Types of Companies

Types of Companies

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Task 1...............................................................................................................................................1
1.1 Definition, characteristics and example of micro business, small business, medium size
business and large size business..................................................................................................1
Task 2...............................................................................................................................................2
2.1 Definition, characteristics and example of sole trader business, partnership, limited
liability business, public limited liability business and Cooperative..........................................2
Task 3...............................................................................................................................................5
3.1 Identify different organisational structures and explain how organisational structure
affects business productivity.......................................................................................................5
3.2 Using PESTLE analysis explain how different external factors affect the performance of a
business.......................................................................................................................................5
CONCLUSION................................................................................................................................7
References:.......................................................................................................................................8

INTRODUCTION
Business entity is an organisation created by one or more individuals with some motives
of profit earning, welfare of society and to create reputation (Mrňová and Roudná, 2020).
Companies are separate entity from their owner and different types of companies are based on
number of owners and their main objective of performing the business. Asda is an British
supermarket chain which is located in Leeds, UK. This company was founded in 1949 by Noel
Stockdale and J.W. Hindell. The following report consist of definition and characteristics of
different types of businesses, organisational structure and their effect on business productivity,
PESTEL analysis of Asda company.
MAIN BODY
Task 1
1.1 Definition, characteristics and example of micro business, small business, medium size
business and large size business
Micro business- These are the businesses which is handled by less than ten employees.
The members of this businesses are basically seen as family members. Micro businesses are the
part of small business(Andrews and et. al., 2020). One of the company of micro business in UK
is Mantons Cards which is a very small gifts card making enterprises.
Characteristics of micro business-
 Less than six employees handle whole business functions. A less amount of investment is required for start up of micro business.
Small business- These are those companies which did not exceed more than 50
employees to handle their daily operational activities. The best example of small business in UK
is CAFEPOD Coffee Co. which is managed by 15 employees and it is one of the most successful
small business with good amount of profit earning ratio in UK.
Characteristics of small business-
 Small businesses considered less than 50 employees.
 Their owners are willing to take risk.
Medium size business- The definition of medium sized business is defined under
companies act 2006 which states that medium sized companies are those companies which has
1