Types of Companies and Their Impact on Business Performance

BSc (Hons) Business Management with
Foundation
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 500 words...............................2
Section 2: Different companies from sole traders to cooperatives and Limited Liability
Partnerships............................................................................................................................3
Section 3: Different business structures and external factors affecting business...................4
3.1 Identification of different organizational structures and explaining how does
organizational structure affect business productivity...........................................................4
3.2 How different external factors affect the performance of a business – PESTLE Analysis
................................................................................................................................................6
Conclusion..................................................................................................................................6
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Introduction
The world is dynamic and it is important for an individual to select best option to
conduct their business. As there are types of companies that have exist in the market. As the
selection of the business is based on the size and scope of the business. There are different
organizational structures such as individual and functional and the success of business and its
productivity is based on the performance of the business. Also there is discussion related to
various forms of internal and external factors and their impact on the business. To support the
same PESTLE Analysis is done at the end of the report.
Section 1: Different types of companies and how they work 500 words
Micro business:
A micro business is the one in which the number of employees are 10 or less than 10
and the annual turnover of the business is under £2 million. It is encouraged because it
provides opportunity for employment and it contributes to the GDP of the nation.
Small business:
A business employing employees between 10-50 and having a turnover of above £2
million but less than £10 million is termed as a small business. These business forms are
larger than micro business and also provide employment to around 50 employees. It helps to
start a business and use money effectively. It is contributing to around 47% to the economy
as per that data of 2016.
Medium size business:
A business having employees between 50-250 and an annual turnover of above £10
million but less than £50 million is a medium size business. It is one of the famous and
widely used businesses in United Kingdoms. The importance of medium business is
enhancing day by day. As they contribute a large part to the growth of nation.
Large size business:
It is a business organization that has more than 250 employees. Various organizations
in UK are large scale and they provide employment to various individuals. It plays a
significant role in growth of business sector in United Kingdom.
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