Types of Companies and Their Characteristics - Desklib

This report discusses the different types of companies and their characteristics, including micro, small, medium, and large businesses, sole traders, partnerships, limited liability businesses, and cooperatives. It also provides examples of each type and discusses Morrisons, a supermarket Plc. The report is useful for students and professionals studying business and management.

Types of Companies
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Contents
Introduction 3
Section 1: Different types of companies and how they work
3-4
Section 2: Different companies from sole traders to cooperatives
and Limited Liability Partnerships 4-6
Conclusion 9
Reference List 9-10
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Introduction
The aim of this report is to analyse the business in practise as it helps in managing and
generating the revenue. Business is one of the mostly important method to generate profit and
to frame and provide essential goods and services to all the individuals. Their are so many
business practises which are being made in order to formulate the essentials for the country
they are like, small, micro, medium and large. As they all work in order to manage the
profitability and enhancement. The organisation chosen in this report is Morrisons which is a
supermarket Plc. Headquartered in England UK ( Madhani, 2018). In this report their will be
provided details about the types of companies.
Section 1: Different types of companies and how they work
In order to manage the business practises it is important to manage and establish the
companies some of which are mentioned thereunder:
Micro business: These are the small business practises which are carried by the
single individual in order to make the earning for living. These are considered to be
smaller and are generally handled y the sole owner. In all such business practises
there are about less then 10 people are working (Hall, and Martin, 2019). All such
practises are mainly being made in the rural areas so as to provide the facilities to all
the rural areas and also to manage their living standard. The annual turnover of all
such business are for about £2 million. Some of the example of all such kind of
business are like, carpenters, plumber, electricians and many more.
Small business: These are the business practises in which their were about 10-50
employees being working in the company and the use to work in order top manage the
employability in the rural areas and a;so to provide essential services and facilitates to the
persons. These are framed to manage the capacitive source. All these business can be
managed by the partners or the single owner itself. As their main aim is to increase the
earning and profit in company and also to helps in focusing on providing better resources to
all the rural and local areas. Their annual turnover is for about less then £10 million. For
instance, Broadsword event house, Fourex, Marshfield Bakery are some of the major
example of small business.
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Medium size business: It is the organisation which use to make all the operational
activities and also endure to manage the capital funds through which they can manage the
investment and can also led to implement the culture. Medium business are generally have
50-250 employees working in the company and there aim is to earn the income in order to
increase the economy and also to manage the establishments. It emphasize of growth and
profitability and also work with partners and the corporations (Netshakhuma, 2019). The
annual turnover of all such business are like less then £50 million. They tends to expand their
business practise so as to maintain the growth and also to generate the revenue and
employability in all the locations. For instance, Capitify is medium business company helps
in managing the research intelligence.
Large size business: It is the expanded and the big companies which use to manage
the largest growth and cover the major areas and sector. It maintain and focus on growth of
the country and a;so in increasing the economy globally. They provides major job
opportunities and it promotes and manage enhancement in the living areas. It have resources,
supplies and all the other facilities in adequate manner and also manage the growth of the
business with expanded methods (Fatoki, 2019). They also work globally and frame the trade
relations with other countries in order to create and expand economy. The employees
working under such company are more then 250 and the annual turnover will be around more
then £50 million. Some of the example are like, Dyson, Tesco and many more.
Section 2: Different companies from sole traders to
cooperatives and Limited Liability Partnerships
Sole trader business: All such business which are being carried by the single
individual in order to manage the company. They generates the fund either through their own
savings or by taking money from bank. It also manage the efficient business practises. All
the liabilities and the taxation are being carried out by them. The manager or the owner of the
company use to manage all the business dealing and the operations in order to maintain the
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growth of the company. The individual who implement such business generally considers to
manage the legal obligations and also focus on operational activities. For instance, carpenter,
architecture, hairstylist and many more.
Partnership: All such business practises which are carried by two or more person in
order to make the growth in the country and also focus on managing the economy. It
implicates and provides the agreement in which all the funds are being managed by the
partners through their savings or they can also abrupt to take the money from shareholders
and investors. All the decisions taken by the company use to be given by both the partners
and they have to agree ion same terms and conditions. It will not have any separate legal
entity and the agreements and the decisions are being made according to it for limited life.
For instance, Deciduous partners Ltd. Is a partnership firm.
Limited liability business: It is mainly a private company which frames a business
structure and carries the legal entities in order to frame the company. LLC considers to be the
private firms and they combines with different aspects like the partners and the corporations.
It focus on managing the tax flow and also on managing the flexibility with limited liability
status. It is a flexible company as choose different regimes for taxation, and also provides
protection to all. For instance Westinghouse is an LLC (Ezennia, and Mutambara, 2021) .
Public limited liability business: All those business practises which are privately
being owned and managed. It creates and frame the easy trading practises and also helps in
managing the voluntary association for the general public. It also helps in managing the
organisation and carry the separate legal entity. The shareholders and the other directors are
involved in all the formation of the company (Nikitina, and Lapiņa, 2019). It also helps in
making the systematic code of conduct through which the government can impose all the
taxation. For instance Morrisons is a Plc. Burberry, Rolls Royce are some Plc. Which focus
on earning profit and generating revenue.
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Cooperative: All those business structure which are privately being managed and framed
and are concerned for the growth of individual. They do not have any kind of government
interference as no such regulations are imposed on it. They establish a major brand image in
order to maintain the company good and also to regulate the larger market areas. It focus on
sustaining the large market areas and also to manage the product. For instance, Dyson is a
cooperative company.
Conclusion
From this above report it is concluded that business in practise is the methods in
which the organisation and the companies use to work and manage all the implications. Their
mainly have different type of business practise like micro, small, medium and large. Micro
are the small business made by single individual in order to manage the living standard.
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Reference List
Ezennia, J.C. and Mutambara, E., 2021. ENTREPRENEURIAL FACTORS INFLUENCING
THE NEED FOR HIGH ACHIEVEMENT ON AFRICAN IMMIGRANT-OWNED
MICRO BUSINESSES IN DURBAN, SOUTH AFRICA. Academy of Strategic
Management Journal, 20(1), pp.1-11.
Fatoki, O., 2019. Organisational culture and environmental performance of hospitality firms
in South Africa. Journal of Environmental Management and Tourism (JEMT), 10(03
(35)), pp.575-589.
Hall, J. and Martin, B.R., 2019. Towards a taxonomy of research misconduct: The case of
business school research. Research Policy, 48(2), pp.414-427.
Madhani, P.M., 2018. Building a customer-focused culture in organisations: developing 7Cs
model. International Journal of Business Excellence, 16(2), pp.199-232.
Netshakhuma, S., 2019. An analysis of the implementation of an enterprise content
management system: a pilot project of the South African national parks. Innovation:
journal of appropriate librarianship and information work in Southern Africa,
2019(58), pp.53-77.
Nikitina, T. and Lapiņa, I., 2019. Creating and managing knowledge towards managerial
competence development in contemporary business environment. Knowledge
Management Research & Practice, 17(1), pp.96-107.
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