Types of Companies and Their Impact on Business Performance

BMP3002
Business in Practice
Assessment 1
Types of Companies
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Table of Contents
Introduction........................................................................................................................2
Section 1: Different types of companies and how they work.............................................2
Section 2: Different companies from sole traders to cooperatives and Limited Liability
Partnerships.......................................................................................................................4
Section 3: Different business structures and external factors affecting business.............6
3.1 Identification of different organizational structures and explaining how does
organizational structure affect business productivity.....................................................6
3.2 How different external factors affect the performance of a business – PESTLE
Analysis..........................................................................................................................7
Conclusion.........................................................................................................................8
Reference List..................................................................................................................10

Introduction
The aim of this report is to examine different types of companies and how they
work. This involves discussion regarding micro business, small business, medium size
business and large business companies. This report further discussed about different
companies on the basis of sole trader, partnership, limited liability, public limited and
public limited companies. This report will further discuss about organizational structure
and their impact on performance of organization. This report further discussed about
Pestle analysis of Rolls-Royce, British luxury automobile maker. Company was founded
in 1998 and is headquartered at England, UK.
Section 1: Different types of companies and how they work
Micro business:
Microbusinesses is defined as Small business administration as those that have
only 1-9 employees working together within organization. For Example- Vermont is
based on the micro business as one that employs fewer than 5 individual people. It is
only generating lless than $25,000 in annual revenue. A growing number of states
associated the microbusiness with cannabis related business for licensing purposes.
The characteristics of Micro business employ smaller team of employee than
enterprises, running entirely by single individuals or small teams.
Small business:
A small business is a kind of organization that is primary owned and consist of 50
or a smaller number of employees. Small business does not have annual turnover more
than £8 million (Bartlett and Morse, 2020). But this turnover or revenue completely
depends upon the area in which they operate and their target market segment. Small
business plays a vital role in enhancement of overall economy of a country. They have
access to limited area and do not have offices at many locations. In fact, some of the
small size business operate only from one location. As most of these small businesses
are privately owned so they are organized as sole proprietorships, partnerships or