BMP4002 Business Law: Key Sources of Law for UK Business Report

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 Companies Act 2006 and its impact on business operations, employment law, and various liabilities. The report details different legal business structures such as sole proprietorships, general partnerships, limited liability partnerships, and limited liability companies, outlining their advantages and disadvantages. It further provides a recommendation for IOM Solutions, suggesting a limited liability company structure for scaling business operations. The report concludes by emphasizing the importance of proper business management and utilizing appropriate legal structures to achieve profitability and success.

Business Management
BMP4002 Business Law
Assessment 2
Report describing the key sources of
laws as the legal context for business
organisations in the UK

Table of Contents
INTRODUCTION ..........................................................................................................................3
Business and Organizations in UK..................................................................................................3
The legal business structure of UK companies................................................................................5
Sole trader:..................................................................................................................................5
General partnership:....................................................................................................................5
Limited Liability Partnership:.....................................................................................................6
Limited Liability Company:........................................................................................................6
Recommendations for IOM Solutions:............................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business refers to the separate legal entity that is positioned with the purpose of attaining more
and more revenue as well as profitably by buying as well as selling of the products in the
potential market area. Organization are functioning in the competitive market area and they can
function with the suitable method so that they can sustain in the industry for a long period of
time. In addition to this market is the area in which consumers as well as sellers come together in
accordance to make a deal with themselves and consumers can satisfy their needs and by that
company can sustain in the market and also make sure the major growth of the organization in
the sector (DISTINCTIVENESS, 2021). It also leads the individuals in order to facilitate the
trade exchange with the money in the large market area. Several entrepreneurs that are emerging
focus on start-ups as the potential opportunity for them and they can attain their goals and
enhance their standard of living. As the entrepreneur or the owner of the venture capital and
investment that are they are with them which also force them to focus on type as well as size of
the business venture as well as on its structure which can be either small medium or large
company. Furthermore law of business assist in evaluating the several business structure which is
legal in the market of United Kingdom. Additional it also assisted providing data which is linked
to the several structure of the business and their advantages as well as disadvantages. Headless
recommendation will be given for the organization for the suitable type of business venture of
the respective organization.
Business and Organizations in UK
In the country United Kingdom there are several tasks of the business as well as its
management which are being done in accordance to the legal Companies Act 2006 which is
basically providing the provision of the effectual operation. Of the business and it leads to
possess the suitable functioning of the company (El-Jourbagy, and et.al., 2021). Commercial
enterprise cannot operate without having its staff as they are the main resources of the business
that assist in doing all the business operations in an effective as well as efficient way. Therefore
the behaviour as well as the conduct need to be in according to the law of employment in which
every activity can be done in the ethical as well as proper way. At the time of making of the

business it is crucial for the business that is inclusive with the several legal agreement and by
providing the name so that it can be launched in the marketplace. These are the several elements
in which head as well as calluses which are differentiated them from and among each other on
the buying as well as selling of the products in the marketplace..
With conducting the approaches which are not professional of the workers in which lack of
company in functioning its operations as it can lead to have several operations. It is one of the
liability that comes in the business venture as it is known as Swiss carious liabilities which
comes together with the business that function the operations of the organization in suitable way.
The director is an individual who is appointed to a specific job roll as the leader of the
organization and that they are given specific responsibility is which are allocated to them through
their job rose that they need to fulfil with more integrity and attention in order to provide suitable
working condition and genuine business operations. The director might ask for the remedy in
order to address the specific problems and compensation for the damages. If the major Cause
occur agreement or the legal contract can be dissolved and it can also invalidate the directions
which are taken by them and also take them to the trials for few of the serious misconducts.
Moreover, to this position of the sets of the company with the director who might also take them
at the time when the contract is completed (Fandl, 2021). Commercial business also faces and
suffers the various issues in relation to the an appropriate attitude and behaviour of the members
of the team or the staff as they are responsible for doing their jobs and responsibility effectively
and efficiently
The government imposed partnership act of 1890 states that it is the agreement off the
partnership by offering several better management as well as provisions of the venture which can
occur with the support of the MOA which is known to be memorandum of association And AOA
which is known as the article of association. In addition to this memorandum of association is the
document which supports in maintaining every operation of the organization within the given
time period as it gets implemented leader it will be signed by all the stakeholders of the
organization. Moreover to this article of association is the legal document that represents the
regulation as well as rules of the company which need to be followed by the management while
doing the entire operations of the business.

