Types of Companies: Micro, Small, Medium, Large

BSc (Hons) Business Management with
Foundation
BMP3002
Business in Practice
Assessment 1
Types of Companies
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Contents
Section 1: Different types of companies and how they work.......................................2
Section 2: Different companies from sole traders to cooperatives and Limited Liability
Partnerships..................................................................................................................4
Section 3: Different business structures and external factors affecting business........6
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Introduction
The aim of this report to examine the different types of the companies based
on the size or scope and the legal structure or framework. Also, the various
organization structure along with the analysis of the external factor in the
performance of the business of Tesco which is the largest retail supermarket chain
store in the UK are discussed too. There are many business entities and the
company is one of the widely growing business entity that is formed with abidance of
the legal procedure for its formation. A company is mainly business associating that
alludes to a relationship of people and made to endeavour business practices,
having the legal and legislative existence, continual headway and the distinctive
seal. The company has separate legal eye in the organisation which means that a
company and owner are different that termed that a company can make contract by
itself and liable to sued by its own name (Constantin and Crişan, 2020).Moreover,
each and every country has its own pecking order of the company and the corporate
structure with the frequent similarity.
Section 1: Different types of companies and how they work
Micro business:
A micro company is very small in the size and scope and is a sort of private
company that is operating on the limited scale and scope. However that scale is
basically measured by the business number of representation, worth of the company
and the capital they would need begin their business journey (Constantin and Crişan,
2020). Basically it has found that a small business company can utilize maximum up
to 10 individuals. Even so, size and the scale are essential dissimilarity amid the
micro business company and a private company. It has been analyzed that a micro
company mostly operates as the sole ownership structure and acquire under &
260,000 per annum (Silva, 2020).There are various micro companies are operating
in the UK such as the stylist store, small street food business, freelancer , solo
consultants, home bases business or a some small retailer.
Characteristics Small market area as they have limited area of fewer locations. Company has the small scope and they have lower revenue and profitability.
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 Micro companies are mostly one man show hence they are of sole ownership
business structure. Micro companies businesses are having lesser gestation period which tis
period after which the return on the investment begins.
Small business:
This form of firm is a small business venture which is small sized and is
usually founded by a sole entrepreneur with a small or restricted quantity of
investment, manpower and a small number of individuals (Silva, 2020). These types
of businesses generate goods and services in small amounts. These types of
businesses has a turnover of £10 million and less than 50 employees works.
Catering operations, cleaning services, management counseling are some examples
of small businesses.
Example: Cafe Pod Coffee Co.
Characteristics
 The major feature of a small commercial firm is that it is usually held by a sole
member and therefore organization is handled and maintained by the founder.
 The purpose of a small company firm is to remain in the industry while earning
minimal revenue.
Another trait of small business enterprises is that they will be responsive and
adaptable to development due to their modest size (Breitbarth, Schaltegger and Mahon,
2018).
Medium size business:
 The medium size business is a kind of company entity that is medium in size,
has less than 250 people and has an averaged profit. Medium-sized
businesses contribute greatly to the growth of the economy. These
businesses generate £50 million and less than 250 employees will be
present. Manufacturers, transportation firms, distributors and so on are
examples of medium-sized businesses (Rezaee, 2019).
Example: Captify
Characteristics
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