Types of Businesses

This document provides an overview of different types of businesses, including micro businesses, small businesses, medium-sized businesses, and large businesses. It explains the characteristics of each type and provides examples. The document also discusses sole trader businesses, partnerships, limited liability businesses, public limited liability businesses, and cooperative businesses. Additionally, it explores different organizational structures and how they impact business productivity. Finally, it examines the influence of external factors, such as political, economic, social, technological, legal, and environmental factors, on business performance.

TYPES OF BUSINESSES

Table of Contents
INTODUCTION..............................................................................................................................3
MAIN BODY...................................................................................................................................3
Section 1 different types of companies and how they work...................................................3
Section 2 Different companies from sole traders to cooperative and limited liability
partnership..............................................................................................................................5
Section 3 identify different organisational structures and explain how organisational structures
affects business productivity..................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCE.................................................................................................................................11

INTODUCTION
Business are demonstrated as an organization which are probably engaged win industrial,
enterprising entity and in commercial and professional activities.. In other this could be
explained as business have been designed with a motive to enhance the society and generating
profit. Business organization have structured therefore to carry for the commercial enterprise.
The number of organizations which have been predicted by the authority systems with the
contract of incorporation, exchange, and property rights. There main aim is to be carried on the
commercial enterprise for the purpose of providing service and goods so that they could meet the
needs of the customers (Sharma, and et. al., 2020).
MAIN BODY
Section 1 different types of companies and how they work
Micro businesses Micro business are demonstrated as a small type of business in which primarily
have minimal 10 peoples. They mainly operates a very small scale. These are known as small
business which requires fewer peoples. The microenterprise they probably based on the lower
scale and family business, in certain businesses lesser employing are needed. Boss brewing
company, this is a micro enterprise company is located in the Swansea, in united kingdom. It was
founded in 2014, the industry of this company produce beer, an- alcoholic beer and malt liquor.
Most importantly this company is led by a women named Sarah and along with this had a multi-
winning award.(lewnia, Guenther, and et. al., 2020).
Characteristics
Profitability and lower revenue
The micro- business, they usually have lower revenue compared to the large scale business. In
these business maximal revenue is allowed approximately $21.5 million annually for the service
business.
Fewer employees
Micro businesses they have less number of employees due to this reasons they do have smaller
teams. These businesses are mostly run by smaller teams or single individuals.
Small business
Small businesses they are demonstrated as privately owned corporation which basically have few
members of employee as well as less revenue per year. These type of business functions on small

scale which includes fewer employee and additional less capital investment. Small business are
those which businesses produce number of services and goods on the small scale. These are
those business which devotes in terms of machinery and plants approximately $34,420 .There are
some example of small scale industries which includes candles, toothpick, paper, and chocolates
etc. Small scale business are usually established in the urban areas and they are known as
separate unit. Davison canner was found in 1978 in 19 April. It is situated in Craigavon, in united
kingdom and it was found by the Alan Davison. This is a industry of processing fruits and
vegetables.
Characteristics of small businesses
Small market area
The Small scale businesses they serves in the smaller areas as compared to the bigger
corporation and private businesses, they primarily serves single communities for example they
established convince store in the rural towns.
Limited area of fewer locations
The small businesses are mainly founded in the limited area. These type of companies do not
have outlets in the multifarious countries or states. The wide range of small scale industries they
probably operate from service outlet, single office as well as retail store.
Partnership ownership
In the terms of business organization the corporate form does not suit to the small operations
therefore these forms they often provides highest degree of control over the owners while
reducing expense which are associated with business registration.
Medium sized business
The medium businesses they usually have maximal number of employees 250, in certain
businesses the investment in terms of machinery and plants exceeds between 5million to 10
million. These type of business they works in a fair manner in order to earn fair profits thus to
enhance their standard of living. Medium business are demonstrated as whose personnel
numbers they usually falls below the limits. These are used by the international organization
which includes European union, world trade organization, and in addition world bank and united
nations. Verdant leisure , it well known for holiday park company and it was found by Graham
Hodgson. It was located in northern England and was launched in 2010.
Characteristics

