P.4: How the legal and financial aspects will affect the start-up of the business.


Legal aspects of micro-business

























The business plan suggest a partnership to potential investors – because of the stated advantages to both stakeholders - 

with a view to securing appropriate funding. 


Liability Insurance Recommended


  • To accommodate the potential for a customer to be hurt whilst on the micro-business’ premises or if someone’s property

 was damaged whilst using the business’ services. 

  • Helps protect the business against claims by a 3rd party e.g., a customer or employee.
  • An annual or monthly premium will be paid for insurance, this is a fixed cost to the business.
  • Liability insurance is recommended for all businesses. It is a legal requirement for many but not all.

  • Liability includes: Public | Product |Employee.


 Additional legal aspects:


Financial aspects of micro-business


















 

 

Main pricing policy to be adopted will be Cost plus pricing






























Example of Income statement £0,000


Adapted from - Hilton (2023, B) - Legal and Financial aspects


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