Question 1

a) Constructing a table showing the various legal statuses of business identifying

their strength and weakness.

One’s enterprises legal status might vary depending on the nature and scope of the enterprise;
one must also consider the tax ramifications. If someone   has social goals, he might want to
explore starting a social enterprise or a community interest corporation. It's important to talk
about how a company or a person might raise money by doing business. The operation of
business is governed by a number of laws. To do business, one must first determine comparable
strengths and legal shortcomings.
 Legal Description Strengths
Statuses
PLC It is demonstrated in the A limited company is In opposed to a Private
jurisprudence, private
limited company, a common
separate entity from the
owner who own it.
Stockholders'
responsibility is limited
to their capital and any
outstanding shares they
possess, which is a
substantial benefit of
operating as a limited
company. A company has no sense
shareholder's equity
investments are not
jeopardized if a limited
company is dissolved. it
is needed to raise at least
fifty thousand pounds’
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 jurisprudence bears
witness to this. A private
limited corporation is a
separate legal entity from
the people who own it.
The main difference from
PLC is that they cannot
operate in the share
market directly.
Register This company was
ed established for charitable
Charity purposes.
The company is
governed by the law of
the High Court. The UK
needs at least £5000
annual income.
Weakness
among the most
corporate
entities in the UK due to
its restricted liability,
potential tax benefits,
and ease of operation.
The company with the
opportunity to obtain
extra capital from the
market of stock.
To its constrained
obligations, potential tax
benefits, and simplicity
of operation, a in a private company.
private limited company
is among the most
preferred corporate
structures in the UK.
Good public image can
be created through this
resulting in fund which
is sage and accessible.
Limited Company, the
cost of forming a Public
Limited Company is
considerably higher. As
public limited
companies offer its
share to the public, it
must divulge it’s all
pertinent details about
its potential growth and
others. Public limited
of secrecy and is
incapable of keeping
secrets; even its bank
account information is
out to the public.
Memorandum of
association limit the
transferability of shares
This organization is
unable to provide
prospectuses to the
public at large.
When it comes to
management, the
directors are almost
always unpaid, and
enterprise investments
are based on their own
tastes.
 LLP A limited liability In terms of Such sort of institution's
partnership is one in responsibility and tax returns is
which each partner's obligations, the partners exceedingly
obligation is restricted to are allowed to design complicated. Many
the amount of capital the agreement as they disputes might arise
invested as in firm. At see fit. while doing business in
least of two partners must such a partnership.
be designated as There seems to be a risk
'selected' persons, who of business dispute if all
are responsible for the choices aren't made
LLP's daily collaboratively when
operation activities. operating the company.
Sole This is really the easiest Founders continue to Unlimited
Propriet approach to start and occur as single operators responsibility
orship conduct business: the because it is less insinuated, The
firm is owned and expensive to establish business's obligations
managed by a single up and administer. All and losses are
person. gains are kept by the individually responsible
business owner. Starting to the proprietor., if
as a sole proprietor they're unpaid taxes,
allows small and grow office rental, or
as your business grows. equipment
expenditures.

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

strengths and weakness

In London, the capital, I own a little restaurant. There are three primary sources for launching a
business when considering my business concept. These funds can be obtained by personal
finance or through borrowing from banks, lenders, or the government. The three primary sources
of strength and weakness are assessed in the upcoming sections.
Startup Loans: A startup credit is used to finance a new business. This is a government-backed
personal loan for those who want to establish or expand a business in the United Kingdom.
Selected one’s may not only receive fund for the business, but they will also enjoy free one-
year business coaching. Startup lenders offer entrepreneurs to borrow up to twenty five thousand
pounds when starting a business The loan has a low fixed yearly interest rate and one to five year
repayment period.
 Strength: It is among the most appealing sources of investment for businesses, since it
provides a substantial amount of money as well as essential knowledge. Entrepreneur can
also get supported by the government.
Weaknesses: As backed by the government, there remains a much more complexity
regarding paperwork. That’s why sometime fund is not so easy to get.

