Rules and regulations

In this part of the task I am going to write about the rules and regulations that may affect a business.

Nowadays, it is very easy and almost everyone can set up a business in the UK. People, who want to set up a business, first need to come up with realistic idea, product or service. To start up they need to have the info about the company name, address, share capitals and shareholder details. People may need a licence for some business activity. Employers and employees should think about the law and regulations that may affect the business before starting work within an organisation. There are many regulations that affect operations within a company. All the employees should be paid equal pay and to be treated equally, no matter their sex, race or disability.

Consumer laws aim to protect people who buy goods and services. When people buy something the law protects the consumer rights. People can get help if they are treated unfairly or when things go wrong. This includes, faulty goods, poor service, problems with contracts or problems with builders. There are various Acts of Parliament, which have improved the rights of buyers.
There are also two main laws that protect consumers who are buying goods:
The Sale of Goods Act applies if you visit the shop.
The Consumer Protection Regulation applies if you are not physically in the shop ( when you buy products online or by email, order by digital television, phone or fax).

There is a criminal law and people are not allowed to do illegal things. A criminal is an individual who has committed an action against the interests of society. There is also a competition law, which aims to ensure that fair competition takes place in each industry. Government believes that greater competition leads to lower prices, better quality, and wide range of goods.

Consumer Protection from Unfair Trading Regulations 2008 stops traders from misleading, behaving aggressively or acting unfairly towards consumers. This includes lying about the features of a product, passing them off as another brand or advertising goods that do not exist. Consumers must report a suspected offence to Trading Standards, which can take action in the civil or criminal court.

CRB checks (Criminal Record Bureau) may be needed for certain jobs or voluntary work - like working with children, or in healthcare. Normally employers aren't allow to ask job applicants about convictions, but for jobs that need CRB check this doesn't apply. The CRB service enables organisations in the public, private and voluntary sector to make safer decisions by identifying candidates who may be unsuitable for certain job, especially children or vulnerable people.

Employment Right Act 1996 - an employee has an employment contract. The main terms of the contract must be in writing and provided to the employee within 8 weeks of the start of their employment. This document is called a ''written statement of particulars''. It confirms the main express terms of the employment contract. It deals with rights that most employees can get when they work, including unfair dismissal, reasonable notice before dismissal, redundancy and more. It says what employer can and can't do.

Sex Discrimination Act 1975 is an Act of the Parliament, which protects men and women from discrimination on the grounds of sex or marriage. The act concerned employment, training, education, harassment and others. The Sex Discrimination Act established the Equal Opportunities Commission whose main responsibilities were to work towards the elimination of discrimination, to promote equality of opportunity between sexes.

Race Relations Act 1976 was established to prevent discrimination on the grounds of race. It covers discrimination of the grounds of race, colour, nationality, ethnic, and national origin in the fields of employment, education, and public functions. Employers must not discriminate against anyone for a job because of their race or nationality.

Disability and Discrimination Act 1995 was established in many countries. Its main aim is to reduce discrimination against people with disabilities.

Other important thing for the people to think about is the national minimum wage. People who start work in a company should know the minimum wage they should get. It is £6.19 for 21 and over, for 18-20 is £4.98, for people under 18 is £3.98 and for apprenticeship is £2.68. People must be at least school leaving age to be entitled to the minimum wage.
Also important for the business is the Data Protection Act. It protects all data information and identity of people who live and work in the UK.

Governments create the rules and frameworks in which businesses are able to compete against each other. From time to time the government will change these rules and frameworks forcing businesses to change the way they operate. Today British business is affected by European Union (EU) regulations and directives as well as national laws and requirements.

Funding and financial issues

Some funding and financial issues may affect the setting up of a business. Some people need financial help to start up their business. Some may get a loan from the bank, others may borrow money from friends or even sell their own belongings. They might also use their own savings. If the company is a LTD the owner can sell share to someone who can give enough money. People who want to set up a business may get help from business grants. There are many local and national grants across the UK which can help people to set up a business. The UK governments help the different funding programmes.
Depending on the purpose of the businesses, each of them can get money using different ways. The business may sell different products or provide service to customers. Many businesses get money mainly from advertising. Nowadays, we see many websites which advertise other companies and businesses. Also some businesses do business 2 business. This describes transactions between a manufacturer and a wholesaler or between a wholesaler and a retailer. All depends on different businesses how they will get money.