Types of Companies: Exploring Different Business Structures

BSc (Hons) Business Management with
Foundation
BMP3002
Business in Practice
Assessment 1
Types of Companies
Submitted by:
Name:
ID:
Contents
0

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 3
Section 3: Different businesses structures and internal factors
affecting business 5
Conclusion 7
Reference List 8
Introduction
1

The purpose of this evaluation is to provide a brief explanation of the many
types of companies available in order to achieve competitive advantage. Using a
variety of examples, the report evaluates how firms are classified depending upon
the nature and obligation. The importance of organizational structure is also
highlighted in the study, which focuses on the two most prevalent types.
Furthermore, the report examines PESTLE analysis by choosing Tesco Company in
order to better understand the external factors affecting the potential business.
Section 1: Different types of companies and how they work
Micro business:
This type of business has no more than ten employees. This is a small
company with less than £2 million in yearly revenue and a balance sheet of less than
£316,000 pounds. To carry out virtually all of the tasks and activities of this type of
business, the owner must invest a little sum of money. These micro-businesses,
according to research, contribute to the overall economy. It also boosts the rich
economy by focusing on neglected developed and developing countries. This form of
microbusiness is typically established with the same amount of money as the former
one, and it is handled, owned, and administered by the same entrepreneur. It is
beneficial to the economy because it maintains economic coherence among the
United Kingdom's regions (Vlačić and et. al., 2021). Freelancing, architectural firms,
welders, and other professionals are examples.
Small business:
This is a business with a little amount of cash contributed by the owner,
although it has certain similarities to a local company. According to the Companies
Act of 2006, this type of business cannot employ more than 50 employees and
consequently cannot employ fewer than ten. The company's yearly revenue must be
less than £10 million, and the total balance sheet must be less than £4 million. Small
businesses can usually sustain themselves in terms of income and reach because
they can readily please clients. The company aspires to improve the economy locally
and globally, and it may be able to contribute more financially in the future. Perhaps
this type of firm contributes significantly to the economic development. As a result,
they contribute to the economy's long-term sustainability. Small businesses can
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