Types of Companies

Business Management with Foundation
BMP3002
Business in Practice
Types of Companies
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Table of Contents
INTRODUCTION..........................................................................................................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 business structures and external factors affecting business........5
CONCLUSION..............................................................................................................7
REFERENCE LIST ......................................................................................................9
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INTRODUCTION
The aim of this report to examine about the diferent types of companies such as micro
businesses, small businesses, medium-sized businesses and large sized businesses. In addition
to this, it also included about the different companies according their business structure and
how organisational structure affects the business productivity. Furthermore, it explained how
different external factor scan affect the performance of the businesses.
Section 1: Different types of companies and how they work
Micro business:
Micro businesses are those businesses which have less than 10 employees and operates at
very small scale (Chen and Lin, 2021). They are considered as an important part of the
economy as it is the foundation of creation of the country. It required less than €50,000 to
start the business and annual turnover is under €2million. They have single owner and
perform all the operations of the organization. It is difficult for them for getting loans they
have less capital. They also required the same amount of planning and execution plan as big
organization have. Micro businesses are considered to be the subset of small businesses. Boss
Brewing Company is led by women called Sarah John and this business was created with her
partner, Roy Alkin. It is beer company which is led by all the women employees.
Small business:
It is a business having less than 50 employees. It requires less capital, less labor and less
machines in order to run the business. Its annual turnover is above €2million but below
€10million (Calabrò, Campopiano and Basco, 2017). Broadsword Event House is a live event
service company, founded in 2006.
Medium size business: They have less then 250 employees an annual turnover will be less
than €50million. Decision-making is done by owner and other leaders (Andrade and et. al.,
2019). Also they have limited source of capital and industry niche. Rowlinson Knitwear has
less than 50 employees in the company. They offers a wide range of garments such as school
wear and corporate wear.
Large size business:
More then 250 employees are present in the organization and their annual turnover will be
more than €50million. Decision-making is made by the organization hierarchy and has wide
range of capital and funding. Also they have the ability to cater globally (Deer and Zarestky,
2017). HSBC Holdings plc is an investment bank providing services worldwide. It was
founded in 1865 by Thomas Sutherland. HSBC has more than 4000 offices across the globe.
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