BMP4002: UK Business Law - Legal Structures and Key Law Sources

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 such as sole traders, general partnerships, partnerships, and limited liability companies. It examines the advantages and disadvantages of each structure, considering factors like administrative burden, financial management, personal liability, and taxation. The report also includes recommendations for IOM Solutions, a sole trader business, suggesting a possible transition to a limited liability company to facilitate expansion and provide a separate legal entity with perpetual succession. The analysis draws upon relevant legal principles and company law to provide a comprehensive understanding of the legal landscape for businesses operating in the UK.

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
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Table of Contents
Introduction ...............................................................................................................................3
Businesses & Organisations in the UK...................................................................................3
The legal business structure of UK companies......................................................................4
Sole Trader.............................................................................................................................4
General Partnership...............................................................................................................5
Partnership............................................................................................................................6
Limited Liability......................................................................................................................6
Recommendations for IOM Solutions...................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................8
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Introduction
Business is the method through which the companies manages to generate the
production and also to enhance the growth and the profitability in the general areas and
sector. This is all the commercial activities which are being undertaken for generating profit
and also for regulating the working to be managed. For attaining and maintaining the proper
function of the company there is been seen that all the legal applicability are served to be
important and are required to ambit and frame all legislation. As there is been seen that so
many laws are being given which are being required in order to manage and regulate all the
business practices they are like the company law, contract law, employment law and many
more (Wake, 2022). In this report their will be provided a report on all the IOM solutions
which considers to manage all the electrical parts. Through this report their will be managed
to make the discussion about the various types of business organization.
Businesses & Organisations in the UK
In order to frame and manage the business there is been seen that their restructuring
and the reorganizing are implicitly being required to be managed. As for managing the
reorganization of all such business practices IOM solutions can incorporate and expand their
business functions through different mediums and methods. In UK it is been seen that
companies Act 2006 complies to manage the employment law, contract law in maintaining
the nature and the working of the company. As through the employment law there is been
seen that it serves out to provide the rights and the responsibilities to the employees and also
protect them from any kind of discrimination in the workplace. All the organization can be be
made liable in all such cases where they maintain the erroneous deals and in all the failure of
the performance and the task (Arthur, Agyemang, and Nikoi, 2022). In the companies there
working contemplation is managed by the Directors as they are wholly stands out to take all
the care and the liabilities with the general responsibilities and the conduction of duties and
work. They will have to attain and manage the timely analysis. Their is been seen that the
shareholders and also the authorized directors can be made liable for all the issues in the
company. Their are certain more partnership firms thorough which all the partners
contemplates and manage the work together. It have the memorandum of Associations which
is required to be signed by all the shareholders while managing and incorporating the
business and the other is Article of Association through which the written statement is being
aligned and made. All such are important regulations through which the business and their
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managerial operations are being complied. And this maintain the laws and the legal
applicability to be adjoined with the further working.
The legal business structure of UK companies
A business can there by being enhanced by mitigating different types of factors which
are being available in it they are like the administrative working, financial management,
personal liability, taxation amounts and many more. As all the business will have their own
advantages and the disadvantages through which their assistance is being observed. As Sam
in the recent time is engaged in the Sole trader business practices for managing the garage
and in order to make the further expansion there are availability of so many options of
business been given to them. Other then the sole traders there are so many options available
for reorganizing the working(Kim, and Hong, 2022).
Sole Trader
Sole proprietor is managed to be one of the normal and the most easy forming
business practice in which a single person can with their own saving and investment manage
to start a business practice. In order to formulate and manage all such working of the sole
business their will not be required any kind of issues in their management, incorporation and
the profitability as all are being dependent on the owner itself. It manage the full control
being made by the individual itself and there is been seen that all the decision making and the
profit earning are managed by the owner itself.
Advantages:
 All the sole trader business are easily being operated as there is no consideration of
the plethora of decisions. Their will not be required to manage the approval or the
meeting to be managed by any person(Sarkar, and Sheth, 2022) .
