Types of Companies and Business Organizational Structure

BSc (Hons) Business Management with
Foundation
BMP3002
Business in Practice
Assessment 1
Types of Companies
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Table of Contents
Introduction.....................................................................................................................................1
Section 1.........................................................................................................................................1
Discuss various types of companies and how they functions......................................1
Section 2.........................................................................................................................................3
Assess different forms companies from sole traders to the cooperatives and limited
liability partnerships.............................................................................................................3
Section 3.........................................................................................................................................5
Analyse various business organisational structure and how external factors affect
business organisation.........................................................................................................5
Conclusion......................................................................................................................................7
References.....................................................................................................................................8

Introduction
A company is an association of legal business entity which formed by the individual
or group of individual with the aim of managing and operating various activities and
functions, the line of business the company is involve in will establish kind of business
structure it select such as partnership, proprietorship or corporation, this report is
initiated to understand the different type of companies. For this report Marks & Spencer
is taken into consideration. Marks & Spencer is a British top international retail company
founded in 1884 by Michael Marks and Thomas Spencer dealing food products, home
products and clothing and so on. In this report various types and forms of companies
are highlighted along with their characteristics in order to understand the various types
of companies the Marks & Spencer has to compete with. In addition to this various
business structure and the external factors affecting business is also highlighted.
Section 1
Discuss various types of companies and how they functions
There are various types of companies such as micro business, small business,
medium sized business and large size business. The various types of companies along
with the characteristics are discussed below:
Micro business: The first type of company is the micro business which is also known
as the micro enterprises, this type of business are generally very small in size having
less than 10 employees. Micro business are started by the single individual with small
amount of capital and limited revenue. These are generally started by the single
individual in local community only (Brown, 2018).
Example: A grocery store started by an sole individual in the local community is an
example of micro business.
Characteristics: The main example of the micro business is that the level of competition for the
business is very low as there are very small in size and scope. The functions and activities are controlled and managed by the owner himself.
Small business: The small business are the type of company which are generally
very small in size and scope and started by single individual or entrepreneur with limited
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