Types of Companies and Their Working

BMP3002
Business in Practice
Assessment 1
Types of Companies

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Section 1: Types of companies and how they work .......................................................................3
Small business..............................................................................................................................3
Micro business..............................................................................................................................3
Medium size business...................................................................................................................4
Large size business ......................................................................................................................4
Section 2: Different companies which includes sole trader, limited liability and partnership........5
Section 3: Business structures and external factors.........................................................................7
Organisational structure that affects productivity of organisation...............................................7
Political Factors............................................................................................................................8
Economic Factors.........................................................................................................................8
Social Factors...............................................................................................................................8
Technological Factors..................................................................................................................8
Legal Factors: -.............................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
Books and journals.....................................................................................................................10

INTRODUCTION
Company is a legal entity formed by a group of individuals within a voluntary association
it is an artificial person and they has a separate legal entity. It is identified that different types of
companies are existing in business environment (Mittal, 2020). TESCO is a chosen business firm
in this report. It is a multinational firm of British that trading in global market. It was founded by
Jack Cohen in 1919 as a tea selling group. Currently firm is dealing in number of countries in
order to sell its product within retail industry. Report is discussed about the different types of
companies and their working. Along with this, it also includes identification of companies from
the perceptive of sole traders to cooperatives and Limited Liability Partnerships.
MAIN BODY
Section 1: Types of companies and how they work
Small business
Definition
Small business is a privately owned business cooperation, sole proprietor, partnership,
etc. Number of employees is less as compared to other types such as medium and large scale
business. Employees' number in small business is 1 to 100. Capital should be needed in small
business is between 1.5 lacks - 2 lakhs.
Characteristics
 It focuses on achieving goals is considered as a characteristic of small business firm as it
helps in achieving business function. Successful small business owners are good at inspiring people who are around them
whether that are clients, employees, business partners, suppliers, and family members.
This requires confidence, enthusiasm, and passion.
Example: CafePod Coffee Co.
Micro business
Definition
In micro business, it considered small business framework which have between 1 to 9
employees in organization. Businessman invests fewer capital in business and they earn revenue
approximate $25000. A micro business is freelancer, based on contract, graphic designer, home
based business etc.