The Structure of Business

THE STRUCTURE OF BUSINESS
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Contents TOC \o "1-3" \h \z \u Question One: Structure of Business PAGEREF _Toc76593365 \h 3a) Legal statuses of businesses PAGEREF _Toc76593366 \h 3b) Sources of Finance PAGEREF _Toc76593367 \h 16Personal savings PAGEREF _Toc76593368 \h 16Loans PAGEREF _Toc76593369 \h 17Hire purchase PAGEREF _Toc76593370 \h 17Question Two: Sectors of the UK Economy PAGEREF _Toc76593371 \h 18Primary Sector PAGEREF _Toc76593372 \h 18Secondary Sector PAGEREF _Toc76593373 \h 19Tertiary sector PAGEREF _Toc76593374 \h 20Question Three: HR Policies and Importance PAGEREF _Toc76593375 \h 21Health & Safety policies PAGEREF _Toc76593376 \h 21Equality and Diversity policies PAGEREF _Toc76593377 \h 22Performance Evaluation Policies PAGEREF _Toc76593378 \h 22Disciplinary policies PAGEREF _Toc76593379 \h 23Reference List PAGEREF _Toc76593380 \h 24
Question One: Structure of Business
a) Legal statuses of businesses

Public Limited Company

Registered Charity

LTD

Strengths

* Raising capital by selling shares – a PLC has an advantage since it can raise share capital which can be very beneficial for the organization, especially if a renowned exchange registers it. Furthermore, anyone can invest in the company since the shares are sold in public. This allows the organization to raise a large amount of capital such as investment from mutual funds, investment funds, etc.
* Finance opportunities – A PLC gain rely on numerous sources of income. A company that has been listed on the stock exchange is regarded as more creditworthy. As a result, financial institutions and banks would be willing to offer loans. The company can also negotiate for favourable loan repayment and interest rates.
* Spreading risk- the presence of shareholders means that the company spreads the risk to multiple shareholders who have shared in the organization. A large number of investors is much better than a single or two angel investors.
* Prestigious confidence and profile – a PLC enjoys adds prestige. The business is viewed as more trustworthy since it is a public entity, and this also increases the chance that it can get attention from investors and the media. In other words, a PLC means the company can get free publicity in some cases, especially when it is recognised for its services or as a brand. The confidence and credibility arise since the company operates within stricter legal regimes when compared to private companies. A PLC also has more transparency and higher capital share needs. All these variables can influence the behaviour of customers, shareholders, and business partners.
* Exit strategy – A PLC provides founders with more options if they choose to exit the business. The higher visibility and transferability of shares of the business and its performance means that potential investors would be happy to take over the organization.
* Shares – the shares can also be transferred if they have been quoted in the stock exchange. A PLC does not bound customers to the company since they can choose to sell their shares. Since the transferability of the sh...