Sample BMP4002 Business Law Assignment

BMP4002 Business Law Assignment Sample

Assessment Details

Individual Report (weighting) - 50 %
Words - 2000 words)
Assessment Name - Business Organizations

Learning Outcomes Assessed:

Explain sources of law, business transactions, the nature and management of a company, the concept of business liability in negligence, the vicarious liability of an employer and also individual employment rights.

Assessment Brief:

Sam operates as a sole trader (IOM Solutions) selling electrical parts to local garages. Sam has run the business for eight years. Over the last two years, Sam has found that the business has grown in terms of demand and employees. This has placed a number of pressures on Sam whilst also presenting a number of opportunities. As of October 2020 Sam, has decided to expand the business. However, Sam is not sure of the most appropriate form of business ownership for IOM solutions.

Explain to Sam, what types of business organisations are potentially available in terms of reorganising IOM Solutions, and the legal consequences for each option. Ensure you support this explanation with a recommendation of the most suitable organisation type for Sam to choose for IOM Solutions.

Secondary Research Level HE4 - It is expected that the reference list will contain between five and ten sources. As a MINIMUM the reference list should include one refereed academic journal, two academic books and case law.

Additional Submission Instructions:

You are required to submit a soft copy via “Turn-it-in UK” on the module Moodle page. The software will allow you to check your work against other material on the internet. It will also compare your work against other students work.

Solution

Introduction

There are many business laws and policies present in the UK region. There are four types of business structure present inside the UK such as sole trader and partnership and also the limited ability of partner as well as a limited company. When an entrepreneur starts a company, they need to follow some steps and those steps are very much important for the UK organisation. Choosing the right type of business is very much important to run the business for a long period. This report is focused on the business and organisation in the UK markets also, the legal business structure of UK companies that are sole traders, and general partnership and partnership also limited liability. The recommendation and IOM solution are also briefly included in this report for best assignment help.

Businesses & Organisations in the UK

The nature of management is involved several things for organising the companys people in a team and managing them properly. As suggested by Singh et al. (2019), It needs multiple levels of empathy and understanding them properly. Also, businesses care about well-being as well as society. The organisation is focused on the employee's development and gives the motivation to them to retain. There are various functions in the organisation, such as proper planning and organisation. As mentioned by Urbanski et al. (2019), the people also recruit employees as well as direct them in the proper way. The last one is to build strong communication between the organisation and employees and properly control them. In the organisation, there are three types of management levels, top and middle also lower. In this modern era, managers have several types of skills and run a successful business. The companies act (2006), according to this act parliament of the United Kingdom, forms many primary sources in the UK company law (Legislation, 2022). This act creates many modernised and simple corporate laws and creates some rules and regulations.

Insolvency act 1986, this act if a company cannot pay their debts, then it will be due. Employment act 2002 mainly focused on introducing a new friendly work culture in the UK business market and gave equal treatment to every employee (Legislation, 2022). It gives many advantages to the employees, and the last is it helps to give motivation to organisation employees and give the proper space to the employees that they can comfortably work in their company. Employment act 2008, according to this act, the compensation is provided to the employees for the financial loss in the unlawful underpayment or other non-payment options. Under this law, it helps to give the minimum wages to their employees (Legislation, 2022). Vicarious liability is a specific situation in which one party is responsible for the unlawful act which is done by the third party. The other third party also has their own liability, which belongs to their own share. As mentioned by Antcliff et al. (2021), Vicarious liability comes with the employees and employers’ relationship, which represents the respondent superior. Business liability is negligence that represents professional negligence when the professionals cannot perform their roles and responsibilities and decrease the work standards as well as breach the duty of care. As per the view of Malagila et al. (2021), it can lead to many cruises such as financial loss and can damage physically and can also lead to the injury of the customer and other employees and clients. Negligence in business cannot achieve the targets. Also, it cannot meet the high work standard. Directors have several roles in the UK organisation; they have the powers, and they need to make sure that all powers work in the right way, and they have the duty that exercises the independent judgement. Also, they have the responsibility they bring success to the enterprise, and they have the proper skills and right knowledge, which gives the success to their organisation and help to run a successful business in the UK market (Keogh-Brown et al., 2020). Directors have other roles that are needed to avoid the interest in all conflicts, and directors are to avoid the advantages from the third party. A Memorandum of association is the proper statement that is signed by all stakeholders and other guarantors, and they belong to the company. This association writes the rules for a successful running company which are agreed upon by the company's stakeholders and directors of the company. The article of the association is to create a p[roper document which identifies all rules and regulation for the organisation's purposes and describe the organisation's operations (Olenina et al., 2022). These documents make sure that all tasks are complete in the organisation and properly handle the financial statement.

The legal business structure of UK companies

Sole Trader

Sole traders run their business individually, and they are self-employed in their business. Any person can be a sole trader, and they can keep their business profit after giving all taxes to the UK government (Kindylidi, 2020). If any person faces any losses in their business, then they are solely responsible for the losses, and sole traders need to follow some rules and regulations. Solr4 traders need to maintain all business records and other financial records and need to send a tax return to the UK government every year. Sole traders need to pay a certain amount of income tax and must register for the VAT. Sole traders do not need any licence in the UK market (Yousef, 2019). A business licence is needed for businesses operating with the private security sector with the proper supervision and other surveillance. Sole traders need to follow some steps that they are self-employed, and they need to show the company name that they run the business and also show the proper financial statement which needs to be legal and follow some rules and regulations and the latest one shows the proper tax statement. Sole traders have many limitations, such as they have personal liability, and many customers do not want to deal with the sole traders; for this reason, sole traders cannot make that much profits (Fiandrino et al., 2018). Sole traders need to do proper planning for their taxation. Also, they cannot share their ideas with their colleagues, and they cannot innovate new things, which is the most liable part of the business.

