BSc Business Law (BMP4002): UK Legal Context for Organizations

This report provides an overview of the legal landscape for businesses in the UK, focusing on key sources of law and various legal business structures. It examines sole proprietorships, partnerships (general and limited liability), and limited companies, detailing the advantages and disadvantages of each. The report also discusses liabilities, duties, and relevant laws impacting businesses, such as employment laws, formation laws, and intellectual property rights. Recommendations are provided for IOM Solutions, suggesting a partnership structure. The analysis is based on secondary data from journals and other sources, emphasizing the importance of business law in maintaining positive employee relations, resolving conflicts, and ensuring transparency. The report concludes by highlighting the critical role of legal compliance in fostering a stable and productive business environment.

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

Table of Contents
INTRDUCTION..............................................................................................................................3
TASK...............................................................................................................................................3
Business and organizations in the UK.............................................................................................3
The legal business structure of UK companies................................................................................4
Sole trader........................................................................................................................................4
Partnership.......................................................................................................................................5
General Partnership.........................................................................................................................7
Limited liability...............................................................................................................................7
Recommendations for IOM Solutions.............................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRDUCTION
Business law basically refer to legal act, framework and which is initiated by the
government of all countries for reducing the misconduct activities by employees within
organization at maximum level. But the main motive for utilizing this act by various organization
is to dealing commercial matters, maintaining discipline in organization, resolving conflicts
between employee and employer etc. This report will cover the legal business structure of UK
companies which includes sole trader, partnership, general partnership and limited company,
business and organizations in UK. In this report various types of liabilities, duties and laws are
also explained in proper manner. This report is prepared on the basis of analysing secondary data
which includes journals, newspapers and from other sources. It means laws are very important
for maintaining positive relation between all levels of employees which includes top, middle and
lower level management. Due to maintaining effective relationship between all employee’s
conflicts are also reduced in higher rate.
TASK
Business and organizations in the UK
Business basically refer to managing the activities of whole organizations in legal way
which is essential for facilitating best quality product to customers in long time. With help of
effective business law management easily maintain their transparency in their activities between
public effectively. With help of using effective laws of government by various organizations
their revenue is easily enhanced without facing any type of difficulty (Fairchild, and et. al.,
2018). The various types of laws which is used by companies are employment laws, formation
laws, intellectual property and others. Due to implementing all these laws by government the
security and safety of employees regarding their job are highly increased which is essential for
live their life decently. In business safe transaction of money between multiple users are also
important for maintaining the trust of the employees and customers. Due to this reason all types
of organization are using the business transaction management process.
The main advantage of using this process by management is to managing list and records
of their clients, sale of their product legally in their system which comes under the category of
proof. Different types of liabilities which are managed by various organizations in systematic
manner are firstly, business liability which is basically refer to personal liability and it is directly

generated by the company owners. In this liability the growth of the company is increased in fast
manner and their functions are also run smoothly (Kubacki, Szablewska and Kennedy,
2019). Secondly, Vicarious liability, it defined as secondary liability and in this method various
subordinates and agencies are involved for fulfilling the liabilities of company easily. But the
basic definition of liabilities are responsibilities and roles which is effectively distributed by top
level to categories of employees effectively. Therefore, for dividing the responsibilities
effectively business laws play major role in all type of organizations.
The act has been made upon making certain things compulsory like forming of
memorandum of association and article of association mandatory for an organization to be
formed. This makes business to be formed upon developing legal structure within United
Kingdom. For example, VB Ltd should be able to make incorporation done and in order to make
this possible Companies Act 2006 should be followed for maintaining legal stricture. Other law
which has been used are contract law making agreement formed in more effective way making
two or more than two peons involved within agreement formed. It is understood with the help of
example that is VB Ltd makes an agreement formed which leads upon making contract crated by
using contract laws. Thus business organization perform various operations within a country like
United Kingdom. It makes business organizations operates more effectively making business law
applied over business more effectively.
The legal business structure of UK companies
Sole trader
It is basically referring to controlling the whole activities of business and employees by
the individual person in the form of singe ownership. In this structure coordination are made
effectively between upper and lower level employees for long time. The sloe trader is established
by the individual person in the form of start-up with small business in convenient location. The
other highlight of this structure is that very low formalities and paper work are required for
running the business. But in this structure specific license or certificate are mandatory for sell
their product to customers. In this organization structure the tax are directly deducted from the
income and profit of the company owner in their business. Here liabilities refer responsibilities
and roles which is fully handled by the individual person. When the individual person handles all

