Unit 36 : M3
Assess the implications of the legal and financial
aspects that will affect the start up of a business.
,Introduction:
In this task, I will evaluate the implications of
the legal and financial aspects that will affect
the start up of my jewellery business.
I will assess 2 legal and 2 financial aspects and
review the positive and negative implications of
these for my business.
Legal Aspect: Financial
Aspect:
Health and Safety
Act 1974 Personal
National Minimum savings
Wage Bank loan
,National Minimum Wage
The National Minimum Wage is the minimum pay per hour which
almost all workers are entitled to by law, no matter how small an
employer’s business is.
In order to comply with this law, I will have to determine how many
employees I can afford to recruit. I will be required to pay at least
£6.31 per hour to my employees throughout a whole day’s work and
given that I am a small business, I will have to ensure that I will
receive enough income to cover these costs. The more staffs I
employ, I will have to set aside more profits for wages and salaries;
therefore I should limit my number of employees as if I fail to pay
them adequately, legal consequences may arise.
The National Minimum Wage system will enable me to budget my
money for the smooth running of my business. This is because, I will
already be aware of how much I am expected to pay per hour and as
a result, make cash flow forecasts to predict how well my business is
expected to perform.
One limitation linked to this legislation is: given that employees are
aware that they should be paid £6.31 per hour, they will not really be
bothered about performing to their best ability and getting as much
work as possible done as they know that they will obtain this sum of
money anyhow. This can result in an element of slackness and reduce
Assess the implications of the legal and financial
aspects that will affect the start up of a business.
,Introduction:
In this task, I will evaluate the implications of
the legal and financial aspects that will affect
the start up of my jewellery business.
I will assess 2 legal and 2 financial aspects and
review the positive and negative implications of
these for my business.
Legal Aspect: Financial
Aspect:
Health and Safety
Act 1974 Personal
National Minimum savings
Wage Bank loan
,National Minimum Wage
The National Minimum Wage is the minimum pay per hour which
almost all workers are entitled to by law, no matter how small an
employer’s business is.
In order to comply with this law, I will have to determine how many
employees I can afford to recruit. I will be required to pay at least
£6.31 per hour to my employees throughout a whole day’s work and
given that I am a small business, I will have to ensure that I will
receive enough income to cover these costs. The more staffs I
employ, I will have to set aside more profits for wages and salaries;
therefore I should limit my number of employees as if I fail to pay
them adequately, legal consequences may arise.
The National Minimum Wage system will enable me to budget my
money for the smooth running of my business. This is because, I will
already be aware of how much I am expected to pay per hour and as
a result, make cash flow forecasts to predict how well my business is
expected to perform.
One limitation linked to this legislation is: given that employees are
aware that they should be paid £6.31 per hour, they will not really be
bothered about performing to their best ability and getting as much
work as possible done as they know that they will obtain this sum of
money anyhow. This can result in an element of slackness and reduce
