Understanding Different Types of Companies and Business Structures

REPORT WRITING ON BUSINESSES

Table of Contents
INTRODUCTION...........................................................................................................................3
Section 1 Understanding the different types of companies and their working...........................3
Section 2: Different companies from the sole traders.................................................................5
Section 3:- Different business structures and the external factors which affect the business.....6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment- It is the collection or sum of the external and internal factors
such as customer need, their expectation, supply and demand, employees, management, owner,
activity by government, technology, social trends, market trends, innovation etc. The business
environment word indicated the aggregation of the people in the organisation where they gives
the outstanding power to the industry production. They are consisting of the macro environment
factors which effect the business organisation. This report is based upon the evaluation of
different types of companies from the sole traders and the understanding of the different business
structure and eternal factors which affects the business.
Section 1 Understanding the different types of companies and their working
Micro business- These are the business which are smaller in size and having nor more than 9
employees. They are having a balance sheet and having turnover is limited to a certain amount
say less than 2 million (Vargo and et. al., 2017).
Characteristics- They are having the lower revenue and profitability. In this small scale
business revenue is always lower than the companies which have the larger scale in business.
They are allowed to show the revenue in set of 21.5 million dollar per financial year. They are
having the smaller team in context of employees. They generally having the small market are for
the business. These types of business generally having the sole or partnership business.
Example- Issoria is one of the micro business which was launched in 2016, it is rapidly in the
way of disrupting in the change of Management consulting Industry. Its founder is Ibi Thomson.
The company has retaining the ow cost base, agility and the speed of an SME. Its long term
ambition is to serve half of the world's largest company over by the year 2030. The company has
already recovered its 178% of the growth.
Small business- It is the type of business which re having on the small scale and which involves
the less capital investment, having fewer machines and less number of the labour or employees.
Small business are either having the retail operations like medical stores, bakeries, small
manufacturing units, grocery shops, tradespeople etc. These type of business are generally
serving the local communities by their business (Hausberg and et. al., 2020).
Characteristics- They are having the ownership which are the single owner which can also be
said as the sole owner. Here, all the management work is controlled by the owner, They are