 Privacy in all such business is been made as all such working are unregistered form
from the entity and their is been seen that no database is been managed by the
government. So all such business manage to keep the privacy as their personal details
are not been circulated in any areas. The establishment of all such bsui9ness is a simple process as their will not be any
kind of specific requirements for the registration is being made and they can initiate
and stare the business practice without any kind of registration.
Disadvantages:
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 Their is been seen that it embarks to have difficulty in managing and obtaining the
funds for the business interest as their existence is not adequate and the banks and
company are scared to invest in it.
 As it is been seen that due to the single or the sole person is managing and
considering all the sole management and working their implies that they carry the
unlimited liability through which their seems difficulty in managing and attaining the
business working(Zarubaev, and et. al., 2022) .
 All the material charge and the basic adherence in the business are being regulated in
it and there is been seen that it somehow affects and make the work being more
difficult for the sole owner to manage.
General Partnership
It involves two or more people when agrees in order to mutually share all the common
liabilities, profit, loss and the other decision making practices in order to manage the business
equally. In UK all such business practices are majorly been seen to be effective one and all
the affairs and the crucial decision making is being attained through the capacity of the co-
workers.
Advantages:
 All such partnership firms are mainly easy to be managed and create as all the major
business entity as it incorporates through all the easy methods and the ways for
creating and attaining the simple formation.
 Their can be seen that the investment can be made through all the easy flow of income
as all the partners can invest in the business by their work and the generation and the
investment can be made on immediate cash flow which is a merit for the company. In general partnership there is been seen that the flexibility is been given in order to
negotiate and manage the profit, loss and the other management operations with their
manageable working nature (Geoffroy-Schwinden, 2022).
Disadvantage:
 In case of any kind of conflicts which are been seen in between the partners the firm
will thereby being dissolved even after the willingness of the other partners to manage
the firm.
 Their will not be any kind of legal protection for all the partners and there is been
seen that in case of any kind of loss being all the partners will have to bear it even
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after having no issue and adherence being made by them. Their is been seen the
vulnerability of liability.
Partnership
This implies to have the collaboration of individuals in order to share the common
goals and the objectives through which they manage to share the common profit, loss,.
Liabilities and the mutual agreements are being made between them. In order to manage the
registration of such partnership firm their is maintained to have the HMRC to make the
further implications. other then this it is being implied to manage the conduction of affairs
and their affairs for the general management and working. Their can be so many partners in
one of the company through which they can attain to frame the management of the effective
business practice(Ralph, 2022).
Advantages
 All the investment and the general management can be made in easy manner as there
are so many partners to invest. Their is been seen that no burden of work is been imposed in any one partners as there
are all to manage and take the responsibility.
Disadvantages
 Their are been seen that so many in the company their are so many sleeping and the
part time partners which usually takes the same shares in profit and do not manage the
work together.
 In case of death of any of the partner there is implied that the firm will have to be
dissolved even after the willingness of any of them to manage and maintain the
working over their (Westlake, and et. al., 2022).
Limited Liability
Their is been seen that all the limited liability company is mainly the management and
the extent through which the restrictions are being imposed in all the partners for managing
and acquiring the work. All the shares which are being managed in all such business are not
being given to the general pubic. Companies are mainly all the separate legal entity which are
considerably distinct from their owner. Their will not be given about minimum capital which
are adjusted and maintained in all such incorporating business funds. All the liabilities and
the general management are adhered by the company itself. In these companies there is been
seen that the annual filing and the general reporting is managed by the companies house and
also through HMRC. All the major liabilities and the companies functions manage the
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guarantees through which the reporting and their annual filing is implied. Companies
regulates the financial liability and their also maintain the formation through general
adherence and working(COULIBALY-BALLET, 2022).
Advantages:
 All the shareholders of the company will get the benefits as in case of any kind of loss
being incurred then in all such cases there is being served that tax deductions and the
loss will be credit through the company itself.
