Types of Companies and Business Structures

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BMP3002
Business in Practice
Assessment 1
Types of Companies

1
Contents
Introduction 2
Section 1: Different types of companies and how they work
2
Section 2: Different companies from sole traders to cooperatives
and Limited Liability Partnerships 3
Section 3: Different businesses structures and internal factors
affecting business 5
Conclusion 7
Reference List 8

2
Introduction
Execution of new methods and technologies in the daily routine and procedures of performing
business operations which include setting up various databases for best practices introducing
management systems for improving retention of employees. In simple words it can be said that
the business practices refers to the human experience and skills which are required for
delivering a service repeatedly. Basically it is a group of guidelines ideas for ethics which
percent the most efficient course of action in a specific situation of business. The purpose of
making this report is to analyzing the various types of companies and how they work. Second
section of this report shows the various companies from solar traders to Cooperative and
limited liability partnerships. Along with this it also shows the various structures of
organization and how the external factors of a business organization affect its performance.
Section 1: Different types of companies and how they work
Below mentioned are the various types of companies which are divided on the basis of their
scale of operation which include annual turnover and number of employees working in the
organization:
Micro business:
This type of business can be explained on the basis of employees and turnover. This type of
business glued it and working employees in the organization and it is necessary to have their
annual turnover less than £2 million (£1.7 million). Micro business performs the business
operations on a very small scale level for the purpose of earning profit for survival of life. This
type of business plays an important role in the economy of United Kingdom (Latukha, M.O.,
2018).
Small business:
This type of business can also be said as a privately owned corporation which includes
the involvement of more than 10 employees and less than 50. The annual turnover for small
business is a more than £2 million but always less than £10 million. Small cafes restaurants are
the various examples of small business and this business is owned by a single person who
perform all the activity is a of organization. It requires large amount of capital investment as
compared to micro business.
Medium size business:
After gaining a growth in small business it becomes a medium sized business as it include the
involvement of more than 50 employees but less than 250 employees (McLeod, S. and Curtis,