The legal business structure of UK companies
Sole trader is known as sole proprietorship in the provided business venture in connection
to the respective organization where every business venture is being operated by the business
enterprise itself (Fruehwald, 2021). Sam has been working in this venture for around almost 8
years and the recent 2 years management have developed and scaled up its business operations.
Soul trading is major property to the venture and it is managed by the single owner and the
owner is responsible for all the losses as well as profit and also the crucial decision making of the
organization in order to make sure enhanced revenue as well as profitability of the company has
been attained. In addition to this the Sam is focusing on scaling the operation of its business
venture and looking for the structure for the business that will be suitable for the organization.
There are several structure of the businesses which are mentioned below in brief.
Sole trader:
It is known to be the self-employment where overall business venture is being functioned
by the single owner and this type of structure gives the advantages with the positioning of the
venture in an effective as well as efficient way. Therefore it is convenient for the entrepreneur in
order to function its business operation and this is one of the most used type of the business
which emerging young entrepreneurs that leads to position the venture on the small to medium
size organization. In addition to this entrepreneur do this because of the lack of funds and
resources with them it is basically opted by the single individual that desires to maintain the
business starting its own in the form of start-up which is small (Schu, and Lee, 2022). The
decision making are also done by the owner and also the ownership gives the several kind which
attain the new people of the business. This is also linked to the some of the disadvantages which
can sometimes be loses, Debs and liabilities in which the single individual or the owner of the
organization have to bear buy their own.
General partnership:
In this type of partnership in which people more than 2 who has the single purpose as the
common partners with the mutual agreement of the partnership. These respective partners
conduct the business operation by dividing all the obligations as well as duties equally. All the

losses as well as the profits is also being shared on the terms of agreement among the partners
and also cost of establishment of the business will faced by them only. The partners have the
unlimited liabilities but it is less risky than the sole trading because of the attainment of the easy
capital in the organization. Moreover to this several skills as well as expertise of the different
partners they have involved in the making of decision by which management can increase the
performance as well as productivity of the company which will lead to enhance profitability
(Van Dycke, 2021).
Limited Liability Partnership:
This is the type of business in which basically partnership that provides the low mount of
liabilities I if it is compared to the journal partnership. This differ from the establishment of an
obligation in that the quantity of funds that the Capital Partners can spend is basically limited. 2
or more people are partners forms of venture as well as they are responsible for all the losses as
well as income of the company but they do not have the joint obligations or the venture. Apart
from this partnership is being registered add the government office which should follow the rules
as well as policies of the government. In accordance to the partnership act of 1907 LLP is formed
by obtaining the interest of all the partners. It is the retain agreed document which supports in the
smooth operations of the venture.
Limited Liability Company:
The private limited company is governed by the 2006 act of company which lays out the
brief of limited liabilities as well as the provision regarding governing of how the company is
operating and how the business is dissolved. It is entirely based on the legal obligations in
relation to the duties as well as rights of the members and partners of the company. The board of
directors is basically the people who is in charge of the operations of the organization. The
company is basically owned by its stakeholders which has the different entity apart from its
owner (Yanofsky, and Hanselman, 2021).
Recommendations for IOM Solutions:
At the time when the company develops then it needs the major scaling in which they can
take the advantage in order to grow and expand their operations of the business in the new

market area. It also states that the business in order to utilise as well as function there business
ventures in the several dynamic situations. Therefore Sam should opt limited liability company
for scaling of their business which is IOM solution. Moreover to this the legal system provides
the several range of advantages that also assist them to share the obligations of the management
with several people. This also support in enhancing the profitability margin of the organization
as it basically provides the efficiency in the planning of the taxation. In addition to this more
investment from the several investors are attracted to this type of the business organization
because of its reliable situation that can also support in the attainment of more and more capital
funds.
CONCLUSION
From the above report it has been concluded that the suitable management of the business
venture is crucial so that it can operate its operations in suitable way. Love business governs the
several divisions as well as departments and the functioning of the organization. Additionally
they usually operates its operation with the single aim of attaining more profitability and success
in the market area. Respective entrepreneur is recommended in order to utilise the limited
liability company for the scaling of edge business venture which will be beneficial for attaining
the goals and objectives of the company.

REFERENCES
Books and Journals
DISTINCTIVENESS, S.M.T.D., 2021. WILLIAM & MARY BUSINESS LAW REVIEW.
El-Jourbagy, J., and et.al., 2021. Combining Business Law with Business Theory: An
Experiential Classroom Crossover Activity. Journal of Legal Studies Education, 38(2),
pp.139-166.
Fandl, K.J., 2021. Up in Smoke: International Treaty Obligations and Marijuana Reform in the
United States. American Business Law Journal, 58(1), pp.163-220.
Fruehwald, E.S., 2021. A Guide to Help Lawyers, Law Students, and Business Professionals
Develop Cross-Cultural Competence.
Schu, L. and Lee, J., 2022. Regulation of Algorithmic Trading: Frameworks or Human
Supervision and Direct Market Interventions. European Business Law Review, 33(2).
Van Dycke, L., 2021. Accumulation by dispossession and African seeds: colonial institutions
trump seed business law. The Journal of Peasant Studies, pp.1-32.
Yanofsky, R.M. and Hanselman, T.F., 2021. Business law issues for assisted reproductive
technology practices and practitioners: considerations for sales or mergers of fertility
practices. Fertility and Sterility, 115(2), pp.290-295.