Different Types of Companies and Their Organizational Structures

Business in Practice

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................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............................................................................................................................4
Section 3: Different businesses structures and internal factors affecting business................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business refers to the activity in which an individual is engaged to provide its good
produced or services offered with an aim to earn profits. In wider sense it refers to an
organisation or entity which conduct themselves in commercial, industrial or professional
activities. Sometimes business is carried out aiming not to earn profit and thus, called non-profit
organisation. Further to conduct a business effectively and efficiently it is required to inherit best
business practices. These may be devised by, the business or entity establishing authorities or
according to the rules and regulations established by the governing bodies. Although the
companies are required to act in accordance with the provisions of the Companies Act, 2006. The
report examines the type of companies and the organisation structure they form.
MAIN BODY
Section 1: Different types of companies and how they work
Small-Medium Enterprises are the firms in which few members are employed. The
Companies Act, 2006 of United Kingdom under section 382 ans 465 defines SMEs mainly for
the purpose of accounting requirements (Chakraborty, Gao and Sheikh, 2019). In order to
understand the SMEs, it is bifurcated into three categories which are as follows:-
Micro Business
The term derives as small business i.e. enterprises which engages small number of
people. It consist the count of employees ten or less with an annual turnover of €2million.
Further they engage to conduct business in their local areas with an aim to provide the goods or
services effectively by improving the quality life of people living in their localities. The micro
credit method provides finance facilities like small loan to these enterprises as to help the
business to grow. The micro enterprises are small in size and have limited scope and thus,
portrays and contributes a small potion in an economy. Boss Brewing Company a beer industry is
one of the example of micro business in UK. Such businesses are carpenters, plumbers, cobblers,
small farmers etc. Its main characteristics are:
 number of employees must not be more than ten
 annual turnover must no be more than £632,000
 the total of balance sheet must not exceed £316,000