a) Construction of a table to show the different legal statuses of the businesses that are adopted by a business with the weaknesses and strengths of these legal statuses
1.0 Construction of a table to show the different legal statuses of the businesses that are adopted by a business
The startup business might adopt various legal statuses of the business. These are Public Limited Companies, Limited Companies, sole proprietorships, Public listed companies, and limited liability companies
Legal status
Description of the legal status
Public limited companies
In the name of Plc, the presence of the public limited company is noticed. In the UK this structure of businesses is present (Kachela et al. 2021). The other structure of businesses, which includes partnerships, or sole traders, from that public limited company business structure is different because, in the form of a separate entity to the owners, the existence of this structure of business is noticed. In this regard, protection is offered from debt and liabilities.
Limited Companies
In the general form, a limited company’s presence is noticed of incorporation that limits the liability amount undertaken by the shareholder of the company (Cowling and Dvouletý, 2023). In the form of a legal structure, it is referred to, which ensures the subscribers or company members' liabilities are limited to their stake in the company by the commitments or investment ways.
Sole proprietorships
In the form of an unincorporated business, the presence of a sole proprietorship business structure presence is noticed. In this regard, only one owner presence is noticed who pays personal income tax on the earned profits (Haria 2022). The establishment of the sole proprietorship is very easy to dismantle, and the establishment of sole proprietorship because of the involvement of the government absence (Oe et al. 2022). With the contracts and owners, the popularity of it gets increased through this.
Public listed companies
Publicly, the trading of shares is done by the public listed companies. This indicates that, relatively the sales of the shares are possible to be done quickly, and for selling and purchasing the shares presence is noticed in the open market by anybody (Suárez et al. 2023). In the name of publicly traded organizations, the presence of publicly listed companies is noticed.
Limited liability companies
The owner's liability is limited by the Limited liability companies to the extent of their investment. In terms of the limited partnership, all the losses, and profits are passed by the LLC to its owners without being taxed.
Table 1: different legal statuses of the businesses that are adopted by a business
2.0 Weaknesses and strengths of these legal statuses
Legal status
Weaknesses and strengths
Public limited companies
Strengths For raising money, opportunities are present for PLCs, because, in them, the investment can be made by the public. To the shareholders, the more public company appeals, at the time from mutual funds, and investments, they will make money (Parker 2020). The funds might be raised further by the directors by issuing debentures, or bonds on the stock market.
Weaknesses In the form of a separate legal body, the presence of PLCs is noticed. To the regulations, they are subjected, to that are not present in the private companies. The controls are lost by the owners of the businesses of the company when it goes public (Stride et al. 2023). To the legal regulations, the Plcs are bound, which leads to less flexibility in the decision of the business. The shareholders and the institutions become in this regard, owners partially, and in any decisions they must be considered.
Limited companies
Strengths The strengths of the limited companies are, that they are tax efficient, the liability is limited in this regard, separate entity presence is noticed, and professional status is maintained. ’
Weaknesses The weaknesses of the limited companies are they are complicated to set, and complex account presence is noticed in this regard.
Sole proprietorships
Strength The strengths of sole proprietorships are, that it is simple and affordable, and in this regard, an individual has flexibility and freedom.
Weaknesses The weaknesses of sole proprietorships are, in this regard, no protection of liability is present, and the presence of liability in this regard, is unlimited.
Public listed companies
Strengths The strengths of the public listed companies are, fundraising ability by selling stock, and information on finance availability.
Weaknesses The weaknesses of public listed companies are increased scrutiny of the regulatory, and government, and to the global standards of accounting strict adherence.
Limited Liability Companies
Strengths The strengths of limited liability companies are limited liability, taxation, fewer hassles, and allocation of flexibility.
Weaknesses The weaknesses of the limited liability companies are the presence of limited life, self-employment taxes, and fees.