employees then definitely the performance of lower level employees is highly increased in short
duration.
Advantages
 In this structure single person easily start their without facing any type of government
interference because here all powers are coming in the single hand.
 The other advantage is that registration of business are completed in fast manner because
in this structure legal formalities are very less.
 Due to individualism functions of the business are run in fast mode which leads to
increase the productivity and work efficiency of employees in short period.
Disadvantages
 The first disadvantage is that in this structure individual have unlimited liability in the
form of power which creates negative effect in the minds of employees in various
aspects. It includes work pressure, stress, poor time management and others and due to
this the performance of employees are effectively decreased in their job.
 Due to achieving unlimited power the relationship with lower level employees are
positively maintained for long time (Phillips and Moutinho, 2018). Because in this
stage orders are directly send by the top level authority to employees in strict manner.
Partnership
Partnership refers to written or legal contract which is developed by with help of many
individual. In the structure of partnership intermediaries involved in large number such as
subordinates managers and others. The partnership is formed legally and in written format with
help of documents. Due to using this document job role are clearly mentioned to all business
partners. Due to written agreement liabilities are effectively distributed and risk are highly
reduced in their business activities effectively. The other name of this agreement is to limited
liability partnership. In this structure also tax is deducted from the business partners individually
according to their market share and profit. Because without paying tax in time they are not able

to survive in market and also not able to run their functions smoothly. In this structure liabilities
of partners are distributed in legal manner which is essential for organization for run their
departmental activities smoothly. In this contract various rules and regulations are clearly
mentioned in document which is essential for maintain the effective division of liabilities
between business partners in long term. It also helps to reduce the legal risk in activities of
business effectively.
Advantages -
 Due to the use of written agreement rules, regulations and safety standards are effectively
implemented within organization by the business partners (Shanahan and Hopkins,
2019). It is highly essential for employees for maintaining proper coordination between
all departments to run their functions systematically.
 With help of written agreement illegal and misconduct activities are easily decreased by
the employees. In this way legal norms and brand image of the firm are managed
effectively between public for long term.
Disadvantages –
 The first disadvantage is that due to following various government rules and regulations
business partners are not able to put pressure on employees for conducting any type of
misconduct activity.
 The other disadvantage is that due to written agreement it is mandatory for organization
that they always monitor the performance of employees. According to the written
agreement it is also mandatory for management that they must facilitate effective
financial support to all categories of employees according to their performance in long
term.
General Partnership
It basically refers to unwritten or oral agreement type of business and in this structure
group of people are involved. In this business mostly mostly run by the members of the family
and in this type of business decisions are made according to opinions of family members. The
general partnership is established through oral contract with family members and group of

individuals (Surdam, 2020). It means no legal agreement is required for run the activities of
business. In this organization structure tax are directly reduced from the profit of each partner
individually in their business on monthly basis. Due to the involvement of more than one or two
partner’s liabilities are distributed in the form of duties and role to all employees in business. In
this structure the final decisions are made by the opinions of all business partners.
Advantages -
 Due to having contract in general partnership the works and responsibilities are
distributed to every workers according to their ability and potentiality. In this way
flexibility are highly increased in the minds of employee for finishing the work in time.
 In this structure partners are easily developed in short time because in this type of
business the ultimate aim of partners is to increase their profit in long term.
Disadvantages -
 Due to following oral agreement relationship are not effectively maintained long term
with government legally. Because in this type of contract regulations are not sincerely by
organization according to the government which creates negative impact on their
productivity.
 The other disadvantage in this structure is that employees get low safety for their salaries
in their job. In this structure company put high pressure on their workers for doing their
effectively. But due to facing this workload worker are not able to finish the task in time
and then in this way their salaries are also decreased.
Limited liability
These means liability which has been used by partners making partners come together
according to interest within business. As per this business all work has been handled according to
investment made. It has advantage that profit generation is easy and disadvantage is partners fails
to makes investment leads upon making business collapse. It also refers to business activities are
run by multiple partners because in this type of structure functions of organizations are run in
global manner. Due to run their activities at international level the popularity of their brand
image are highly increased between public. In this structure the tax is deducted in less amount