 Decrease in regional imbalance
 They have higher capacity for the purpose of innovating exports.
 Abilities of innovation – Medium businesses they have the capabilities to innovate their
product, because they do have well skilled and experience holder workers.
 Flexibility – They are quite capable of adopting certain changes which mostly occurs in
the market areas.
Large business
Large business they generally have larger number of employees and additional to this, they do
have large revenue as well as large sum of assets. These type of organization, they commonly
have management functions which includes research, operations, human resource and finance
and additionally development. They do have large number of operation on the daily basis, they
commonly have more employee compared to the small business. The large sized businesses have
been characterized by the large number of business communication, clients, and contacts.
Unilever this is a multinational company of the consumer goods and its headquarter is situated in
London England. There products includes soft drinks and energy drinks. It was founded in 1933
by the Samuel van den berg.
Characteristics
Obtainable supplies
Large sized business they have larger group of employees due to this reason they they could
conduct numerous activities at the higher levels.
Section 2 Different companies from sole traders to cooperative and limited liability partnership
Sole trader business
A sole trader is that who runs their own organization or in other terms could be called as
self employed. A sole – proprietorship, this means a person exclusively responsible for their
debts and the business. This statement means if any business face any losses they have to pay
from their own pocket. This process is known as unlimited liability. When an individual open
their own business is known as sole- proprietorship. In this type of business all the decisions and
activities are taken by the owner and along with this all the decisions are taken in effective
manner. Barclays company it is founded in 1690 by the James Barclays and this has been
situated in England.
Characterstics

Unlimited liabilities – The sole – proprietorship business they generally have unlimited liabilities
as well as they liability to clear all the personal assets and credits of the organisational.
Fewer lawful formalities
In this type of business they have very few legal formalities thus to form or run the activities of
business.
Partnerships
Partnership is defined as when more than two peoples they form a business as well as divide
their responsibilities as a partners, this process is called partnership. Whenever they achieve any
profits that would be split between the two partners and in this way they both are responsible for
the of tax, tax and profits both should be shared between two partners. Pottery barn this is
company of partnership and it was founded by the Morris sec-on. It is situated in west Chelsea,
Manhattan in 1949.
Characteristics
Legal agreement – In the terms of partnership business always responsibilities are taken by both
and all profits are shared among both. However taxes are paid individually and there is one legal
agreement is taken by the both partners which explains the instructions , rules and regulation
about the organisations.
Limited liability businesses
This business can be defined as running a business by two or more than two peoples, but both the
partners they are not liable for their personal debt of business which cannot be paid this
statement means their liability is mostly limited to the expenditure. Sainsburry company this is
second largest company it was founded in1869 by the holborn.
Characteristics
Restricted liabilities – In the terms of business both the partners might have less and limited
liabilities during the investment on the business.
Easily in corporative- The process of limited liability is quite simpler, there are no number of
formalities while establishing a business.
Public limited liability business
These are the business which are demonstrated as in which an organisation devotes its number of
shares to the community or public. In such type of business there is no requirement of maximal
employee, exclusively only 7 members are required. They share minimum

capital$50,000.Burberry this is a British company of luxury fashion and its headquarter is
situated in London. This company was founded by the Thomas Burberry and it was founded in
1856 in Basingstoke.
Characteristics
Name – The names of the companies they often differ from public organisation to private
organisation.
Directors
In the phase of public limited business there is entailing of at least 3 directors who could easily
handle the business , no maximal number of directors are required.
Cooperative
corporation, this term declares that business is legal entity and separate and this type of business
would be guided by the number of officers which are called as board of directors. Corporative
has been associated with the several functions which includes labour, banking as well as
economic functions.
Characteristics
Democratic control – The corporative sector is guided by the directors and controlled by the
members those are elected in the meeting. However all the decisions will be taken by the
member of an organisation.
Finance – In the sector of corporative the community finance would be allocated by each
member og an organisation by buying shares.
Section 3 identify different organisational structures and explain how organisational structures
affects business productivity.
Identification of different organizational structures and explaining how does organisational
structure affect business productivity
Organisation structure they mainly have impact on the performance of employee. This means if
there is poor structure of an organisation this would low the productivity, as well as no bonus or
no incentives are given, or less delegation this is known as poor organization. There are different
types of organizational structures which are mentioned below;
Hierarchical organization structured

