Types of Companies: Assessing Different Business Structures and External Factors

Types of Companies

Table of Contents
Introduction.....................................................................................................................................1
Section 1.........................................................................................................................................1
Assess various types of companies and how they work...............................................1
Section 2.........................................................................................................................................3
Analyse various forms of companies from sole traders to the cooperatives and
limited liability partnerships................................................................................................3
Section 3.........................................................................................................................................5
Assess different business structure and how external factors affect business
organisation..........................................................................................................................5
Conclusion......................................................................................................................................7
References.....................................................................................................................................8

Introduction
This report is initiated to understand the different types and forms of companies
based on the shape and size and the legality. A company is defined as the legal entity
incorporated under company’s act. It is formed by the individual or group of individual to
carry out specific business activities. There are various types and forms of business
activities. For this report Tesco is taken into consideration. Tesco is the top multinational
retail company founded in 1919 by Jack Cohen as a group of market stalls at the
beginning in London. In order to understand the different types and forms of companies
Tesco has to compete with, this report highlights various types and forms of companies
along with their characteristics and also the business structure and how they impact
productivity of the business. in addition to this various external forces affecting business
is also highlighted in this report.
Section 1
Assess various types of companies and how they work
A company is defined as the business association which formed to carry out
various business practices and formulation of relationship of individuals. It is an
separate legal entity which is termed as the company as well as the owner are the
different that state that company can formulate their own contract. There are various
types of companies like micro, small, medium and large (Bidmon and Knab, 2018). The
various types of companies along with their characteristics are discussed below:
Micro business: The micro company which is also defined as the micro enterprise
are generally very small in size started by single individual with very limited capital.
Micro companies are owned and managed by sole owner and generally involves less
than 10 employees only (Buljubašić, 2020).
Characteristics:
 The small companies has small market area as they are operated in limited area
specially in the local community.
 Small companies has limited scope because they are small and have low
revenues.
1