Form the Business Organisation There three types of private business organisation which the sole trader, the

partnership and the registered company. All these types are run by private individuals not by the state. The Sole Trader: This means going it alone with a one-person business Keenan & Riches (1998). In other word, the business is control by one person only. People who are form business organisation can take all business profits but if the business is losses and has the problems, he/she is fully responsible toward it. Every type of business organisation has its own advantages including the sole trader. To start the business, there is no strict formalities to follow by the sole trader as compared to other types of private business organisation which the partnership and the registered company. In UK, to form company, the promoters need following a few processes, complete three types of forms and also complete the accounting information before applying to register with the Registrar of Companies in Cardiff. One of the most disadvantages that the sole trader need to face is financial difficulties. It is happen when economy in UK is unstable. The well companies are difficult to find business finance in this situation and for the sole trader, it is more suffer. Usually, the banks are not confident the sole trader and they are extremely wary to lending the business finance because the sole trader is small organisation and its performance in the business cannot convince the bank. Other than that, the suppliers are unwilling to give same credit term and discounts to the sole trader as they would offer to other type of business organisations. If this problem is not prevented by good way, the sole trader will be death. The Partnership: The Partnership Act 1890 express that a partnership is .the relationship which subsists between persons carrying on a business in common with a view to profit Laipeters & Co (2007). In other words, someone who is interested wants to share with others but does not want to take all full responsibility, the partnership is the best for them. Between the partnerships, they will share profits and responsible the problems together between partners as with the sole trader. Moreover, it is necessary for the partners to drawn up a contract which called a Partnership Agreement and this provides what was agreed about the business among partners. This agreement can applied by verbal and conduct. In the partnership business organisation, it is allowing to get the resources and expertise from the partners. As compared to the sole trader, it is only one owner and no additional resources except from itself. The partners are contributing the capital; to attract more capital the partnership can admit new partners. However, this method is limit because the Companies Act 1985 restricts that the Partnership is maximum of 20 people but this limit is not applied to some professions such accountants and solicitors.

The partnership cannot to issue share capital such the company in order to raising finance securities. There some security needs to consider which more detail in rising of loan capital and method. The contractual promise between bank and borrower to repay the loan is more than promise can be given. About loan capital, the partnership is not given a floating charge over its assets like the company. The partnership can only mortgage its business premises, fixed plant and give its personal guarantees. It is because the partnership is subject to bills of sale legislation which in effect to stop it. The partnership also can mortgage its own private property. Forming the Company. The Registered Company: The registered company by law view is itself as a separate entity from the people that comprise it. It is divide by two types which Public Limited Company (PLC) and Private Limited Company (LTD). The PLC is limited by shares and it can be offered to the general public. Instead LTD, it is limited liability and the shares cannot be offered to the public (CA 2006 Sc 755). As compared to other business organisation, the entrepreneurs should form a company. It is because the company have limited liability that can prevent people who are making up the company. The limited liability is any debts of the company is not required to pay who are make up the company but it is belong to the company itself. In other words, the liability of the members of the company is limited by share. The obvious advantage of limited liability is if the member have paid the full nominal value, they cannot asked he/she to pay more even though the company is suffered with debts and it is also cannot pay its creditors in full from the finds that are left. For example, Marry owns 150 shares issued at 1 each by Toys plc, and then she paid 150 to Toys plc. Suddenly, the company need to pay the debts and the funds is not enough. Toys plc cannot ask Marry to pay more than her remaining share which 50. Furthermore, the shareholders assets are remain which safe from loss. Other than that within limited liability, between the company and shareholders has legal personality which there separate entity where cannot be combine. But if the company and shareholders wants to combine, it will be as members. When this is happen, standard between the company and shareholders is same. To compare to other form of business organisation, the company has a great advantage in raising business finance because its have ability to issue share capital. It can be issued by variety of different right in terms such as by voting. Other than the company can raise the capital by loan capital which it can give a floating charge to its assets to substantial lender such as a bank. The bank will review all of the value assets of the company before giving loan. To form a company, there a lot of formalities to follow as compared to other business organisation and the formalities is continues as long as the company is not death. Before to form the company, the promoter need to keeping registered information to up to date Registrar of Companies and then submit the annual return and account to Registrar of Companies. In the time of company running, it must holding board and general meeting and keeping minutes.

A company is also impervious to death. The shareholder is become main reason why a company is impervious to death. First, the duty of the shareholders is to inject capital more and more in order to prevent the company from collapse or death. The shareholders are also responsible to manage the company movement to be successful in business. If they are perform their responsible with good performance, the company immune to death. Second, the company is impervious to death because the company has perpetual succession. Within this the company is impervious to death and can continuing its business. For example, Marry and John are members of Toys Ltd, John becomes bankrupt. The executors must sell Johns share to purchaser if they want pay by cash for them. From this situation, the company capital is unaffected and the company is also not to be dissolved. However, there some problems of the company need to face especially the small company. The problem is difficult to find cash which capital and weak in managing the cash flow. Then the company is infecting leadership where the leader is not concentrate to be a leader but more to as a manager. When the leader is not perform well as the leader, the plan of company is vague and indirectly the company cannot achieve its objectives. There some of steps and the documents that need to complete to form a company. To incorporation of a company, first step must be taken by promoters is register with Registrar of Companies in Cardiff. The promoters must send certain documents which The Memorandum of Association, the Articles of Association and Form IN01. Lastly, if the Registrar is satisfied with the contents all of this documents it will issue a certificate of incorporation