Types of Companies and Business Structures: A Study

This report provides a comprehensive study on the different types of companies and business structures. It explores micro businesses, small businesses, medium-sized businesses, and large businesses, along with their operations. The report also delves into sole traders, partnerships, limited liability businesses, and cooperatives, discussing their characteristics and examples. Additionally, it examines how organizational structure affects business productivity and analyzes the external factors that impact business performance. A valuable resource for understanding the various aspects of companies and business structures.

In Practice

Table of Contents
Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
SECTION 1: Types of companies along with how they operate...........................................1
SECTION 2: Different companies from sole traders to cooperatives as well as Limited
Liability Partnerships...............................................................................................................2
SECTION 3: Various businesses structure along with external factors which affects
business......................................................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business in operations basically defines to a method in which issues of learners are to be
determined in order to carry and perform practices of business. As it generally defined to
performing out business operations through various companies (Hendri, 2019). As this report is
based on business in practice of a large company Unilever which is retail company that operates
in different products and services. This report includes various types of companies and how they
operate, companies from performing out sole traders in terms of cooperative to limited liability,
different organisation structures as well as external aspects that affect performance of business
along with its conclusion.
MAIN BODY
SECTION 1: Types of companies along with how they operate.
There are different kinds of companies which are explained as:
 Micro business: This business is said to be a kind of business that deals in small scale.
As micro business is basically referred to a subcategory of small business by which this
could be attend through a value which is less than $2,50,000 as well as less than 5
employees. Features of micro business is that it generally performs on less employees
along with no employees (Rosenbaum, More and Steane, 2018). An instance of micro
business is Castle hill fire protection limited which is a contractor base in East Angela
that it specialises in carrying out installation of passive fire protection products as well as
services for main construction projects.
 Small businesses: This kind of business are basically owned by private companies which
are partnership, operation as well as sole proprietorships which involves in employing
less employees with an annual revenue of their continuous size business. Small
businesses involved business practice of retail operations that are groceries, convenience
stores and so on. Features of small business could be explained as they are always willing
to take risk along with they have an ability for performing out individual work along with
family life. Small business is also having reach in unlimited number for carrying out
business. Instance of small business is Fourex which is currency exchange company.
 Medium size business: As these businesses are considered to be type of business that
keep a record of revenues along with employees with a particular threshold. Medium
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sized businesses are said to be important for carrying out an essential function in
economy by employing a limited number of employees. Medium size business basically
deals in creating effective competitive as well as safe economy e by assisting in large
companies (Bourlès and Cozarenco, 2018). Nature of medium size business is that they
provide training and development services to their managers for running out their
business operations with higher performance along with they also focus on providing
engagement of employees in order to make a regular innervate action in their practices.
Example of medium size business is Verdant Leisure which is a holiday Park company
that deals in North of England.
 Large size business: It is a kind of business practice that checks various conditions in
terms of having more than 5000 employees at their company. Large size business
basically carries a turnover of more than 1.5 billion euros also with a balance sheet of
more than 2 billion euros. It is generally defined to a business operation that has various
employees along with different accounts for providing 40% employment rate. Features of
large sized business generally consists of technological skills in their employees along
with they have different locations in order to carry their business practices domestically
along with internationally with an effectiveness. As instance of large size business is
McLaren technology group which is a conglomerate technology company deals in
consumer electronics as well as foods and restaurants.
SECTION 2: Different companies from sole traders to cooperatives as well as Limited
Liability Partnerships.
There are different companies that could be categorised in types of businesses which are as
follows:
 Sole trade business: As kind of business is also referred to sole proprietorship as well as
this kind of business is performed and carried by one person by having no legal deviation
between their owners in order to determine their business identity. Sole proprietorship
business gets various profits or losses also they have unlimited responsibility for carrying
out debts (Top, and Sungur, 2019). Nature of sole proprietorship is that they have
unlimited liability and also they keep maintain a secrecy in their business operations.
