Types of Companies and Business Structures: A Comprehensive Overview

BSc (Hons) Business Management with
Foundation
BMP3002
Business in Practice
Assessment 1
Types of Companies
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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 4
Section 3: Different businesses structures and internal factors
affecting business 6
Conclusion 8
Reference List 9
1

Introduction
The aim of this report is to give a rapid overview of the various types of
businesses that exist in today's marketplace. The study analyses how firms are
categorized based on their nature and obligations using many instances. The
relevance of organizational structure is also highlighted in the report, with the two
most important types being outlined. The report also includes a PESTEL analysis to
help you understand the impact of external influences on the organization.
Section 1: Different types of companies and how they work
MICRO BUSINESS
A micro business is a type of small firm that meets the standards to be
classified as a "micro-entity." One of the requirements is that there are;-
 No more than ten employees
 The annual turnover can't be more than £632,000, and
 The total balance sheet can't be more than £316,000.
Anecdotally, these micro-businesses contribute to the Overall economy.
Microbusinesses are critical to the country's economic sustainability. Furthermore, it
benefits the economy by targeting on neglected rural and urban areas. This form of
microbusiness is typically started with the very same amount of capital, and it is
managed, operated, and controlled by the same individual (Aula and Mantere, 2020).
There are roughly 9.1 million individuals employed by these businesses. However,
there are 5.7 million micro businesses in the United Kingdom, with 95.72 percent of
them being privatized. It impacts the economy by ensuring social cohesion across
the British regions. This sort of business includes small companies’ usually family
entities and unique start-ups founded by ambitious people with a strong desire to
compete in a competitive environment.
SMALL BUSINESS
This category includes privately owned organizations with fewer workers and
lower annual revenues than larger businesses. In the United Kingdom, the
Companies Act of 2006 mandates that the:-
 Number of employees must not exceed fifty
 The annual turnover shall not exceed GBP 6, 5 million and
 The balance sheet total must not exceed GBP 3, 26 million.
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