Introduction to Business: Types of Businesses, Business Structure, and Impact on Business

Introduction to Business

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY ..................................................................................................................................4
Different types of businesses......................................................................................................4
Your business structure .............................................................................................................5
Macro Environment....................................................................................................................5
Micro Environment.....................................................................................................................7
Impacts on your business ...........................................................................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Business basically refers to an organisation or enterprising entity which is busy in
professional activities, commercial and industrial aspect. Businesses can be for profit entities or
non-profit organisations. They can be basically ranges from sole proprietorships, limited liability
companies, partnerships and corporations(Doanh and et.al., 2021). This term is also used for
defining the activities and efforts of people to sell and produce services and goods for purpose of
profit. In the present report, Cream cafe is taken into consideration. Cream cafe basically aims
for offering moments of relaxation and fulfil the energy for a new day. Their shop also support in
terms of relieving stress and also act as comfortable place in order to meet with friends. The
present report will cover analysis about dissimilar kinds of businesses and also about the
business structure. In addition to this the report will cover analysis about macro and micro
environment and also about impact on the business. Moreover the report will cover discussion
about recommendations for the business.
MAIN BODY
Different kinds of businesses
There are disimilar types of businesses in this world of business and there are basically
four kinds of businesses.It is explained into the following way:
 Sole Proprietorship: It is basically a company in unincorporated form which is
possessed by only one individual. Under this kind of business, it basically provides low
amount of financial protection and legal protection to the owner. They basically has
shared the same identity as the company by the owner of business and do not create a
separate legal identity for the business. So owner of the business is fully responsible for
any kind of liabilities which is incured by the company.
 Partnership: This is a kind of business where ity is owned by two or more people who
are called as partners.The income is treated as owner income which is taxed on the single
basis and they have the advantage of flow through taxation. The liabilities of the firm is
basically paid by the owners in partnerships (Freeman., 2017). There are dissimilar kinds
of partnerships which basically include limited liability partnerships, general partnerships
and limited partnerships.

 Limited liability company: This is a company which combines the aspects of both
corporations and partnerships. Limited liability company retains the benefits of tax of
limited liability corporations and sole proprietorships. They can choose between
treatments of tax at different level (Hamdani and et.al., 2018). When LLC have the option
of choosing should not be considered as corporation at C level and it retains to flow
through taxation status.
 Corporation: Corporations are basically created by shareholders and act as separate
legal entity as well. Corporations are more complicated to create as compared to other
three types of businesses. Business owners can also be protected from being liable on
personal basis for the company's debts and legal disputes as well(Fried and Mumcu eds.,
2016).There are basically three types of corporations which include S corporation, C
corporation and non-profit corporation.
Your business structure
Cream café is basically follows the partnership form of business. There are some partners in
Cream Cafe which includes CMO, CFO, CCO and Shop Manager. CMO is named as Mihai-
Daniel Cazacu. CFO is named as Florin Emrah Badulescu and CCO is named as Loana
Madaliana Pinzari. The shop manager name is Ana Florentina Florica. In this type of
business there is no financial stress because there are partners in the business who can
support at the time of crisis situation. It has been observed that owners in partnership are
basically responsible for liabilities in the firm.
Macro Environment
Macro environment basically refers to those set of conditions which exist in the economy into
the whole spectrum rather than in a particular region or sector as well.
PESTLE Analysis
Political Factors: These are the factors which basically include tax policy,
environmental regulations, tariffs, trade restrictions and also political stability as well(Helin and
Jabri., 2016). These factors basically talks about the extent to which a government influence the
industry or a company. As the UK country has strong stability so cream café can easily enter into
the European market. The different locations of London has strong advantage in terms of
stability factor due to which it is easier for Cream Café to establish themselves.