Business in Practice

BUSINESS IN PRACTICE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
SECTION 1......................................................................................................................................1
Definition, characteristics and the example of micro, small, medium and large size business . .1
SECTION 2......................................................................................................................................3
Definition, characteristics and the example of Sole Trader, partnership, LLC, Public LLC and
cooperative...................................................................................................................................3
SECTION 3......................................................................................................................................6
Evaluating different types of organizational structures and its impact over the business
productivity..................................................................................................................................6
Impact of external factors on the performance of the business...................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
In the business practice, there are different factors, which are very essential for an
organization to take into account. These aspects are useful in determining whether the desired
objectives of the organization can be achieved or not. This report, provides an insight about the
different types and the sizes of the business along with their characteristics. It also covers the
impact of organizational structure over the business productivity and the various external factors
affecting the business functioning.
SECTION 1
Definition, characteristics and the example of micro, small, medium and large size business
Definition Characteristics Example
Micro The micro business
are the smallest
form of company
that have very
small and generally
are operating in
private sector.
The micro business has
Less than 10 employees
Provides around 10% of the
private sector jobs
Find difficulty in raising funds for
start up.
Very less capital investment
They have turnover of less than 2
million
Ice cream parlours
Small businesses like
web design firm,
small retailers. etc
Small It has limited
number of
employees and
sales volume is also
lower than medium
and large but higher
than micro business
(Shafi, Liu and
Ren, 2020).
It employs less than 50 employees
It has turnover generally less than
10 million
They could range from a
convenience store to a small
production plant.
It could be sole proprietor,
partnership or corporation
These business have limited
geographical boundaries
Small scale business
includes law firms,
restaurants,
engineering,
architectural firms and
inns.
Medium Medium size Mid scale entities have employees Mid sized firms could
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enterprises are
independent
companies. These
firms emerge from
steady growth of
the successful small
entities.
ranging from 100 – 1000
The turnover is generally less
than 50 million of these
enterprises.
It starts keeping the portion of
profits aside to make effective
investments for future growth and
expansion.
These businesses operate under
both private and public sectors.
They create a bridge between the
big and small companies
serve in any industry
like manufacturing,
service companies,
hotels etc.
Large size Large organisation
operates over large
scale and have
employees and
turnover higher
than other size of
business.
The employees and
and revenues of the
large companies are
high.
Large enterprises provide
employment to higher number of
people.
Large firms have employees more
than 1000
Revenues of these firms is more
than 50 million
It has increased compliance
requirements as compared with
small and micro.
They have higher number of
resources and technology
(Hernández, Yañez-Araque and
Moreno-García, 2020).
It has its presence over a wider
geographical regions from one
country to other.
These organisations operate under
both private sector and public
The large firms are
there in all industries
like Sainsbury, Tesco.
Ford, British Airways
and other firms that
operate at multiple
locations.
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