Example of sole trader business is cake bake that is a baking organisation deals in selling
out cakes.
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 Partnership business: It is referred to a kind of business in which 2 as well as more than
two persons share their ownership in terms of responsibility for carrying out business
practices by generating revenues and losses in markets. Partnership is a kind of business
where arrangement of various parties that are business partners that agrees to carry their
business practices mutually (Tkachenko, 2018). Characteristics of partnership business
could be explained as in sharing profits among business partners they also carry
unlimited liabilities in their business practices in terms of joint work. Example of
partnership business is Social chain which is a company that provides online students
communities for having e learning.
 Limited liability business: It generally refers to a kind of business that is used for
creating private companies. As it is considered to be an efficient legal business to form a
company. limited liability business is performed with the legal entity that has financial
ability in terms of amount which is limited along with investment in a corporation.
Features of limited liability business is that they are flexible in nature by having a
individual legal identity as well as they have limited liability along with they are having
an age of work in carrying out business operations and a benefit of carrying out income
taxations. Instance of limited liability business is Oxfam that is a confederation of 20
companies which focuses on elevation of global poverty.
 Public limited liability business: This business refers to companies that performs limited
liability along with it offers various shares to general targets. This business is basically
regulated with the requirement of publishing accurate financial health to their
stakeholders. Also along with that this kind of business is a public company that carries
according to company’s law which is maintained by jurisdictions of Commonwealth
(Mohd Akhir, 2020). Features of public limited liability business considered to be e as
having limited liability in which their shareholders carry a liability for losses of company
along with having amount of transferable shares that have limited financial privacy.
Example of public limited liability business is HSBC holdings which is an investment
bank.
 Cooperative business: This type of business is an autonomous in nature which is relation
of individuals that are having United voluntarily to have their economic and cultural
needs through to jointly owned company. Features of cooperative business is that it has
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voluntary membership as well as having open membership. Along with that cooperative
business carries finances of liability in terms of Democratic controlling by which limited
interest on capital could be determined. Also with that cooperative business carries
distribution of various profits along with losses for performing out business practices that
focus on having service objective. An instance of cooperative business is dairy company
e that deals in selling out dairy and milk products.
SECTION 3: Various businesses structure along with external factors which affects
business
Identification of different organisational structures along with explanation of how does
organisational structure affect business productivity.
An organisation structure depicts about how activity is much task allocation coordination
and supervision are resumes to achievement of Organisation objectives (Jamil, 2020).
Organisational structure also focus on how Information is process within organisation to an other
department as distribution. Each business has their own size and scope each business has their
own size and scope of organisation structure that defines hierarchy top medium and bottom level
of management. Perspective of successful organisation structure will defect that each employees
job and how they fit in overall system which would can meet all objectives in systematic
manner. There are four types of organisation structure are:
 Function structure; According to this function structure the people who do similar tasks
are grouped together based on speciality call accountant and other operation department
placed in finance department. Similarly, it also happened with marketing and HR
department where people are coming from specific background company make them fit
into that department in which the work can be process flexibility and decision-making
can be in quick manner.
 Divisional structure; according to this structure Company worker into team based on
product for project that achieve certain standards and different types of customers. The
food and beverages company will operate their structure on workforce in some function
event or wedding sessions to provide their services.
 Matrix structure: the structure combines the element of functional and divisional model
both in which personnel department is specified about specialisation of an individual
where divisional is rapper about projects of product in a separate manner (Rosário and de
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Lima, 2021). kinematic structure of the team member is given more autonomy and
having expectations to undertake more responsibility for and combat their work
effectively.
External factors which affects performance of business
This analyzation is used to conduct at the time of company planning to invest or stablish their
business in international region. It has to provide information related to challenges and
opportunities that revolves in external environment of business. In following pestle analysis
behalf of Unilever company.
