Business in Practice

Types of
Companies

Table of Contents
INTRODUCTION...........................................................................................................................3
Section 1: Different types of companies and how they work.................................................3
Section 2: Different companies from sole traders to cooperatives and Limited Liability
Partnerships...................................................................................................................................5
Section 3: Different business structures and external factors affecting business...............7
CONCLUSION.............................................................................................................................10
REFERENCE...............................................................................................................................11
INTRODUCTION

The aim of this report to examine the many types of organisations depending on
their size and legal framework It has also addressed the various organisational
structures as well as the analysis of the external factor in the efficiency of Sainsbury’s, a
retailer, headquartered in the United Kingdom. It is formed in accordance with legal
processes. The organization is essentially a human-related corporate partnership
founded to participate in market business with legal and legislative position, ongoing
development and an identifying symbol. The organization has a separate legislative
viewpoint in the company, implying that an organization and its owner are different,
indicating that an enterprise could establish deals by itself and be blamed its own name.
Also, each country has it's own distinct perspective on the organisation and business
structure, with definite common features.
Section 1: Different types of companies and how they work
Micro business:
These are the businesses that operate at a very small scale and have number of
employees not more than 9. the turnover of the business is below 632000 Euros. They
are generally managed by the owner and do not need much investments as well
(Danilova, 2019). Micro businesses are very popular in UK as according to a report
approximately 95. 49 percent businesses of UK are micro businesses.
Characteristics
 The business that does not exceed their turnover from more than 632000 euros.
The company which has not more than 9 employees in the premises.
 Micro businesses are the most popular business in United Kingdom and it covers
the most percentage of the business of the economy.
 Micro businesses are easy to manage and does not require much investment.
One can open micro business with their savings as well.
Example: Mantons Cards, Proviz
Small business:

Small businesses works on small scale and big investments. These businesses
involves less labour, less material and less investment as compared to large or medium
sized businesses. Small scale businesses provide a big contribution in the development
of the economy (Smith and Williams, 2018).
Characteristics
 This type of business has a single owner and is also known as sole proprietor.
 They have a limited reach and all the management of the business is done by the
owner. As they have a narrow reach they usually uses local resources and the
resources that are immediately available.
 The company has not more than 20 employees.
Example: LovetheSales.com, TrustedHousesitters, CommuterClub
Medium size business:
These are the businesses are generally that are not formally recognized by the
federal government, so there's no official definition of what companies do and don't
qualify. These are normally well established businesses and are generally family owned
businesses. Micro businesses are not really popular in United Kingdom and are not
really recognized as well (Woodfield, Woods and Shepherd, 2017). The government include
them in small businesses as their is no specific definition for micro businesses define by
the government.
Characteristics: The company which has not more than 20-199 employees and not less than 100
employees are considered to be medium sized businesses. The company which has an annual turnover in between $5 million to $10 million. The company is likely to have more than one office location and will have a small
IT staff.
Example: Verdant leisure, captify, Smith Brothers, etc.
Large size business: