Introduction

What all businesses strive for is to maximize profits by doing transactions with clients in a
market. It always wants to operate smoothly its operation while doing its activities. But all the
times it does not get a favorable situation for conducting as everything has its privileges and
drawbacks. It might be simple to make money in the United Kingdom because of the country's
strong economy. To complete this module, I plan to utilize both my own money and a loan from
a bank to fund my new business. First, I'll go through the various legal statuses of business,
including their advantages and disadvantages. After that, I'll go over the strengths and limitations
of each of the three major sources of commercial activity in the UK economy. Finally, I'd like to
discuss two contemporary HR rules.

Question 1

a) Putting together a table showing the various legal statuses of business

identifying their strength and weakness.

Depending on the type and extent of one's business, one's legal standing may change; one must
also consider the tax implications. Social enterprises and community interest corporations may
be good options for those who desire to have an impact on the world. Talking about how a
corporation or an individual might raise money through business is critical. There are several
laws that control how businesses operate. It is necessary to first assess the strengths and
weaknesses of competitors in order to do business.
 Legal Description Strengths Weakness
Statuses
PLC It is demonstrated in the A limited company is The cost of forming a
jurisprudence, private among the most Public Limited
limited company, a common corporate Company is much more
separate entity from the entities in the UK due to than the cost of forming
owner who owns it. its restricted liability, a Private Limited
Stockholders' potential tax benefits, Company. Companies
responsibility is limited and ease of operation. that are publicly traded
to their capital and any The company with the must provide investors
outstanding shares they opportunity to obtain with all relevant
possess, which is a extra capital from the information about their
substantial benefit of market of stock. company's prospects for
operating as a limited growth and other
company. A considerations. A
shareholder's equity public limited company
investments are not has no privacy and
jeopardized if a limited cannot keep secrets;
company is dissolved. it even its bank accounts
is needed to raise at least are open to the public.
fifty thousand pounds’ Unlike private firms.
worth of share if a
company wants to
registered itself as a
public limited company.
It needs to select
minimum two person as
a directors as a legal
requirement.
LTD The law attests to this. A Personal assets in a A private company's
private limitedPrivate Limited memorandum of
corporation is a legal Company are only at association restricts the
entity distinct from the little risk. A shareholder transferability of its
individuals who own it. can transfer their shares shares. This
The primary distinction in a business limited by organization is unable
between them and PLCs shares to anyone else. to offer share to the
is that they cannot Transferring a stake in a general public.
directly participate in thecompany that is
stock market. operated as a partnership
or a sole proprietorship
is far more difficult.
Register This company was This results in a fund When it comes to
ed established for charitable that is sensible and management, the
Charity purposes. accessible, creating a directors are almost
The company is positive public image. always unpaid, and
governed by the law of enterprise investments
 the High Court. The UK are based on their own
needs at least £5000 tastes.
annual income.

LLP Each member of a In terms of Such sort of institution's

limited liability responsibility and tax returns is
partnership is only liable obligations, the partners exceedingly
for the amount of money are allowed to design complicated. Many
they put into the the agreement as they disputes might arise
partnership. The LLP see fit. while doing business in
must have at least two such a partnership.
‘selected' partners who There seems to be a risk
are responsible for the of business dispute if all
day-to-day operations of choices aren't made
the firm. collaboratively when
operating the company.
Sole Single proprietorship is Single operators continue It's implied that the
to represent the majority
Propriet by far the simplest business's duties and
method of establishing of founders since it is less losses are solely borne
orship
and operating a business. expensive to set up and by the operator, even if
It is owned and operate a business as a they include unpaid
single operator. The firm
controlled by a single owner retains ownership taxes or office leasing
individual. . of all profits. Starting up costs.
as a single proprietorship
allows you to start small
and expand as your
company expands.

b) Three types of finance convenient for my business start-up evaluating their

strengths and weakness

I own a little restaurant in Manchester that serves local cuisine. When it comes to funding a
business, there are three main options to consider. In order to access these cash, I can either use
my own money or borrow from banks, lenders, or the federal government. In the next sections,
we'll look at the three main sources of strength and weakness.
Personal Finance: In the context of personal finance, managing your money, saving, and
investing are all included. It is using or investing one’s own money in business which he or she
may get from saving or through inheritance. It is the easiest way of financing in own business.
The majority of the time, it is determined by one’s income, spending, living necessities, and self-
interests, as well as the plan one devise to achieve those goals within ones financial limits.
 Strength: More control is available in this method of financing than in others There will
be no change in the ownership interest, which implies that all future earnings will be
owned by the sole trader. This source also avoids extra or excessive cost of capital.
Weaknesses: Many funders and investment firms can also give mentorship and
connecting opportunities for businesses. Anyone starting their own business will have to
establish their own networks and seek out mentorship possibilities if they choose to do
that without the help of others.

