Types of Companies: Micro, Small, Medium, and Large

BMP3002
Business in Practice
Assessment 1
Types of Companies
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Contents
Introduction 2
Section 1: Different types of companies and how they work
P
Section 2: Different companies from sole traders to cooperatives
and Limited Liability Partnerships p
Section 3: Different businesses structures and internal factors
affecting business p
Conclusion p
Reference List p
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Introduction
There are different type of companies operating their business services affected by number of
factors prevailing in business environment. It is essential for them to emphasize upon each in
every changing factor in order to develop strategies against them (Anan, 2021). Present report
has been conducted on Tesco which is a large multinational organization operating their
business services in retail industrial sector. This report is conducted on different type of
companies along with the factors travelling in business environment. For this pestel analysis
is conducted in this report.
Section 1: Different types of companies and how they work
Micro business:
Micro business is basically a small business which is operating their operations on a very
small scale. In this organizations there are fewer than 10 employees including the owner of
business. Some of the examples of micro business companies are freelancers, independent
contractors and small organizations (Ali and Anwar, 2021). Furthermore, some example of
micro business companies includes freelance graphic designer, solo consultant, home based
business and small suppliers. It has been identified that is the business are mainly finance by
micro credit or a small loan and add value to local economy.
Small business:
Small business companies will include function of business at small scale that include less
number of labors, capital investments and fewer number of machines. It has been underlined
that these industries mainly produce services and goods on small scale. Local bakery,
manufacturing facility with less than 500 individuals are some of the example of small scale
business. In this business companies are playing important role in increasing employment and
turnover of country with less than 250 employees.
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Medium size business:
Medium size companies is defined as those organizations who is operating the business
services on medium scale. They are basically family owned and managed businesses. It is a
business segment where ownership is separated from management (Amaechi, 2021). These
enterprises are mainly those organizations which is having 100 to 999 employees.
Furthermore, it has been identified that engineers, transport companies, manufactures,
wholesaler, recruitment service provider are medium sized business organizations.
Large size business:
Large scale business company’s employees more than 250 individuals. These
business organizations are conducting their operations at large scale and offer high number of
employment opportunities and playing major role in contributing in gross domestic
production of country. Furthermore, it has been identified that these corporations are
conducting their role with large scale of budget investments and flexible with technology
spending. General Electric, JP Morgan Chase, Google, Microsoft, Apple or some of large
scale organizations.
Section 2: Different companies from sole traders to
cooperatives and Limited Liability Partnerships
Sole trader business:
Sole trader business mainly a simplest form of business structure in which there is a sole
trader who are responsible to manage business and are self-employed and have responsibility
of all profit and losses. This type of business structure is simple to setup and operate and few
recruiting requirements (Budiman, 2021). However, it has been identified that in this there is
unlimited liability and person have little opportunity for tax planning. Some of the example
of sole proprietor business includes general store, beauty parlor barber shop, plumber
electrician and more.
Partnership:
Partnership organizational is an agreement in which individual that are known as
business partners have an agreement to initiate a business which is in their mutual interest. In
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