Business in Practice

BUSINESS IN
PRACTICE

Table of Contents
INTRODUCTION:- ........................................................................................................................3
Definition, characteristics and example of micro, small, medium size and large size business. ....3
Definition, characteristics and example of sole trader business, partnership, limited liability
business, public limited liability business and Cooperative............................................................5
Identify different organisational structures. ...................................................................................7
How organisational structure affects business productivity............................................................8
Explain how different external factors affect the performance of a business using PESTLE
analysis . ..........................................................................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION:-
Business is defined as an administration which is involved in trading of goods & services.
Businesses are of various types such as medium size, micro, small, partnership etc. Businesses
may be profit or non profit entities. Businesses improves the life of an individual by providing
the goods and services to the consumer and it also generates employment opportunities by which
people can earn income and improves their quality of life(Rohn and et. al., 2021). This report
focuses on the micro, small and medium and large sized businesses and their characteristics and
also sole trader, partnership, limited liability partnership and public limited liability business and
their characteristics. Moreover this report also focuses on the organisational structure and how it
affects business productivity and using PESTLE analysis how it affects the company.
TASK
Definition, characteristics and example of micro, small, medium size and large
size business.
MICRO BUSINESS:-
Micro business is defined as a type of small businesses that works on a very small scale.
This is gauged according to number of worker, total worth, money needed to start the businesses.
In this business there are less than 10 employees including the owner (Siti-Nabiha and et. al.,
2021). This business is actually run by single person. It is begin with small amount of capital
which is advanced from financial institution and another organisation.
Characteristics of micro businesses: A few characteristics of micro businesses are below:-
 Ownership:- Micro business is started with single owner. This business is also known as
sole proprietorship.
 Limited reach:- This business has operated in limited area. They run their business like
local shop or an industry located in one area.
 Management:- The management of micro business is managed by the owner itself.
Examples of micro businesses are:- Boss Brewing company, Issoria, Mantons Cards.

SMALL BUSINESS:-
Small business is defined as an partnership, private owned business or sole proprietorship
that has few employees. It has a less annual income than other corporations. This business
includes less capital investment, labour and fewer machines to operate.
Characteristics of small businesses: A few characteristics of small businesses are:-
 Labour intensive:- These businesses are dependent on labours and manpowers. They
have less dependent on technology.
 Flexibility:- These businesses are small and they are in a position to sudden changes.
 Resources:- These businesses requires resources that is available immediately. They
have limited wastage and utilize the natural resources effectively.
Examples of small businesses:- Third way Group
MEDIUM SIZE BUSINESS:-
Medium size business concern are family owned businesses. These businesses are well
constituted and have an noticeable track record which expedited finance judgement by granter or
investors(Ouro-Filho and et. al., 2021).
Characteristics of Medium sized businesses: A few characteristics of medium sized business is
as follows:-
 Life long learner:- These businesses are dedicated to learning and enhancing their
skills . This is the key to success of businesses.
 Be open to change:- These businesses have growth mindset rather than fixed mindset. It
anticipate the changes and try to get ahead.
 Limited investment:- Medium sized business are operated on a small scale and there is
less requirement of capital.
Examples of medium size businesses:- Verdant leisure, Captify, Smith brothers
LARGE SIZE BUSINESS:-
It is a business category with an above ordinary business size and have big dealings .
They also have the high economies of scale. These businesses employ lots of labour and yield