Types of Companies: A Comprehensive Overview

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
2
Section 2: Different companies from sole traders to cooperatives
and Limited Liability Partnerships 4
Section 3: Different businesses structures and internal factors
affecting business 6
Conclusion 8
Reference List 9
1

Introduction
The objective of this review is to provide a quick overview of the many sorts of
businesses available in competitive terms. Using a variety of examples, the paper
examines how businesses are classified depending on their nature and
responsibility. The research also emphasizes the importance of organizational
structure, highlighting the two most popular types. There are many distinct sorts of
businesses that are founded, each with its own structure, purpose, organization, and
obligations. Marks and Spencer, a worldwide brand with headquarters in London,
United Kingdom, was chosen to complete the below report.
Section 1: Different types of companies and how they work
Micro Business
This is a sort of business where there are no more than ten employees. This
is a relatively small corporation with an annual turnover of less than £2 million and a
balance sheet not more than £316,000. To conduct out almost all of the duties and
functions of this type of business, the owner must invest a very modest amount of
funds. These micro-businesses, according to statistical experience, add to the
overall economy. Microbusinesses are essential for the country's long-term future
prosperity. It also helps the economy by focusing on underserved developed and
developing countries. This type of microbusiness is usually launched with the same
amount of wealth as the previous one, and it is administered, operated, and directed
by the same person (Hoffman, 2020). It has an economic benefit by ensuring social
stability across the United Kingdom's regions. The example are freelance work,
architecture firms, plumber and so forth.
Small Business
This is a firm in which the quantity or capital committed by the owner is very
little, yet it has more than one comparison with a tiny size firm. According to the
Companies Act, 2006 this type of business does not employ more than 50 people
and does not employ fewer than ten. The company's annual revenue is less than £10
million and total of balance sheet require not to exceed £ 4 million. In terms of
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