Different Types of Companies and Their Impact on Business

Business Management with Foundation
BMP3002
Business in Practice
Assessment 1
Types of Companies
Submitted by:
Name:
Contents
Introduction 2
Section 1: Different types of companies and how they work
P
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Section 2: Different companies from sole traders to cooperatives
and Limited Liability Partnerships p
Section 3: Different businesses structures and internal factors
affecting business p
Conclusion p
Reference List p
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Introduction
The aim of this report is to examine business environment which is the environment
in which it plays an important part in evaluating the success and growth of business.
The report will analyse micro business, small business, medium size business
and large size business play an important role in business. Sole trader business,
partnership, limited liability business, public limited liability business and Cooperative
which will be explained with the key points of definition, characteristics along with
examples. Different Organizational Structures and how they affect business
productivity will be elaborated and PESTEL analysis will be explained along with this.
Section 1: Different types of companies and how they work
Micro business:
Micro Business — Micro businesses are defined as smallest of all businesses with
only few employees, say, less than ten employees. It is also known as
microenterprise which is considered smallest of business with few employment
positions. The employees in micro business companies are less than 10 employees.
Micro businesses are small. The scope of micro businesses include wide range of
activities which does not have sophisticated technology. Along with this, the
objectives of micro business are to generate large scale employment opportunities
and to remove unemployment problem.
Characteristics of Micro Business -
 In micro business, single owner runs the business on its own.
 There are no restrictions in the business as the management constitutes less
number of people.
 There are fewer conflicts between the employees.
Example of Micro Business — Example of micro business constitutes Boss Brewing
company. The owner name of the company is Roy Allkin and the company was
established in the year 2014.This micro business is the best business which is
functioning in UK. This business expands on micro level.
Small business:
Small Business — Small business are defined as the type of industries which
produce products and services on small scale. Small business plays an important
role in the economy of UK leading to country's growth and development (Aurelia and
et.al., 2018). There are fewer than 250 employees in small size business. The size of
the business is more than micro business. Scope of small scale business is that
these businesses start from scratch, and they diversify their ways of expanding on
large scale.
Characteristics of Small Business -
 Small business is flexible as they are open to changes occurring in business.
Small businesses accept changes easily because they are on the stage of
growth and wish to expand their business on large scale.
 Small businesses utilize local and resources that are immediately available.
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