Types of Companies: Analysis and Discussion

BSc (Hons) Business Management with
Foundation
BMP3002
Business in Practice
Assessment 1
Types of Companies
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Contents
Introduction...............................................................................................................................3
Section 1...................................................................................................................................3
Analyze different types of companies and how they functions....................................3
Section 2...................................................................................................................................5
Discuss various forms companies from sole traders to the cooperatives and limited
liability partnerships............................................................................................................5
Section 3...................................................................................................................................7
Discuss various business organizational structure and how external factors affect
business organization.........................................................................................................7
Conclusion..............................................................................................................................10
Reference List........................................................................................................................11
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Introduction
Main objective of this report is to better understand the concept of different
type of companies. A company is a legal entity which is formed by a group of people
or individual for achieving the common objective. There are various form of
companies which can be a profit making company or non-profit organisation. It was
analysis that organizations are divided on the basis of size, objective and role. There
are various types of organisation such as micro, small, medium and large which are
differentiated with the help of their revenue and number of employees. For this report
Tesco Company is taking into consideration. It is a British multinational grocery and
merchandise retailer company. It was founded by Jack Cohen in 1919 and it’s
headquarter is in United Kingdom. Company will expand their market area by
providing a wide range of goods and services. As it retail books, furniture,
electronics, toys, internet and financial services. More than 423,092 numbers of
employees are working with it. This report will include concept and characteristic of
various types of companies and various business structure. Other than this it will
include the different organisation structure and PESTLE analysis.
Section 1
Analyze different types of companies and how they functions
A company is an legal business association incorporated under companies
act, started with the aim of manufacturing and distributing goods and services and
satisfying the needs of customers. It is termed as an separate legal entity, under
which the owners as well as the company are different. There are various types of
companies such as micro, small, medium and medium (Abdullah, 2018). The various
types of companies along with the characteristics are highlighted below:
Micro business: The first type of company is the micro business which is also
known as the micro enterprise, these types of companies are micro in size generally
started by single individual. The micro business generally has less than 10
employees started with generally with very small amount of capital in order to serve
the local community.
Example: A home based business started by an individual can be an example of
micro business.
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