing the importance of contract, company, and employment laws. It examines unincorporated organizations like sole proprietorships and partnerships, as well as incorporated organizations, including private and public companies. The report further details the advantages and disadvantages of each business structure, offering insights into their formation, management, and funding. It concludes by recommending a partnership as an ideal business organization for expansion based on its ease of setup and lower financial requirements. Desklib provides access to similar documents and study resources for students.

BSc (Hons) Business Management
BMP4002 Business 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
1

Introduction...............................................................................................................................2
Businesses & Organizations in the UK................................................................................2
The legal business structure of UK companies..................................................................4
Sole Trader...............................................................................................................................5
Partnership...............................................................................................................................5
General Partnership................................................................................................................6
Limited Liability........................................................................................................................6
REFRENCES...........................................................................................................................7
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Introduction
Business laws are the laws that has been used in order to develop various
perspective which helps in making business organization to establish itself according
to legal structure present within country. These laws makes various kinds of
organization operate as per legal guidelines that has been defined within rules and
regulations mentioned in business law. Also the law has wider scope that makes
operations regarding business to be conducted effectively. This makes nature of the
law to be dynamic as they impacts working of business organization. The report is
based upon types of business organization.
Businesses & Organizations in the UK
These are the organizations that has been operating within United Kingdom in
order to conduct various functions that is related to both commercial and corporate
world. Such organizations makes business perspectives to be covered more
effectively making running of business possible (Fenwick, 2016). Business
organizations are used in order to make goals and objectives of business achieved
with more effectiveness. The organization has made business standards, regulations
and legislation developed which helps in making business to be conducted as per
the legal perspective provided within law. Also business organizations of United
Kingdom has various kinds of functions to be performed all over United Kingdom.
Also business organizations makes protection done regarding trade activities which
helps in making legal structure developed of an business organization. In order to
make business organizations operate effectively contract, company and employment
laws are used which makes business environment improved in more effective
manner. In company law various kinds of perspective in relation to business
organization has been developed which makes business organization work with
more effectiveness and makes efficiency developed within it. Under company law
business operations has been handling different perspectives which makes business
organization develop effectiveness in its working. Under the law business operations
has been handled with more effectiveness. These laws has been covered within
Companies Act 2006 making business operations conducted with more
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effectiveness. The act has been majorly focused upon memorandum and article of
association that is required to be made by an organization. In this duties related over
directors is explained that has been followed by directors appointed for running
business. Then comes contract law which is related upon agreements that has been
made within two or more then two parties in relation business activities or individual's
interest of business. The laws has been made through different kinds of perspectives
making an agreement become contract law. In this contract or agreement formed
can be expressed of implied which means that an agreement can be written and
unwritten (Hamad, Elbeltagi and El‐Gohary, 2018). It makes promise to be an
contract and contract has various kinds of elements involved by making it legal in
nature. These elements are offer, acceptance, obligation, legality and validity that
makes contract be more valid in nature. An offer means idea that has been
presented by parties to another party, second element is based upon acceptance
within which offer presented is accepted by another party. Then comes third element
that is obligation related upon rules and regulations that has been accepted by
parties with proper discussion done in relation to it. Fourth element related to legality
making laws and legislation formed in relation to legal contracts making contract
formed legally. Then comes fifth element based upon validity in this legal perspective
related to law has been covered making laws legal in the eyes of law. Employment
laws are the laws that is made for protecting employees from any kind of problem
that has been faced by employees while working within an organization. The law has
been focused upon making employer and employee relation more strong in nature
developing tripartite relationship. Employment law also deals with aspects making
business organization perform employees more effectively. There are various kinds
of legislations used in order to solve issues that is related to employment
perspective they are Employment rights act 1996, Minimum Wages act 1986 and
Equality act 2010.These organizations are known as those business enterprises
which is related upon various kinds entities that are engaged within commercial,
industrial, or professional activities. Thus business organization perform various
operations within an country like United Kingdom. It makes business organizations
operates more effectively making business law applied over business more
effectively.
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The legal business structure of UK companies
In the legal structure of business organization within United Kingdom various
kinds of organization has been covered within that has made legal structure
developed more effectively. Also the legal structure included two main types of
businesses which are incorporated and unincorporated organization. In
unincorporated organization means those organizations that has been formed by
removing complexity within the business process, These organizations are
commonly used for making set up of business process done in more effective
manner. The organization that has been covered within it are sole proprietor and
partnership. In incorporated organization based over complex process that has been
used for making its formation done. Under the organization both public and private
organization has been covered effectively. In this private organization and public
organization is covered. Private organization: the organization is based upon
various kinds of documents collected by an organization and its members which is
submitted within Companies House wit detail information. The organization has been
managed by the directors themselves making business arrange funds with the help
of loans and debentures from the bank (Heminway, 2016). Public organization:
These organizations has been using Public Limited within the end of its name and
also sells its share within market to public. In this various aspects has been covered
that is related upon making organization attain stability with goals and objectives.
Under it various kinds of documents like digital structure of owner, memorandum of
association and important document required to be collected. In public limited
companies two and more then two directors with company secretariat is required.
Public limited organization requires to make various aspects in relation to society
welfare is done. Management is done by the owners and stakeholders of business
organization and funds are arranged through government institutions, health
programs, community services, restoration programs, public service programs, and
even environmental programs
Sole Trader
They are considered as the organizations which has been used most
commonly to execute business. Under such organizations only single owner exists
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and holds responsibility of business activities. The owner of business is termed as
sole proprietor. In this single owner is responsible over act and conduct.. In this only
INHRC number is required to be generated for registration and name is used only to
start the business. Management of these organization is done by the owners
hismself and is responsible for all activities within business. Funding of such
organization is done by family members and friends. Advantages and disadvantages
has been explained as follows: Advantages These organization makes profit earned
kept by the owner which makes profit generation more strong. Formation process is
very easy which makes less time consumed for its establishment. Disadvantage At
time funds is not been arranged which makes business organization close. These
organization can face heavy loss as all activities is handled by one person.
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 organizations
were formed with the primary goal of making money from business conducted under
the umbrella of a corporation(Katsos and AlKafaji, 2019). The company's profit and
loss are split among a number of partners. For a partnership, it also enjoys a tax
benefit . 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. Advantages: The process of 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's drawbacks include:
The accomplice's liability is restricted. 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
These businesses are founded by two people who came together with the
same goal in mind: to make money. This covers all aspects of such a business,
including risks, expenses, benefits, and responsibility for the organization's
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operations. There are two sorts of partnerships: general and limited. The sole
requirement for registration is an INHRC number. Firm for forming a partnership:
These organizations are run by partners, and they are the only ones who do the
work. Personal investments by partners are used to provide funding. Its benefits and
drawbacks have been outlined as follows: Advantages: There are fewer legal duties
and the process is less formal. This is a load that is shared by both partners.
Disadvantage: There is no legal status for the group. Because only partners
arrange for capital, there is limited access to it. These are some of the benefits and
drawbacks of the general kind of partnership, which is based on elements connected
to general partnerships.
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
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
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The notion of business and its establishment has been described in the preceding
file, which explains the formation, management, and finance of an organisation. 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.
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
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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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