Bank Loans: Start-up costs can range from a few thousand dollars to several million dollars,
depending on how much inventory you're planning to acquire or how much you want to expand
your firm. You'll require financing if you don't have the funds available. A bank loan is one of
the financial possibilities. Compared to credit cards and overdrafts, these loans provide tax
advantages and cheaper interest rates. However, one must meet a variety of loan obligations, and
the burden of repayment can take its toll on the mental health.
Strength: It has the lowest interest rate, resulting in the lowest capital expenditure. Low-
interest loans, rather than high-interest ones, would be an attractive alternative to venture
capital. In order to make money, it isn't crucial to give up specific assets.
Weaknesses: Getting a bank loan might take a long time. Borrowers must complete a
significant amount of documentation, and the interest rates are not always clear. Although
the process of requesting for a loan and receiving money from a lender might take a long
time, it is possible. Bank loans are among the most difficult to get when compared to
other funding choices.
Family, Friends & Fools(The 3 F’s): Before advancing professional investors, it might be a
good idea to try to get some money from ones family, friends, and other people .  If one has a lot
of close family or friends, they are likely to invest in your project because they think it's good or
because they believe in you or your idea. As they are usually not professional investors, you
should not expect them to give your business plan a professional grade.
Strength: They are able to offer low or no-interest loans. Formal lenders, on the other
hand, may demand a longer payback time or a lower rate of return. Commercial sponsors,
on the other hand, are more likely to demand a higher early return. Because they already
know who you are and what you've been through, they won't require a whole business
plan.
Weaknesses: These kinds of transactions can be complicated. Relationships might suffer
if there are any misconceptions regarding the arrangement. If ones investors are willing to
pay more than they can afford to lose, or if they want their funds refunded when it suits
them but not ones firm, there is a chance that your business may fail. Also, they may
want to get engaged in the operation, which might not have been the best course of
action.
A combination of loans and my own money might be used to get the company off the ground.
This should be the most crucial consideration, because borrowing will allow me to earn money
without having to put any of my own money at risk.

Question Two

Three sites of economy of UK in which a business can operate showing the

difference between those sectors also commenting on their value to the economy of
UK.

The United Kingdom’s economy is a socially developed one and which is also market-oriented
one. The United Kingdom’s economy contributed 3.3% to the total global GDP being the world's
fifth-largest nominal GDP generator, tenth-largest PPP. The service, manufacturing,
construction, and tourism industries account for the majority of the country's gross domestic
product (GDP). The three main sector of the economy of the United Kingdom is explored in
detail:
A. Service Sector
Service sector is the sector of the economy that provides services rather than tangible goods.
There are two basic forms of economic activity recognized by economists: products and services.
Manufacturing and construction are two of the most important businesses in the world since they
both produce physical goods. There are a wide range of service sectors that cover anything from
banking to communications to wholesale and retail commerce to professional services such as
engineering, computer software development and medical to non-profit economic activities. It
was the service sector that made up 80% of the overall United Kingdom’s economic output
(Gross Value Added). This sector also contributed 82% of its employment nationally during June
to September (2021). (Brien, 2022)
B. Manufacturing Sector
Manufacturing is the process through which raw materials or components are turned into
finished products that may be sold on the open market. There is a place where everything you
buy in a store or online is created. There are 149 manufacturing industries in the United
Kingdom. For the past five years, the United Kingdom has ranked 12th out of all countries in
terms of business growth. Employment in the UK Manufacturing Industry was expected to
generate approximately 2,581,548 jobs in the last 5 years being the 13th fastest-growing
industry. Manufacturing wages in the UK are expected to climb to $92.9 billion in 2020 from
$89.9 billion in 2015, according to new projections. By 2020, manufacturing in the United
Kingdom will have the eleventh-highest average wage in the United Kingdom, as a consequence.
(IBISWorld - Industry Market Research, Reports, and Statistics, 2021)
C. Tourism Sector
The tourist business is vital to the British economy. The United Kingdom is a popular tourist
destination around the world. The tourism industry in the United Kingdom accounts for 9% of
the country's total gross domestic product (GDP). The government has made an embargo on the
visit to UK due to the coronavirus (COVID-19) resulting from declining the contribution to the
GDP. This virus has a varying consequences across industries, according to various statistics out
from business Survey. In May (2020), income generated from travel and tourism industry has
fallen dramatically because of the pandemic causing embargo on travel by the government.
During the first nationwide lockdown, the lodging and travel agency industries suffered the
steepest drop in turnover, falling to 9.3 percent of February levels in May. (Coronavirus and the
impact on the UK travel and tourism industry - Office for National Statistics, 2021)
Distinguish between the three sectors are demonstrated below through table-
Sectors Name Sectors Specification
Service Sector The service sector contributes most to its GDP which is unfortunately
harmed by the grievance of the pandemic. Before that it contributed about
eighty-one percent of the total GDP, more than the other two sectors
certainly. The service industry has created a significant number of jobs
for the residents of the country. (Amutha and Juliet, 2017)