 All the owners of the company will not be held liable for any of the loss which is
being made and there is been seen that no person will adequately be responsible for
any such issues. The protection to the person being involved in the company is being given as through
all the contemplation and also by focusing on all the laws and the abiding principles.
Disadvantage:
 The formation of all such companies is mainly a complex process and that is also
expensive which makes difficulty for the person to invest in all such business
activities.
 In all the appeals which are being raised by the limited liability partners there is been
seen that it mainly make the directors being liable and focused to pay all kind of
debts.
Recommendations for IOM Solutions
As there is been seen that IOM solutions manages the sole trader business practices
there is been laid that all the management and the effective working of the company is being
to manage and carry all the sole responsibility through which they maintain all the business
affairs. As IOM solutions maintain and manage the sole trader business and in order to
reorganize the business the IOM can eventually formulate the limited liability company for
managing and expanding their business (Kriebaum, Schreuer, and Dolzer, 2022). As it will
provide the separate legal entity with which all the management and the perpetual succession
is attained. Their is been seen that the company will not face any kind of difficulty in raising
funds. This will also be beneficial as the companies carry their own liabilities in order to
manage and raise funds.
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Conclusion
From this above report it is conclude that, there are different kind of business
organization which have variable legal structures. They are like the sole traders, partnership,
limited liability company and many more. All such incorporation are managed in different
structures and the procedures which are like the profits, income, management band
functioning. As in all the partnership firm there is been seen that in case any conflict arise
then the firm will be dissolved even after the willingness to mange the firm. The company
implies to be registered in a systematic manner and follow a complex procedure for it.
Further it is also analyzed that IOM solution can opt the limited liability company for
managing their efficient business practices.
References
Geoffroy-Schwinden, R.D., 2022. From Servant to Savant: Musical Privilege, Property, and
the French Revolution. Oxford University Press.
Westlake, and et. al., 2022. Terms of engagement for working with patients in a person‐
centred partnership: A secondary analysis of qualitative data. Health & Social Care in
the Community, 30(1), pp.330-340.
Sarkar, D. and Sheth, A., 2022. Development of sustainable public–private partnership model
for bus rapid transit system in Western India: a case study approach. Innovative
Infrastructure Solutions, 7(1), pp.1-15.
Wake, N., 2022. Considerations for Starting a 3D Printing Lab in the Department of
Radiology. In 3D Printing for the Radiologist (pp. 191-200). Elsevier.
Arthur, I.K., Agyemang, E. and Nikoi, E.G., 2022. Evaluating the Viability of the Ghan
Airport Cargo Centre as a Public-Private Partnership Project. In Handbook on Public
Private Partnerships in Transportation, Vol I (pp. 15-30). Springer, Cham.
Kim, S.G. and Hong, J., 2022. The Government–Civil Society Relationship in Korean
International Development Cooperation from a Historical Perspective. In
International Development Cooperation of Japan and South Korea (pp. 237-257).
Palgrave Macmillan, Singapore.
Zarubaev, and et. al., 2022. Optimization of application schedule of camphecene, a novel
anti-influenza compound, based on its pharmacokinetic characteristics. Fundamental
& Clinical Pharmacology.
Ralph, N., 2022. An Introduction to Social Enterprise for Practitioners in Preventing and
Countering Violent Extremism. In Countering Violent and Hateful Extremism in
Indonesia (pp. 255-275). Palgrave Macmillan, Singapore.
COULIBALY-BALLET, M., 2022. The Role of the Fairtrade Label in the Spread of
Sustainable Production and Responsible Consumption in West Africa: The Case of
Côte d’Ivoire1. Sustainable Development Marketing: Marketing for Sustainable
Development, p.195.
Kriebaum, U., Schreuer, C. and Dolzer, R., 2022. Principles of International Investment Law.
Oxford University Press.
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