Law for Business Managers
Part 1
Private Limited Company
A group of 20 architects who wish to establish a small business to attract property developers can form a private limited company. This is the most suitable business medium since it aims to create a small business; the private limited company is meant for a small business, which shows that the medium fits the group appropriately. The members have various advantages that they can get by using this medium. The responsibility of the members in the company will be limited to the number of shares each member of the group holds. If the group does not wish to have their shares known, the company protects them since their shares cannot be publically traded. The number of group members is also appropriate to form a private limited company since the minimum number required is two and a maximum of 200 members (Hannigan, 2017). Each member in the group will also be protected in case of loss, the personal assets of the shareholder will not be at risk, and however, shareholders will be required to sell their assets for payment.
The small business established through the medium will also have advantages over public companies. The private company will not require or need to keep the index of its members, whereas the public company must retain the index of its members. With a large number of the group, running the company can be hectic when each member is required to sign or be notified in small decision making. Therefore, the group can use limited private medium since it allows only two directors to get the company started. One of the advantages the group will enjoy through a private limited company is the continuity of the company. The company cannot be affected by the change or death of the shareholder or director. The company can only cease through liquidation and administration. Therefore, a private limited company is the most suitable medium option the group can adapt because it favors their interest in having a small business.
Partnership
The most appropriate medium for three friends who have just qualified as beauticians is a partnership. The medium is flexible for people who have a small number and know each other. Since they are close friends, they lack trust issues: thus, they can be comfortable when forming a partnership. A partnership requires a minimum of two people; therefore, the number of the three friends is enough to come up with the partnership. For tax purposes, the partners will be treated the same as sole traders. The three members will have the opportunity to run the business with an equal responsibility unless stated otherwise in the partnership. Even though it is not a must, partners can have a range of agreements that are stated in the partnership. Considering the three friends know each other well, and they have the same profession, the partnership is the most appropriate medium.
Some of the advantages members will enjoy from the partnership are such as capital. Members can contribute their money to allow business flexibility. There is also a less red tape; members are required to provide less information for registration of the partnership. The combination of knowledge between partners will also increase the skills on how to manage the business. The partners will also have the advantage of the flexibility of management; the partners are not interrupted by shareholders. The partners have a shared responsibility, which reduces the pressure and weight of running the business. The shared responsibility will allow the partners to carry out the business in the most appropriate manner. The partners also will have the advantage of making proper decisions. Shared ideas among the friends will ensure that they conclude with the most appropriate decision. The partners will face some challenges such as disagreement and taxation, which are common in partnership. However, this does not limit the friends from having the partnership. The medium favors the tree friends as beauticians; thus, they should consider collaboration as the appropriate medium to carry out the business.
Sole Proprietorship
The most appropriate medium for an up and coming musician is the sole proprietorship. Most of the musicians prefer being independent of how they run their careers since they depend on their talent. Since the musicians depend on themselves to earn except for sponsorships that may come as a result of the hits songs, the musician should consider working alone, thus becoming self-employed. This will allow the musician to own the business and have complete responsibility for every action. Such a business can be profitable since the owner will be able to enjoy the profit alone. Once the musician has paid the required tax and employee wages, the remaining amount belongs to the owner. There are various advantages’ that are associated with sole proprietorship (Khan, 2017). Some of these advantages include control; as an independent musician, one will be able to know when to compose to a new song and when to release the song, thus avoiding the pressure.
The musician will also have improved fan services, and the musician depends on people that support his or her music. Since the musician understands the audience better, he or she will be able to handle the fans properly by delivering what the fans expect from the artist. The client will also have a small red tape; this means that the client does not require much registration to start the singing business or career. Since music is considered to be intellectual property, sole proprietor provides the singer with private data advantage. The singer can decide to keep the song out of the public until the moment he or she decides to release the public. The singer also is in control of the working hours. As a musician, it can be hard to predict the amount of time one will performing or how long the shows will take; this makes the musician to be flexible and adjust his or her working hours to fit the hours that are most appropriate for his or her fans. Therefore, up and coming musician should consider using a sole proprietorship medium.
