Different Types of Companies and Their Structures

Business in Practice
Table of Contents

Introduction.................................................................................................3
Section 1: Different types of companies and how they work .....................3
Micro business: ......................................................................................3
Small business: .......................................................................................4
Medium size business: ............................................................................4
Large size business: ...............................................................................5
Section 2: Different companies from sole traders to cooperatives and
Limited Liability Partnerships .....................................................................5
Sole trader business: ..............................................................................5
Partnership: ............................................................................................6
Limited liability business: .......................................................................7
Public limited liability business: ..............................................................7
Cooperative: ...........................................................................................7
Section 3: Different business structures and external factors affecting
business......................................................................................................8
3.1 Identification of different organizational structures and explaining
how does organisational structure affect business productivity..............8
3.2 How different external factors affect the performance of a business
– PESTLE Analysis ...................................................................................9
Conclusion.................................................................................................10
Reference List ..........................................................................................11

Introduction
The aim of this report to examine characteristics and examples of micro
business, small business, medium size and large size business. Sole trader
business, partnership, limited liability business, public limited liability business and
cooperatives are discussed in the report. Different organisational structure and how
it affects the business productivity is described in the report.
PESTLE analysis is discussed and how performance of business is affected
by different external factors. Business practice are the different ways that business
uses for achieving its objectives. An organisation has different rules and policies for
business practices. It helps in ensuring that employees are working efficiently or not.
Section 1: Different types of companies and how they
work
Micro business:
Micro business is the type of business that employs less than 10 people. It is
a type of small business which is run by an individual. In micro business earnings
are less than compare to micro business (Basco., Calabrò and Campopiano., 2019).
Many of the businesses are not having employees, they are owned and managed by
the individual. Characteristics of micro business is that:
 It has lower revenue and lower profitability. As the investment done in micro
business is low so the revenue generated from the business is also low.
 In micro business smaller teams of employees because employees involved
in the micro business is not more than 10.
 It has small market area. Micro businesses doesn't cover wide area of the
market.
 Individual person owned the business so all the profit and losses are taken by
the individual owner.

Some examples of micro business are trading and retail, food business like
canteen, agriculture business, furniture making, blogging and publishing etc.
Small business:
Small business refers to privately owned businesses, corporations,
partnerships or sole proprietorship. Businesses are small and does not include many
employees. It includes less than 49 employees (Blewitt., Parsons and Shane.,
2018.). Some examples of small businesses include convenience stores, small
grocery shops or stores, bakeries, carpenters, electricians, restaurants, guest house,
photographers, small scale manufacturing. Normally, the revenue generated by retail
and service is not much. Characteristics of small business are, willing to take risk,
focus on achieving the goals and objectives.
Employees of small business are confident, enthusiastic and they focus more
on achieving objectives of the business. Employees are self motivated and self
reliant. If business is owned by the individual then single person is responsible for all
the liability and for managing all the activities alone. In small business the owner
should have the ability to separate personal life and professional life. The motive of
owners of small businesses is to earn profit and focuses on satisfying more
customers.
Medium size business:
Medium size business refers to the organisations that are of medium size with
50- 259 employees. In this family owned and managed business both are included.
In this medium size business more people get employment and lot of opportunities
are available. Some examples of medium size business are, making of paper bags,
manufacturing of furniture, production of talcum powder, leather product
manufacturing etc.
Characteristics of medium size business are, be passionate about business,
good at dealing with customers (Hroncova Vicianova and et.al., 2017). Medium size
business are important as it helps in learning from mistakes. A medium size