Different Types of Companies and Business Structures

BUSSINESS IN
PRACTICE

Table of Contents
Introduction......................................................................................................................................1
Section 1...........................................................................................................................................1
Different types of companies and how they work......................................................................1
Section 2...........................................................................................................................................2
You are required to explain different companies from sole traders to cooperatives and Limited
Liability Partnerships. ................................................................................................................2
Section 3...........................................................................................................................................3
To consider different business structures and how external factors affect businesses................3
Conclusion.......................................................................................................................................5
REFERENCES................................................................................................................................5

Introduction
It is important for all the businesses through the world to motivate each of their talented
workforce to adhere to all the business management practices as it is vital for their success
(Antero, 2015). There is diverse type of companies that are operated in a business environment.
This is mainly done by classifying different businesses by size and the legal structure.
Marks and Spencer, is one of the well-known British national retailers. They are engaged
in offering that includes selling clothing, home and food products. This product mainly covered
different type of companies, legal structure and different types of structure that used in the
Organizations. Along with this, it also stated impact of external analysis using pestle tool on the
company.
Section 1
Different types of companies and how they work
Organisations in U.K economy are classified into different types that are highly
dependent on their size and purpose of businesses. This companies are mainly groups into micro,
small, medium is large business (Azudin and Mansor, 2018.). It can be explained in detailed
before for its better understanding.
 Micro business: This can be referred to as company single person company wherein
there are less than 10 employees for doing their operations. Along with this, there is less
than £2,50000 revenue and required approximately £50000 as a capital to initiate their
businesses. In this type of companies, managers are involved in day to day businesses.
For example, Boss brewing company and Mantons cards.
 Small business: This can have referred to as those businesses wherein employees than
between 10 to 50. Along, with this, there annual turnover is less than £10 million. This
company's lack in finances and find difficulty in surviving in this dynamic business
environment.
 Medium business: This business is those business wherein there are less than 250
employees. Adding to this, there annual turnover is less than £50 million. They have
lower capability to arrange finances in order to be able to survive in the business
environment.
1