Part 2
An individual doing paid work in the UK falls into three main groups of work that include an employee, a worker, and self-employed. Most of the people especially the employers are uncertain between workers and employees; that is the difference between the laws that govern them. Standard law tests determine these differences. In the Taran case, there is a violation of self-employment rights. According to the advertisement agreements, Sleek Driving Ltd. was not looking for the employee, rather its self-employed people. Therefore, this means that Taran is not an employee of the company. Taran is responsible for himself, and he owns everything that is required to work; this shows that he is fully a self-employed person. However, considering how the company changed the rules of the advertisement, Taran is viewed by the company has an employee. The company has imposed various restrictions on Taran, thus limiting his self-employment rights. In relevance to the advertisement, Taran is entities self-employment status.
As a self-employed person, Taran should enjoy no statutory employment rights. Employment Law does not protect self-employed people in most of the circumstances because they are their bosses. However, Taran should know some of the laws that govern him, such as protection of health and safety and security against discernment. Also, his rights and accountabilities are determined by the contract he has with his client. Working with the company which takes the client position in the Taran scenario, a written agreement is very important (Haines, 2018). Therefore, Taran should ensure that there is a written agreement in place; Employment Tribunal uses a written agreement to determine whether someone is employed or self-employed. A written agreement shows the requirements needed to work with the company and the rules that cover the contract. In the case of mistreatment by the company, as in the case of Taran, he can use the contract agreement to report the company to the authorities.
Taran is entitled to own control; he should be able to decide when to work that is days, hours, and holidays. This is contrary to what Taran is experiencing while working with the company. According to the advertisement seen by Taran, it was clear that he will be able to work hours of his choosing, which is right according to self-employed individual’s rights. However, the company has forced Taran to work for a minimum of 30 hours a week, not taking time off without notifying the company and attending. These actions are illegal since they go in contrary to the actual agreements of the contract. Taran can report these abusive acts by the company since they defy his rights. According to the law on employment, a self-employed individual should have his amenities and gear. Self-employed individuals should be able to provide their gear and resources to do their services most appropriately. This was clearly stated in the advertisement; however, the company has violated this law by requiring Taran to wear their uniform with the company’s logo. This is not appropriate since Taran is not supposed to wear or use any company’s equipment. Taran should avoid these instructions since they defy the contract and employment status law.
There are other employment status laws that Taran should consider while in contract with the company. Mutuality of obligation is a law that defines the state in which an individual is expected to work and if he or she is supposed to work. According to the contract advertised by the company, the individual is not required to work under any obligations. However, the company fails to respect this law by requiring since they have issued obligations that Taran must work under while in the contract. Taran should understand that he is not required to work under any obligation that is the choice of clothes and working hours. Taran should be able to decide what to wear and hours, which he wishes to work as per the contract agreement. Taran should also understand the integration level with the company (Cruz, 2017). This will help him in understanding the influence the company has on his work and how they dictate the contract agreement. Taran should understand that he is not obligated to any role; therefore, he neither should nor perform the same roles as those performed by employees.
A self-employed person should be reliable for financial risks that exist in given work. They are responsible for the losses that arise from their work; therefore, the company should not fail to offer Taran work for one week since he is supposed to be reliable for his actions. This means that, if Taran fails to report work, he is supposed to suffer losses for his actions of not working. However, this is different from what the company is doing; they have taken the role of decision making for Taran, which defies his rights. Another factor that Taran should be aware of is exclusivity. This means that Taran is not limited to work for his client only. Thus he can work for more than one client. Taran should ensure that he has exercised all his employment status rights at law, and they are not violated.
Since Taran is self-employed, he can choose to stop working for the company and find other contracts that are adhering to the terms offered. Taran should consider a contract that is not limiting him in any manner. The company also should adhere to the terms and conditions listed in the advertisement. Taran should not allow his employment right status be abused, as in the case of Sleek Driving Ltd. Taran should adhere to these advices since they are important and enlighten an individual on various laws that are set for self-employed people. Taran should