from their market share and profit. The other important fact is that in this structure outside
members are mostly involved for run the business at large scale (Coruzzi, 2020). Due to well
established infrastructure and talented workforce the liabilities are effectively distributed
between partners and all levels of employees in various locations.
Advantages –
 Firstly, due to wide range of operational and service activities positive reputation of
organization are sustained for long time in market and between public.
 Due to well established infrastructure their services are delivered to customers in time
which leads to decrease the interference of government in their activities at higher rate.
Disadvantages –
 When organization run their activities globally, then management faced lot of problem to
manage the demand and supply of products in various locations. Due to global activities
the coordination between all levels and with customers are not effectively maintained.
 Due to maintaining wide range of activities by the management sometimes lower level
employees did not received accurate and reliable information’s from senior officers. Then
due to this productivity of workers get decreased.
Recommendations for IOM Solutions
After the analysis of above information partnership structure is suggested to IOM solution
because in this structure role and responsibilities are clearly defined to all employees. The most
important highlight of this structure is that it is a written agreement which comes under the
category of legal format. With help of this agreement the illegal activities are highly decreased
by all categories of employees within organization.

CONCLUSION
From the analysis of above information, it is concluded that business laws play crucial role
for run the business smoothly and in systematic way. With help of using effective business law
brand image of the organization are also sustained in market between customers for long
durations. In this way communication between consumers and employees are developed
effectively.

REFERENCES
Books and Journals
Buchheit, L.C., 2019. Ethical considerations in the representation of sovereign clients. In
Research Handbook on Law and Ethics in Banking and Finance. Edward Elgar
Publishing.
Burri, T., 2021. The New Regulation of the European Union on Artificial Intelligence: Fuzzy
Ethics Diffuse into Domestic Law and Sideline International Law. Available at SSRN
3865149.
Conrad, C.A., 2018. Ethics in Business Education. In Business Ethics-A Philosophical and
Behavioral Approach (pp. 327-337). Springer, Cham.
Courcelles, D., 2019. The Ethics of the Merchant in the Islamic Faith: From Ibn Khaldoun to
Islamic Finance.
Dickinson, A.L., 2017. Recent Ethics Opinions of Significance. J. Legal Prof., 42, p.291.
Fairchild, and et. al., 2018. 14. Health Justice. In Public Health Law and Ethics (pp. 587-612).
University of California Press.
Kubacki, K., Szablewska, N. and Kennedy, A.M., 2019. Guest editorial: Social good and ethics
in social marketing for wicked problems. Journal of Social Marketing, 9(4), pp.485-
489.
Phillips, P. and Moutinho, L., 2018. Business ethics. In Contemporary Issues in Strategic
Management (pp. 178-194). Routledge
Shanahan, K.J. and Hopkins, C.D., 2019. Level of agreement between sales managers and
salespeople on the need for internal virtue ethics and a direct path from satisfaction with
manager to turnover intent. Journal of Business Ethics, 159(3), pp.837-848.
Surdam, D.G., 2020. Examples of Mid-Nineteenth-Century Business Ethics in America. In
Business Ethics from the 19th Century to Today (pp. 71-99). Palgrave Macmillan,
Cham
Workman-Stark, A., 2020. Inclusion starts with “I”? The missing ingredient in leading change:
the case of the Royal Canadian Mounted Police (RCMP). Development and Learning in
Organizations: An International Journal.
Coruzzi, C.A., 2020. Leading Change With Intelligence: The Power of Diagnosis in Creating
Organizational Renewal. The Journal of Applied Behavioral Science, 56(4), pp.420-436.

Charteris, J., Smardon, D. and Kemmis, S., 2021. Leadership in the built spaces of innovative
learning environments: leading change in people and practices in the perfectly self-
managing society. Studies in Continuing Education, pp.1-20.
Imig, D., 2018. Leading Change in Teacher Education: Lessons From Countries and Education
Leaders Around the Globe.
Upchurch, E.B., 2020. 23 Leading Change. Management and Leadership Skills for Medical
Faculty and Healthcare Executives: A Practical Handbook, p.219.
Grice, C., 2021. Leading forward by salvaging for the future. Future Alternatives for Educational
Leadership: Diversity, Inclusion, Equity and Democracy.