Unit 36, P4
Legal aspects and physical resources
As my business is starting up there are several legal statuses that I can have which are;
Legal Aspects; * My legal status: Sole trader * Legal liability: Unlimited liability * Trading terms and conditions: Being owner of the business this means that I can do as I wish and go against the terms and conditions which I have set for my business, for example of a term would be the closure of the shop at 9pm
A sole trader owned company is a business which is owned just by one person. There are several disadvantages and advantages when being a sole trader. Being a sole trader will mean that a lot of the businesses work will be on one person’s shoulders. This means there will be a lot of pressure and stress on the single person. Having privacy within a company is highly important, being a sole trader means that you have full control of the business and its financial incomes, this means that other companies don’t have access to your information. Also there are fewer legal restrictions so this will allow the business to be more flexible. However, hours are generally longer and working alone may mean that they will need more acquired skills for their business. Also there is no obligation when it comes to sharing profits. I have chosen to be a sole trader because as my business is small I feel like it would cause less complications then if I was to start as a partnership.

Partnership
A Partnership is where a business is generally owned by a minimum of two people. The responsibilities of the business are shared between these people these include the profits made. An advantage of working in a partnership it that the decision which need to made are shared and also more ides are then put in to the plans. Also if one person falls sick there’s still a person or people to cover their work. However, the disadvantages of working in a partnership are the risks of conflict and disagreements which may arise, this may cause the team to split up. Finally, they have unlimited liability this means they are responsible and liable for debts.

Limited liability
A Limited Liability is owned by its shareholders in business most of these are either a Co-operative or Franchise, ideally this is the company already being known and its consumers. This ensures money will grow easily in the business without having to put in too much work in regards to try attract the target audience however decision making can be slightly slower and a proportion of profits has to be given back to its shareholders.

Legal liability
The Legal Liability is when organisation fails they will generally owe money to either the bank or someone whom they borrowed from; Sole traders and Partnership businesses are responsible for this and will have to pay back their own debts. This is called unlimited liability; limited liability furthermore is when the business can use their personal assets to pay off their debts; this applies to limited liability.

Trading terms and conditions
Terms and Conditions make it straight forward for the customer as to what is actually being sold to them without causing any future complications. The terms are the price of the product, payment terms and procedures and any essential information that the customer will need when buying the product.

Licenses
A Licence will be required in a new business which is for example a nursing home, night clubs, child minding services, taxis. Generally, when working with children, old people and overall people’s health and safety this is when a licence may be required. My business will need a license to sell alcohol in the restaurant.

Record keeping
Record keeping is a significant part when operating a firm. Financial records need to be kept up to 6 years. A cash book helps keep a record of all money that comes in and out of the company, it contains, cheque payments, credit and debit card payments. Sales and purchase ledgers are all the sales that the organisation makes and receive from those sales. A purchase ledger keeps all records of the purchases that are made by the business.

Resolving problems
Within company it is vital that everyone communicates effectively and shares positive relationships to avoid problems and misunderstandings. However, if there were to be problems that arise, there must be measures put in place to find a solution to these problems. When it comes to the resolution of problems staff should have a trade union, this includes regular meetings where staff have the opportunity to express themselves. The law states there should be a grievance procedure too; this allows the staff again to express their opinions through writing to the other members of staff if they feel they are not being treated in a fair way. The disciplinary procedure outlines what is expected of the staff concerning their behaviour, it is also essential for the staff to know what is expected of them beforehand, this is why employee handbooks are made and given to new employees.

National/local laws
As I am starting up a new fish and chips shop, knowing my legal obligations will assist with the understanding of what laws will affect my business. Compulsory insurance includes the employer’s liability insurance. When employing people to work for my company I will need to have insurance that covers if anything was to happen to them. Other types of insurance that will apply to the shop would be the building insurance; this is for owner’s liability insurance, to monitor the customers visiting the building.

Contracts duties and responsibilities
There are several contract, duties and responsibilities for an employer. Contract of employment, the employer must be provided with a statement within 2 months of working in the business this includes the main terms of the contract.

Health and safety By- Laws regulations
A new organisation must apply the health and safety laws to their business as they are responsible for their employees, suppliers and customers that come into the premises. Managers should ensure they take a risk assessment to learn how to make their premises as safe as possible. Health and safety procedures should also be written down by the business too. By laws are the laws that are made by the local government. The fish and chip shop would have to be checked by the council to asses which laws may affect their business in that specific area.

Distance selling regulations
This regulation covers purchases which are made over the internet, via telephone or mail. This regulation makes sure that whatever the business may be selling/service they provide a written copy of the order to the consumer, and that they can have 7 days before cancelling such an order. For example, if a customer wishes to book a certain time or day for an order then they have time to change it if needed.

E-commerce regulations
This regulation relates to companies that sell or advertise over the internet. The fish and chip shop business will also advertise over the internet; I will need to make sure my customers can have access to the contracts that are created online. If the business desired to build or extend the premises it would be essential to contact the local authority, the planning permission and building regulations state this.
Individuals are allowed to decide if they want out from direct marketing activities for example if over the phone, via email. WEEE regulations apply to companies selling electric items, however as my company does not use this, it will not apply to me however this regulation states that producers have to give money towards the end of the useful life of the product and recycle is required.

Regulations bodies
The regulation bodies observe the standards in different industries. For example, the monitoring of the financial services authority (banks) food standards agency, medicines and healthcare products regulatory agency and office of fair trading.