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Assessment Type (and weighting)Essay (50%)Assessment NameBusiness model reportAssessment Submission Date25/04/18Learning Outcomes Assessed:LO1: Recognise and understand the main concepts, principles and rules of the English Legal System, Contract Law, Tort Law, Company law and Employment law. Also illustrate communication skills, organisation planning and initiative.LO2: Explain the law in regard to sources of law, business transactions, the nature and management of a company, the concept of business liability in negligence, the vicarious liability of an employer and also individual employment rights.Assignment 1: Produce a 2000 word report on the following:Scenario:You have recently been appointed as an intern by a company called ‘Sorted Business Solutions’, which provides business adviceservices to small to medium businesses.Sorted Business Solutions are committed to offering their clients an excellent service.Freida and Susan have successfully run an internationally themed café in Cornwall for three years, which has been prospering and of which they are very proud. They would like to expand their premises and employ permanent staff and hope ultimately to open other cafes throughout the South West of England.They are uncertain as to whether to continue to set up formally as a partnership or to set up a limited company and would like to know which would be better for them and their business. They are also thinking of renaming their chain of cafes ‘Super Starbukks’.Write a report advising Freida and Susan with regard to the following:• All implications involved in expanding their business and changing their company name;• The legal process for setting up a limited company as compared to a partnership;• The management of the company;• The Tax implications;• The Legal requirements with regard to employing permanent staff;• The Duty of care that they owe their customers and staff members;• Any other issues they may need to consider.Guidance pointsPresent in report formatCoherently articulate and logically structure your pointsUses appropriate arguments to evaluate the theoretical models.Logical recommendationSources should be accurately cited in the text and a range of appropriate references cited in reference list in the correct style.Your report should include:1. Overview; The main types are of business modelsFor each model include:• Legal requirements• Registration or incorporation procedure• Strengths and weaknesses2. RecommendationsBased on the needs of the client provide clear and justified recommendations.3. Employing staff for the first timeIn this section provide your client with information on;The Equalities Act 2010• HM Revenue and Customs (HMRC) by registering as an employer• National Minimum Wage.• The legal right to work in the UK.• Employment Rights Act 1996• Written statement/ contract of employment if you’re employing someone for more than 1 month.• DBS check (formerly known as a CRB check)• Vicarious liability of the employer to employee• Employment insurance• AppendixInclude company registration documentsSample partnership agreementSample written statement/contract of employmentHM revenue registration formsSummary of relevant legislation