 Political: This factor emphasis about rules and regulation which covered by corporate
governance for organization. The political situation of United Kingdom is stabilized in
terms of their policies foreign exchange and other rules and regulation that revolves
around corporate systems. Unilever can easily work United Kingdom sector but there is a
implication of Brexit which not allowed to trade in European union that can be decrease
the growth of Unilever.
 Economics: according to this factor Adam per size about the performance and condition
of economy about specific country. The performance and condition is analysed on the
basis of inflation rate recession employment it and other factors. For example Unilever
company e can get up from the UK economy as there is uncertainty of inflation and
recession of UK currency as well as the Brexit market do not get any opportunity for
trade properly manner.
 Social: today's factor it was about to target people on the basis of demographic and
Geographic factor. For example, Unilever can approach their product and services on the
basis of age gender income and so on.
 Technological: It describe about the aspect of advance technology which can read more
scope of business opportunity (Ganz and Meiren, 2020). In UK there is a vast opportunity
of Technology aur resources terms of artificial intelligence. For example, Unilever
company can have good opportunity to utilise resources at United Kingdom provide
increase the productivity level.
 Environmental: This Pestle factor one of the most important for every business aspect. It
helps to provide a platform in which business can contribute for society for better
development. For example, a Unilever itself health and personal care product provides to
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customer in which they can promote their vision and contribute in in corporate social
responsibility with the aim of society betterment positive manner.
 Legal: Through the legal aspect of pestle factor only focus on employment law and other
regulation which is important for every business to follow as per the guidelines that
government generates (Scheuplein, 2019). For example, Unilever can approach their
legal perspective in UK to provide their employee about the employment rights in which
their work must resume in systematic manner.
CONCLUSION
From above report it could be concluded that for performing out business operations it is
essential to determine usefulness of company in order to maintain position in corporate markets.
This report explains about various kinds of companies along with there is an explanation of how
they operate in business world. This report explains about various kinds of companies which
involves sole proprietor, cooperative and other partnership business. This report also explains
about various structure of company which is used by them in order to carry their business
practices along with explanation of how they affect business productivity that is explained.
Along with that there is an explanation of various external factors which effects performance that
could be termed in carrying out external analysis.
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REFERENCES
Books and Journals
Scheuplein, C., 2019. Private Equity as a commodification of companies: the case of the German
automotive supply industry. Journal of economic policy reform, pp.1-16.
Rosário, F.J.P. and de Lima, A.A., 2021. Small Industrial Companies and Frugal Innovation: A
Case Study in the State of Alagoas/Brazil. Frugal Innovation and Its Implementation:
Leveraging Constraints to Drive Innovations on a Global Scale, p.191.
Jamil, N.A.N., 2020. Technology-Based Business Idea Blueprint Shopping Trolley With
Tracker.
Mohd Akhir, S.N.H., 2020. Fundamentals Of Entrepreneurship (ENT300): Glitter Exclusive.
Top, M. and Sungur, C., 2019. Opinions and evaluations of stakeholders in the implementation
of the public‐private partnership (PPP) model in integrated health campuses (city
hospitals) in Turkey. The International journal of health planning and management .34
(1). pp.e241-e263.
Tkachenko, К., 2018. Some aspects of partnership between state, business and education in
training of specialists. EIRP Proceedings, 13.
Bourlès, R. and Cozarenco, A., 2018. Entrepreneurial motivation and business performance:
evidence from a French microfinance institution. Small Business Economics .51 (4).
pp.943-963.
Hendri, M.I., 2019. The mediation effect of job satisfaction and organizational commitment on
the organizational learning effect of the employee performance. International Journal of
Productivity and Performance Management.
Rosenbaum, D., More, E. and Steane, P., 2018. Planned organisational change management:
Forward to the past? An exploratory literature review. Journal of Organizational
Change Management.
Ganz, W. and Meiren, T., 2020, July. Typology-Based Analysis of Artificial Intelligence in
Service Companies. In International Conference on Applied Human Factors and
Ergonomics (pp. 205-211). Springer, Cham.
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