| UNIT 36 STARTING A SMALL BUSINESS
| UNIT 36 STARTING A SMALL BUSINESS
Proposed legal structure of the business
Local licenses and regulations
The implications for the business in legal aspect (M3)
The implications for the business in financial aspect (M3)
For this task I have been asked to describe the legal and financial aspects that will affect start-up of the business Proposed legal structure of the business
TYPES OF BUSINESSES
sole trader- is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business. The owner receives all profits and has unlimited responsibility for all losses and debts. Free From is my business and since I am the only owner this means it is a sole trader some of the challenges that comes with being a sole trader or starting up my own business will be finances, as a sole traders often it’s difficult to raise finance to fund my own business. Sole traders’ may also struggle with expansion in the future. Another challenge when it comes to starting up my own business would be decision making, all decisions must be made by the sole trader. There is no room for help by others. And so the success or failure of the business rests on one person. Partnership- A type of unincorporated business organization in which multiple individuals, called general partners, manage the business and are equally liable for its debts; other individuals called limited partners may invest but not be directly involved in management and are liable only to the extent of their investments. Unlike a Limited Liability Company or a corporation, in a partnership each partner shares equal responsibility for the company's profits and losses, and its debts and liabilities. Plc. - A Company whose securities are traded on a stock exchange and can be bought and sold by anyone. Public companies are strictly regulated, and are required by law to publish their complete and true financial position so that investors can determine the true worth of its stock (shares). LEGAL ASPECTS
Discrimination law- Discrimination refers to the treatment or consideration of, or making a distinction in favour of or against, a person or thing based on the group, class, or category to which that person or thing belongs rather than on individual merit. Discrimination can be the effect of some law or established practice that confers privileges on a certain class or denies privileges to a certain class because of race, age, sex, nationality, religion, or handicap.
This is a law that my business has to comply with, as we have seen workplace discrimination involves an employer treating a particular member of staff differently for unjustifiable reasons. The most obvious types of discrimination that spring to mind are racial, sexuality, race, age, nationality, religion, or handicap. As an employer law requires me to treat every employee equally e.g. The Sex Discrimination Act of 1975 prohibits the treatment of a woman or a man any differently or less favourably than the opposite sex. For instance, where a male and female employee with the same qualifications occupies the same or similar positions, paying one less than the other for no justifiable reason is discriminatory.
Data protection- During the second half of the 20th century, businesses, organizations and the government began using computers to store information about their customers, clients and staff in databases e.g. names, convictions, credit history etc. With more and more organizations using computers to store and process personal information there was a danger the information could be misused or get into the wrong hands. A number of concerns arose: who could access this information, how accurate was the information, could it be easily copied? In 1998 The...
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