Table 2: Weaknesses and strengths of these legal statuses
b) Considering the idea of business weaknesses and strengths evaluation of the three sources of finance available to the startup of businesses
For the startup of the business, the three sources of finance that are considered are retained earnings, crowdfunding, and commercial banks.
Sources of finance
Weaknesses and strengths
Retained earnings
Strengths The strengths of the retained earnings are aside from the ability to business-boosting value and for emergencies setting aside funding.
Weaknesses The weaknesses of the retained earnings are the shareholders are turned off majorly through the retained earnings through the money retention that for the dividends are used.
Crowdfunding
Strengths The strengths of crowdfunding are, in terms of fundraising, in the form of fast way, the presence of crowdfunding is noticed, and tracking can be done by the investors regarding the progress. Because of this, brand promotion is possible to be done through their networks.
Weaknesses The weaknesses of crowdfunding are, to the reputation of the business, and the people who pledged the money, the failed project risk damage presence noticed.
Commercial banks
Strengths The strengths of commercial banks are information confidentiality, lesser formalities, and savings encouragement.
Weaknesses The weaknesses of commercial banks are procedural difficulties, renewal difficulties, and security needs.
Table 3: idea of business weaknesses and strengths evaluation of the three sources of finance available to the startup of businesses
Question 2
1.0 Three-sector identification within the economy of the UK in which a business can operate
The three sectors within the economy of the UK in which a business can operate are finance, hospitality, and retail.
2.0 Differences between the three sectors
Sectors within the economy of the UK in which businesses can operate
Finance
Hospitality
Retail
Supply
The contribution is made of around £173.6 billion in terms of finance to the economy of the UK, and in terms of the total economic output it is present at 8.3%.
The increase in annual economic contribution to £93 billion by £20 billion is noticed in terms of hospitality to the economy of the UK in the previous six years.
In the economy of the UK, in the form of an integral part, the presence of the retail industry is noticed, and contribution is made to the economy of the UK by this sector at around £98.4 billion GVA.
Demand
In the economy of the UK, the sector of finance contributes directly to the activity of the economy by making up the GDP of around 8%.
The sector of hospitality in the UK is growing continuously, and this sector is expected to grow to USD 28.11 billion from USD 24.81 billion by 2029, at a 2.53% CAGR.
In the economy of the UK, the total value of retail sales in 2022 was present at £441 billion.
Growth
Across the UK, around 2.5 million people are employed, and among them, in the sector of finance, 1.1 million people are employed. The economic output is produced by this sector at £278 billion (O'Connell et al. 2023). This is in the economic output of the UK is entirely present at 12%. The presence of tax revenue is noticed in this regard, at £100 billion,
In the previous six years, the increase was noticed in the hospitality sector in terms of annual economic contribution to £93 billion by £20 billion. In this sector, from 2016, a rise in employment was noticed at around 3.5 million (Gardner et al. 2021). That is the reason why, in the form of the third largest employer in the UK, the presence of hospitality is noticed.
At 4.7% in UK retail sales in 2022, growth had happened. The retail sales annual value in the UK has increased steadily over the past decade. In 2022, at around £496 billion roughly the highest total presence is noticed. In 2021, of the UK retail trade gross value is added, and this excludes motor vehicle sales.
3.0 Comment on their value to the economy of the UK
3.1 Finance sector
Figure 1: Finance sector of UK economy
In the services of finance, the leading position of the UK has major benefits. The 12% of GDP of the economy of the UK this sector is accounted for. Because of this, high-paying jobs presence is noticed in terms of the workforce at 7% in the economy of the UK, and at around £72 billion is contributed to the balance of trade of the UK.
3.2 Hospitality sector
Figure 2: Hospitality sector of UK economy
The wider sector of hospitality employs around 3.5 million people, and from the retail trade, wholesale trade, social care, and health this is only behind in the form of the biggest employers in the UK (Raben and Ntounis, 2023). In the overall growth of employment in the UK from 2009 to 2019, at around 17%, the contribution is made by the sector of hospitality. In the fifth position, this sector is placed in terms of the total number of created jobs.