General Partnership

The general partnership represents the framework that partners are equally responsible for all consequences in the business market. If the business faces some losses, then all partners are equally responsible for losses, and they can share business profits as well. Partners share all stock and equipment which they buy for the business (Cabaj, 2019). A general partner agrees with all business terms and rules and regulations and builds more policies which they agreed and runs a successful business in the UK market. A general partnership does not have any legal bodies for other employees in their organisation. As suggested by Rahman et al. (2021), general partners get the payments throughout the management fees, and they share the carries interest also distribution from the capital. If any partners are run by someone, then they follow the general partnership structure and all partners are agreed with all assets and profits and other liabilities in the enterprise. A general partnership is the simplest legal business structure, and the most important part, every partner is responsible for the consequences, including all debts and other legal factors (Tawiah et al., 2021). A business run under a general partnership is the better option to run a successful business, and it gives many advantages like this business has double resources. It has some limitations, such as general partners having some responsibility for the other partner's actions. Also, there are many disagreements that could be arisen, and general partners are liable to other partners for the company's debts and liabilities.

Partnership

There are three types of partnerships such as ordinary partnership and limited partnership also limited liability partnership. Company partners run the business under their name. Also, they can choose another name to run the business in the UK market (Kostruba, 2021). Partners need to include all partners' names and the business names. Partners need to take all the responsibilities for their business as well as need to share all profits and losses. The ordinary partnership does not have any legal existence; also, if any partners resign and bankruptcy also dies, then the business can still continue. The ordinary partnership is simple and flexible when two more people are running the business (Filatova et al., 2021). A limited partnership is made with a mixture of ordinary partners and other limited partners. Limited partnerships need to register the companies; also, they do not have the annual return also other accounts files. When partners receive the registered company, then they inform the HMRC and make sure that limited partnerships are set.

Limited Liability

Limited liability of partnership has various entities in the UK business market, and they need to register their company. Also, in this partnership, they have a minimum of two designated members, and they take all important decisions for the company and also perform important administrative duties. A limited liability partnership is the same as an ordinary partnership, and they do have not any responsibility for their actions (Akey and Appel, 2021). In this partnership, if any partners make some mistakes, then other partners will support them, and their partnership structure is too flexible than the other company. Also, all partners are to protect each other. In the limited liability, partnership partners are not liable for the organisation's debts and other liabilities. Limited liability partnership has the hybrid entities also merge with all characteristics in the organisation with all sole proprietorship. Limited liability partnership has separate legal entities from their partners who are liable for their money depending on how much amount they invest in the business. The partnership is connected with the companies and used for profit-making business. All partners need to give the proper address for their business and include all registered members of the business. This partnership needs two designated members who perform all-important duties as well as there is no limited maximum number. Limited liability can be individual or other company which can be dormant. Also, it has some disadvantages, such as partners can face many taxation rules and regulations, and it does not have any privacy. It also eli9mi8nate the partner's personal exposure and increases the financial risk.

Recommendations for IOM Solutions

IOM represented the international organisation for migration and was created in 1951; and it is the leading intergovernmental organisation which is based on the migration, and it works with the given market and intergovernmental also non-governmental partners. It has some principles which give many advantages to the migration people (Kemoli et al., 2022). IOM promotes the migration issue in the international business field and also gives humanitarian assistance that migrants need. Refugees and internally displaced people are also included in this part. IOM promotes all issues which are related to the migration of people and works on those problems, and tries to solve those issues (Garay et al., 2021). IOM management has some wide areas where they can manage the migrant people, such as migration and development and facilitating migration also, regulation migration as well as forced migration (Unbrussels, 2022). Migrant people face much discrimination in the UK organisation, and they cannot use all their advantages and also do not work properly on the work premises. In the UK, there are some acts which protect the rights of migrant people rights. Isle of Man Act 1979, This act is to help to protect their rights as well as to give them proper motivation and also help them to properly work on their work premises (Legislation, 2022). At this time, there are no barriers in the Isle of Man and the United Kingdom. Most of the company belongs to the partner company, and they have many employees who belong to different backgrounds and multiple cultures. Inside the partnership company, IOM is more appropriate than the other business structures.

Conclusion

Thus, it can be concluded that organisations have four types of market structure such as sole trader and partnership and also the limited ability of partners as well as a limited company. This report identified UK based laws which are applied in the organisation and also give some benefits to other corporations. Sole traders are specific or individual businessmen who have all responsibility for their business, and a general partnership is liable for other partners' actions. Also, partnership companies do not have any liability to other partners, and they are only liable for their invested money. Limited liability partnerships have two designated partners who perform essential duties in the organisation. Also, IOM is the most important part in the organisation, and it protects the migrants’ rights.  
References