Bank Loans: Many banking institutions provide us with a variety of funding options for
businesses wanting to launch out. It's typically a good idea to start by contacting the bank with
which one has a personal account to see just how much money they can lend, as well as the
interest rates and terms of repayment. A bank will normally would like to verify that you're
putting some from his own money into the company.
Strength: It offers lowest interest rate forming a least cost of capital. The cost of capital
would be lower than the other high-interest loans, such as venture capital. It's not really
necessary to give up certain possessions in order to acquire money.
Weaknesses: It might take a long period of time to get a bank loan. One or who wants to get
loan has to fill out a lot of paperwork, and the interest terms are sometimes unambiguous to
them. However, the approach would not be swift; applying for a loan and getting cash from a
creditor could take many months. When compared to other financing options, bank loans are
one of the most challenging to procure.
Private Equity: Private equity (PE) is a type of finance in which capital (equity) is put into a
business. PE investments are often made in existing enterprises in related industries in return for
capital, or a share of ownership. PE is a key subgroup of the private sector, a broader and more
complicated segment of the financial landscape.
A sort of private finance that works outside of open market is known as private equity. Private
equity can be used to make direct investment or to buy out entire businesses.
Strength: Getting funding for a company or start up is difficult, but private equity companies
may help a new or failing business get the funding it needs. Organizations that obtain funding
from organizations such as venture capital firms may use it later in their development,
allowing them to experiment with different growth tactics to help shape their business.
Weaknesses: When a private equity firm invests in a business, it may be given the authority
to make decisions concerning the top management and governance. Loosing shares and
relinquishing control of a company one founded from the very beginning can be a difficult
part of a private equity process for entrepreneurs who started from the ashes of the old.
I may start the business through borrowing and personal financing. As borrowing is an advantage
I will get to make money without putting any, this should the important things to be considered .
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 well-developed social, market-oriented economy. It just has
the world's fifth-largest nominal gross domestic product (GDP), tenth-largest purchasing power
parity (PPP), and twenty-first-largest GDP per capita economies, accounting for 3.3 percent of
global GDP. Services, manufacturing, construction, and tourism are the industries that generate
as much to the UK's GDP. The three sectors of the UK to contribute to the economy are
discussed:

A. Service Sector
Retail, finance, government, business administration, leisure, and cultural activities are all
examples of service industries. In July-September 2021, service sectors represented for 80% of
total UK economic production (Gross Value Added) and 82 percent of employment. In February,
optimism in the services sector rose for the fourth month in a row to its top level since 2006,
indicating that the Covid-19 vaccination deployment will lead to a massive economic resurgence.
The service industry is much more important in the UK economy than in any other G7 countries.
Ever since financial crisis of 2008, the service sector has been the engine of economic recovery.
B. Manufacturing Sector
There are 149 industries in the UK Manufacturing sector, spanning of Vitamin and Supplement
Manufacturing to Basic Pharmaceutical Product Manufacturing and Precious Metals
Manufacturing. The increase of income, company, and employment varies greatly amongst
industries. Throughout the last five years, the manufacturing sector in the United Kingdom has
placed 12th in regard to business growth. From 2015 and 2020, employment in the UK
Manufacturing Industry increased by 0.7 percent each year on median, totaling 2,581,548 jobs,
ranking it the 13th fastest-growing industry in the country. In 2020, the average wage in the UK
Manufacturing Sector is $92.9 billion, rise from $89.9 billion in 2015. As a result, manufacturing
in the United Kingdom will have the 11th highest average pays inside the UK by 2020.
C. Tourism Sector
The tourist industry is extremely important to the UK economy. The United Kingdom is one of
the world's top tourist attraction. The tourist industry in the United Kingdom contributes 9
percent of the country's gross domestic product (GDP). In the United Kingdom, tourism is the
fastest-growing industry. Up to 2025, it is predicted to grow at a rate of 3.8 percent per year,
contributing almost 10% of all jobs. The tourist business in the United Kingdom is expected to
be worth more than £257 billion through 2025. The British Tourist Authority got around GBP
26.5 million each year for the span 2016-20, of which GBP 19.5 million is for VisitBritain and
GBP 7 million is for VisitEngland. In addition, the GREAT Campaign, which promotes Britain
overseas, gives the British Tourist Authority around GBP 23 million each year. Each one of the
regional administrations decides on tourism financing in Scotland, Wales, and Northern Ireland.

Distinguish between the three sectors are demonstrated below through table-
Sectors Name Sectors Specification
Service Sector The service sector which is majorly accounting for eighty one fraction of
the country’s total GDP. The services sector accounts for a significant
portion of the Country's total GDP. For the citizens of the country, the
service industry has produced a lot of jobs.

Manufacturing The manufacturing sector will make for 9.6% of total UK economic
Sector production in 2020. (Gross Value Added). It employed 7.3 percent of the
workforce in March 2021.
Tourism The travel and tourism industry has a significant economic influence on
Sector the United Kingdom (UK). This sector contributed a projected 237 billion
British pounds to the UK's GDP , however this figure was predicted to
plummet by far more than half by 2020 owing to the coronavirus
(COVID-19) pandemic.

In April-June 2021, service industries represented for 80% of total UK economic production
(Gross Value Added) and 82 percent of total employment. Manufacturing contributes for a
significant part of overall exports (45%), manufacturing salaries are roughly 15% higher than the
national average, and manufacturing spends 65 percent of private sector R&D. Owing to the
coronavirus (COVID-19) outbreak, the total contribution of the sector to GDP in the United
Kingdom (UK) declined dramatically in 2020 compared to the previous year. In all, these
industries contributed 89.6 billion British pounds to the UK's gross domestic product in 2020.