Manufacturing In 2020, the manufacturing sector will account for 9.6 percent of overall
Sector economic production in the United Kingdom. (Additional Gross Value)
In March 2021, it accounted for 7.3 percent of the total workforce.
(Manufacturing and production industry - Office for National Statistics,
2018)

Tourism When it comes to economic impact, the travel and tourism business has a
Sector substantial impact on the United Kingdom (UK). This sector contributed
a projected 239 billion British pounds to the UK's gross domestic product
 (GDP), but it was estimated that this amount would drop by more than
half by 2020 as a result of the coronavirus epidemic. (The UK Tourism
Industry: Benefits And Challenges, 2022)

From above it is clearly visible that service sector is contributing about four-five to its total GDP.
The economy of United Kingdom largely depends on this sector certainly. After the service
sector, it is the manufacturing industry which is contributing more resulting in a more
employment for the labor force. Thus it is the tourism sector which is expanding day by day but
it gets halted by the pandemic during the last two years. Now this sector is trying to revamp and
cope-with the post-pandemic situation.

Question Three

The identification of two HR policies and their opinions

Long-term goals can be achieved by policies accepted or established by a group of people who
work together. As a rule, these are laid down in a way that is easy to understand. In order to
guide and influence the organization's important choices and keep all operations within specified
bounds, policies are created. Every organization preserves some policies; HR policy is one them.
As the term suggests, HR refers to an organization's conventional ideas and guidelines. These
policies are used to hire, train, assess, and reward employees. An organization's HR rules vary
widely (Tran, 2020). Health and safety policy and equality and diversity policy are listed below:
Health & Safety policy
An employer's health and safety policy outlines the general standards for the company's program
in broad strokes. Regardless of the industry in which our company operates, occupational
injuries are a possibility. The health and safety policy serves as a roadmap for all employees,
outlining the steps they must take to maintain the workplace as safe as possible. As part of this
policy, employees are required to report any work-related accidents as quickly as possible and to
follow the company's emergency procedures and safety measures. The Workplace Health and
Safety Act has a number of regulations that require managers to be familiar with in the event of a
problem. According to health and safety regulation, if a company has any special alchemical
compounds, it should have a plan for warning employees about potential dangers. Every
employee in a company has a duty to ensure their own safety and well-being. In light of the
numerous shareholders, health and safety is clearly a shared concern for everyone involved. HR,
along with other stockholders and employees, is critical to the company's overall safety. An
organization's personnel need to have the proper training and education to perform effectively;
they must be given priority to complete their assigned jobs. The employer is obligated to cover
the costs if any employee gets injured on the job. Employees must be taught how to do their jobs
correctly, and their safety must be improved. (Walters, 2012)
In summary, each corporation has a responsibility to ensure that workspace has suitable health &
security features in designed to safeguard who employs or attends therein.
Equality and Diversity policies
All workers deserve equal treatment. It is critical to have a policy in place to maintain equality in
the workplace in order to protect employees from discrimination, bias, and harassment, as well
as to promote employee growth and development over the long term. The equality and diversity
policy is intended to assist employers in avoiding racism against all employees and to provide a
forum for employees who are discriminated against or believe they have witnessed racism to
address the issue with their manager and be certain that it will be addressed seriously. So, it is
important to think about equality and diversity because some people and groups have a harder
time getting the respect they deserve in society. Community groups may not realize that they are
ignoring or discriminating against certain groups of people who are less fortunate than they are.
Think about what you can do to make the group as safe and inclusive as possible for everyone
who wants to join and participate in it. To ensure that all employers and employees receive equal
treatment, to provide each and every member of the institution with the opportunity to reach their
full potential free of impediment or racism, is the central premise of this policy. Each employee
is entitled to the same treatment. It is vital to have a strategy in place to promote fairness within
the business in order to safeguard employees from injustice, racism, and discrimination, as well
as to promote diversity and long-term career advancement. Each employee must be treated
equally and fairly during the hiring, training, and promotion processes, as well as when
transferring. The organization should foster an environment in which a diverse group of people
may collaborate to achieve positive outcomes. Prejudice must be avoided at all costs in any
commercial organization, and violators must be punished. Personnel and management should be
responsible for ensuring that these regulations are followed. We must all work to minimize
injustice by cultivating a climate of impartiality among the workers of each organization.
Incentives must always be offered on a fair basis to all employees, and loyalty must be ensured.
Promoting equality and diversity at work provides the additional benefit of attracting,
motivating, and retaining employees. (Sayce, 2016)