Types of Companies: Micro, Small, Medium, Large

BSc (Hons) Business Management with
Foundation
BMP3002
Business in Practice
Assessment 1
Types of Companies
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Contents
Introduction...................................................................................................................3
Section 1: Different types of companies and how they work.......................................3
Micro business:.........................................................................................................3
Small business:.........................................................................................................4
Medium size business:..............................................................................................4
Large size business:.................................................................................................4
Section 2: Different companies from sole traders to cooperatives and Limited Liability
Partnerships..................................................................................................................5
Sole trader business:................................................................................................5
Partnership:...............................................................................................................5
Limited liability business:..........................................................................................6
Public limited liability business:.................................................................................6
Cooperative:..............................................................................................................7
Section 3: Different business structures and external factors affecting business........7
3.1 Different organizational structures and how does organisational structure affect
business productivity.................................................................................................7
Functional structure...................................................................................................7
Divisional structure....................................................................................................7
Organizational structure affects business productivity.............................................8
3.2 How different external factors affect the performance of a business – PESTLE
Analysis.........................................................................................................................8
Conclusion....................................................................................................................8
References...................................................................................................................9

Introduction
The objective of this study is to study the various firms' kinds on the basis of
size or size and legal structures. Furthermore, the structure of the different
organisations is also explored along with a study of the external element in
Sainsbury's success as the largest supermarket chain store in the UK. It is one of the
larger business entities which is founded with compliance with the legal procedure
for its establishment. There are various business entities. The corporation is
essentially a commercial association which refers to people's relationships and which
is dedicated to the pursuit of business practises and the presence of laws and
legislation. The company has a distinct law in the organisation, and this implies that
an organisation and owner are different from one business which claims that a
business can enter into contracts by itself and is subject for prosecution by its own
name (Akhtar, 2018).
Section 1: Different types of companies and how they work
Micro business:
The size and scope of a micro-business is relatively small and it is a type of
private corporation operating on a restricted scale. This size is, however, essentially
assessed by the registered office, value and cash they would require to start their
business journey. In principle, it has been shown that up to 10 employees can be
used by a small corporation. Size and scale in the micro-business and private sector
are nonetheless crucial differences. It has been examined that a micro corporation is
largely the only owner and acquires less than & 260,000 per year. There are several
micro firms in the UK, such as the stylist shop, tiny street food company, freelancer,
solo consultants and a home company (Bihari and Khanuja, 2019).
Characteristics
 Limited market area since they are restricted to few places.
 The enterprise has a limited scale and has lesser profitability and sales.
 Micro firms are usually one guy, thus they are only company owners.
 The interval after which returns on the investments commence is less
expectant for micro-enterprises.

Small business:
This kind of company is a tiny company, which is often created by a unique
company with minimal or limited investment, workforce and few people. These kind
of companies produce little amounts of goods and services. These kind of
companies account for £10 million in sales and employ less than 50 people. Some
examples of small companies are catering activities, cleaning services, management
consulting.
Characteristics
 The key aspect of a small commercial company is that it is generally owned
by a single member and is thus managed and maintained by the founding
organisation.
 The aim of a small start-up is to continue in the sector with a minimum
income.
Additional feature of tiny companies is that because of their small size, they are
flexible and flexible to development.
Medium size business:
The medium-sized firm is a medium-sized enterprise with an average
profitability of less than 250 individuals. Medium-sized enterprises make a significant
contribution to economic growth. These companies will produce £50 million and
employ fewer than 250 people. Examples of medium-sized companies includes
manufacturers, transport companies, distributors and more (Buljubašić, 2020).
Example: Captify
Characteristics
 A medium-sized corporation has a modest assets as one of its primary traits.
 Another feature of these company forms is that it is frequently based on the
objective to satisfy consumers while achieving the lowest amount of revenues.
 The medium-sized company's administration is generally unstructured; the
entrepreneur oversees all company activities successfully.