3.3 Retail sector
In the economy of the UK, in the form of a major part, the retail sector presence is noticed. In the economy of the UK, this sector comprised 5.2% in 2020, and in 2019, this sector was comprised of 9.3%.
Question 3
1.0 Two HR policies identification and comment on their importance to the modern workplace
1.1 Two HR policies identification
The two HR policies that are identified in this regard, are leave policy, and code of conduct.
1.2 Two HR Policies Important to the Modern Workplace
Figure 3: Two HR Policies Important to the Modern Workplace
1.2.1 Leave policy
Among all the HR policies the leave policy is important because, through the implementation of the leave policy, it can be known by the employees, in terms of how, when, and what of the benefits, and leave they are entitled to. Among the satisfaction, performance, and productivity the balance is made in this regard. There are different leave policy benefits noticed in the modern workplace. These benefits include minimizing the abuse of leave benefits, no chance of manipulations of leave from the end of employees, or employees, trust and transparency increase, the process of leave simplifying through encashment automation, restriction, rollover, lapsing, accrual benefits, and holidays between leaves (Harris et al. 2020). The timely, and smooth leave integration requests are present in the benefits of the leave policy of HR with the timesheets, and payroll software.
The modification of the HR policy in terms of leave policy needs to be done because for every employee leave is very important. In this regard, related to the entitlements of leave, members of the team get proper information, at that time they will have more trust, and confidence in the startup, or in a large business (Razzak et al. 2023). To the more engaged, and happier people, this indicates who are motivated to be productive, and because of this, to the success of the business, they contribute majorly.
For the well-being, and confidence of the employees, absenteeism reduction, planning of holidays, and proper leave, for the bottom line, and it is law that employees are entitled to the leaves. That is the reason, the leave policy is also important.
1.2.2 Code of Conduct
In the form of a simple principle, policies, and rules set, a code of conduct presence is noticed regarding the way employees cannot, and can behave at the time of hours of working. The internal guidelines are outlined through this for all employees, and for corporate commitment, and values this is present in the form of an external statement (Gorjian and Gooyabadi, 2021). In office places, the making of decisions can be supported with the help of a code of conduct because of detailed structure is provided by it to follow. The ethical dilemma also helped to be prepared that can be in the job is faced with.
In the modern workplace, the code of conduct is important because it gives employees a proper guide regarding the way they should act, and work at the time of their job performance. It is expected by some companies that, the code of conduct must be followed by employees in their organizations with many requirements, while others keep it simple. In terms of the presence of rules knowledge, expectations, and policies a candidate understands if they can in a particular company can work, and for the work excelling, the employees are helped by those who are already present in the organization.
Loyalty and retention of employees can be fostered through the code of conduct quality. With the culture of the company when an individual does the engagement, at that time similar values are shared by them. In this regard, employees feel committed to their work in their workplace. In the form of a framework, the code also serves to make ethical business decisions (Varma and Dutta, 2022). In the form of a tool of communication, this serves employees, stakeholders, and customers regarding the true values of the company (Huang and Farboudi, 2021). Furthermore, a candidate is informed with the help of this regarding job seeking in terms of the way a specific company is likely to treat them upon joining. For the workplace the code of conduct is very important because, in the form of a handbook this serves.
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Reference list
Journals
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Gardner, M., Webber, D.J., Parry, G. and Bradley, P., 2021. COVID-19: How community businesses in England struggled to respond to their communities’ needs. Local economy, 36(6), pp.524-540.
Gorjian Khanzad, Z. and Gooyabadi, A.A., 2021. Development of strategic resilience framework for small businesses Post-COVID-19. Businesses, 1(3), pp.127-141.
Haria, V., 2022. Sectoral analysis of start-up funding in the UK raised pre and post COVID-19 (Doctoral dissertation, Dublin, National College of Ireland).
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