The organizational chart which have pyramid – shaped they are refer to as hierarchy
organization. They have very common structure and their commands comes from the top for
example CEO or the manager.
Functional organization structure
 This is similar as hierarchical organization, they begins with the positions which have
greater responsibilities and the process goes on from top to down.
 Function organisational structure they are common type of structures which usually
divided into small groups which includes marketing and finance.
Divisional structure
 In this type of structure workers of the company they are commonly depend on the
projects and the products for the satisfaction of the customers.
Matrix structure this combines with divisional models
 A matrix structure is defined as which mainly combines the elements of the divisional
models and functional models, this process firstly divides the group of the peoples
according to the specialization departments then afterwards separates them into
divisional products and projects. In this structure more autonomy have been given to
the team members therefore this is expected for them that should take responsibility
for the work.
Flat organizational structure
A flat organizational structure is that which probably disturb the whole systems of top- down
management of an organisation. This structure is generally decentralized because everyday boss
shouldn’t be there. Furthermore each and every employee should feel that they are boss for
themselves. There are number of companies those are adopting such type of organisational
structures therefore to establish a top- down management system for the purpose of temporary
events and projects.
How different external factors affect the performance of a boundaries of a business
PESTLE analysis
The external factors they mainly exists outside the organisation or outside the boundaries but
they do affects an organisation whether directly or indirectly.

Political factor – There are numerous political factors which affects the enhancement and
performance of the markssphencer which include policies, national policies, rules and
regulations and policies of foreign trade.
Positive impact – If all these policies are complied in a good manner thus an organisation would
work smoothly.
Negative impact – Certain change in the policies would affect Markssphencer.
Economic factor – The economic factors they affects markssphencer in both manner positive as
well as negative, there are number of economic factors which includes inflation rates, economic
growth and interest rates.
Social factor- There are many social factors such as cultural barriers and income distribution and
they often impact on the markssphencer . An organisation they should utilise all the factors in
order to enhance the performance.
Technological factor
There are number of technological factors which include automation, change in technologies as
well as advancement in terms of technology .These factor they affects the well performance of
the markssphencer.
Legal factor
Legal factors include industry regulation and labour laws and laws related to health and safety
they usually impact on the performance and developing phase of an organisation.
Environmental factor
There are several environment factors which affects the working place of an organisation and
affects the performance as well as the functions and the harmony atmosphere of the organisation.

CONCLUSION
As per discussed above that business organization very essential, because they only decide that
how structures have been formed and further how are they useful to accomplish the goals.
Businesses they have been established to improve the society as well as gor generating the
maximal profits.

REFERENCE
Books and Journals
Sharma, and et. al., 2020. The organization of customer support services. European Journal of
Marketing.
Olson, Johansson, Carvalho, and et. al., 2018. Open source ERP business model
framework. Robotics and Computer-Integrated Manufacturing, 50, pp.30-36.
Plewnia, Guenther, and et. al., 2020. The Transition Value of Business Models for a Sustainable
Energy System: The Case of Virtual Peer-to-Peer Energy Communities. Organization &
Environment, p.1086026620932630.
Plewnia, Guenther, and et. al., 2020. The Transition Value of Business Models for a Sustainable
Energy System: The Case of Virtual Peer-to-Peer Energy Communities. Organization &
Environment, p.1086026620932630.
Rezaei, and et. al., 2020. Internal E-Marketing Alignment with total corporate strategy in
Business Organization. Quarterly Journal of Public Organzations Management, 8(2),
pp.39-54.
Rezaei, and et. al., 2020. Internal E-Marketing Alignment with total corporate strategy in
Business Organization. Quarterly Journal of Public Organzations Management, 8(2),
pp.39-54.