Mukhtiar Singh C05873

Mukhtiar singh c05873 DEVELOP AND UPDATE LEGAL KNOWLEDGE REQUIRED FOR BUSINESS COMPLIANCE THHGLE20B

Introduction

Name of the business: The lamb restaurant Type of business: Hospitality industry. Type of ownership structure: Sole trader

Explanation: I have designed a business proposal about opening a hospitality venue And decided to open a restaurant. The ownership structure I have decided is sole trader. As a restaurant is small operated business and can be easily run and managed by a single owner without having any partner to share with. However, I would need some employees to run the business. The reason behind choosing such business structure is that sole trader is the most simple and common form of conducting a business and there will be only one owner who is to keep all profits and offcourse losses as well. He is the only one who will manage all the things solely. Moreover this business structure is the simplest structure to establish a business. The only thing he needs to do is register a business name and fid a right premises to open a restaurant.333554024080.there is no legislation that specifically applies to sole trader as there si for partnerships and companies.

ADVANTAGES OF OPERATING A BUSINESS AS SOLE TRADER.  Operating a business as a sole trader is not complex thing as other structures are. There are no heaps of paperwork to do, no lengthy documentation to prepare as in partnership. All that is needed is a place from which to operate.  Other thing is there would be only person to control and manage all the operations of business. He can decide working hours of business. He can choose his employees and do budgets. There would be no conflicts regarding these issues.  The main advantage is as I sated earlier he is only one to keep all the profits. He doesn’t have to share it with anyone at all.  Other hing is tax. If the profits are low then taxes would also be reasonable. As the profits increases tax will go the same way.  When a sole trader have to decide to terminate the business. He does not have to comply with particular formalities. He can simply do it as it is convenient for him.

DISADVANTAGES OF OPERATING A BUSINESS AS SOLE TRADER.

 If the business grows further and become busy the burden of management comes on one person and may place enormous obligations on the owner.  Capital is the name given to the money a trader raises and uses to start a business. A sole trader is limited to the amount of money he can raise and risks limiting the expansion of business by the amount of money that is available.  Sole trader is solely liable or responsible, for the debts that the business incurs. If the business is unable to meet its debts, the sole trader is personally Responsible for those debts and can have his personal assets sold to clear them.

Assessment two: case study

There are some essential elements, which are required to make a contract legally valid. 1. Serious intent 2. Offer and acceptance 3. Consideration 4. Voluntary consent 5. Capacity of parties 6. Lawful purpose

Case study I : Customers walk in to a bottle shop. Tried to buy some items. Then due to some reason he went away without buying them. Items were already on cash register. The attendant is not sure about the items, which he took, mistake fully. So no payment had been made. Later when the customer was enquired about the payment, he refused.

So in above case study, there is no valid contract between two parties and even the attendant don’t have any proof against customer so no legal action can be taken here. The only thing, which could be done, is to settle on their own.

Case study II : In this case study there has been a valid contract between two parties. Both of the parties have all the essential elements to make their agreement lawfully valid. Suppliers sent a letter of offer to the Steve and they have agreed verbally on phone and Steve had been asked to sent a written acceptance but till the supplier receive any response he sold the items out. There could be some legal remedies against supplier because he should call Steve before selling the goods because they have valid contract between them. So that Steve could have made some other arrangements to send the acceptance letter by some other mean. So supplier have arrange same goods for Steve at same price or other wise there could be some legal action against the supplier. Because, he is the beacher.

Case study III In this case study, there has been a valid contract signed between both parties. Steve has signed finance contract with finance company. But as Steve did not read the contract before signing it. He thinks he has signed for wrong terms. Because rate of interest they fixed before is different from actual and was higher by 2%. So Steve should talk to the repetitive of finance company about the terms. But legally he cannot do any thing because he has already signed the agreement. So there is no legal remedy for Steve. Or may be he can refuse finance.

Discuss how you will ensure any changes that occur are

appropriately incorporated into the operation of your

business.

Ans: - The following methods can help us to ensure the changes that

may occur, are incorporated appropriately in the business:-

Organising the staff meetings: -I will organise the staff meetings to

communicate the changes to the staff. This can be done even in a

small informal gathering is well.

Training to the staff members: - I will provide training regarding the

new policies and procedures that need to be followed. This training

will be provided to the staff by the buddy system.

Provide appropriate signage: - I will provide signage and boards in

the premises.

Incorporating the changes in the policies: - I will incorporate the

changes in the current policies and will be making the new compliant procedures. Then I will communicate those changes by organising the

staff meetings.

Providing the handouts:-I will be providing handouts to the staff to

communicate the changes of the legislation.

By leading by example: - I will be leading the staff members by

example and will be demonstrating them how they need to perform a

certain work operation.

Discussions: - There will discussions with staff members casually in

workplace to keep them in touch with the up to date information and

their current knowledge level can be tested by this way.

CONCLUSION

In this chapter I have learnt how to develop a legal knowledge when

starting a business. In Hospitality industry where every piece of

legislation and new food act is important and without these legislation

and acts one may not operate a business. In hospitality industry where food legislations and acts are so strong so, it’s better to follow all things

otherwise many problems can occur.