Types of Companies: Sole Traders, Cooperatives, Limited Liability Partnerships

This article discusses different types of companies and their characteristics. It covers micro-businesses, small businesses, medium-sized businesses, and large businesses. It also explains the features of sole trader businesses, partnerships, limited liability businesses, public limited liability businesses, and cooperatives. The article cites relevant sources to support the information provided.

Types of Companies

Table of Contents
TASK ..............................................................................................................................................3
Section 1: Different types of companies and how they work.....................................................3
Section 2: Different companies from sole traders to cooperatives and Limited Liability
Partnerships.................................................................................................................................4
REFERENCES................................................................................................................................7

TASK
Section 1: Different types of companies and how they work
In respect to manage the business practices it is very essential to establish companies that
defines work and some of the types of the companies are defined below:
 Micro-business- It is defined as the small business practices which is carried out by an
individual in respect to make better earning that generates value for essential livings.
These types of the organisations are generally small and ore owned by the sole
owner(Iovino and Migliaccio, 2019) . In this the business practices are no. of people who
are working in it are not more than 10. Such activities are mainly being used in the rural
areas that helps in management of the living standards.
 Small business- This includes the business practices that have 10-50 employees working
in the organisation and the use to work in order to manage the employability in the rural
areas that provides necessary services and the facilities to the people. All such business
activities can be managed in form of partnership or single owner itself. As their major
aim is to enhance the earnings and profits in the company and also provides helps in
better resource management in rural and local areas. Their annual turnover is less than 10
million.
 Medium sized business- It is defined as the organisation which is used to make all the
operational tasks and make sure to manage the capital funds by which they can manage
the investment and also led in application of the culture. The range of employees working
in this type of organisation are 50-250 and the aim is to earn effective income with the
increase the economy and build establishment (Migol, 2018) . It focuses on the growth
and the profitability of the organisation with the working in the partnerships and the
corporations. The annual turnover of the medium sized business are less that 50 million.
The main reason in maintaining the growth is to generate the revenues and the
employability in all such locations. For example, captivity of the medium business
company in order to manage the research intelligence.
 Large size business- It is defined as the big companies which is operationalizing their
services on large scale and use to manage the largest growth which covers the major area.
They generates the major opportunities and manages the increment of living areas. They

have adequate resources supply and all the other facilities in the requires manner with the
management of the growth of the business in the expanded methods. These businesses
works globally and frame the trade relations with the other countries in order to build and
expand economy. The employees that works in the company are more than 250 anf the
annual turnover is more than 50 million.
Section 2: Different companies from sole traders to cooperatives and Limited Liability
Partnerships
Sole trader business: This is the type of a business where there is a single individual involve in
order to conduct the business activities and various functions. There is a single owner in sole
trader business. The owner generate the funds for conducting business from their own savings or
they can also prefer taking loan from the bank. It is also identified that in such type of business
the all profits and liabilities are owner by a single person(Rovanto and Bask, 2021) . The single
person is responsible for making all kind of decisions and manages all the roles and
responsibility. The sole trader also deals in various aspect where they have a motive of earning
profits and maintain growth of the company.
Partnership: This is defined as the business where two or more than two people are involved in
order to make growth for the business organisation. There is a agreement which can be made in
which all the necessary items are been written such as profit ratio and everything. This is the
agreement on which the partnership can be conducted for the motive of earning profits. this is the
type of the business where all kind of decisions are made with the mutual aspect where all the
partners need to participate. It is very important for the partners to have a mutual conditions
which need to be agreed by all the partners included in the business organisation(Totawar,
2020). In this type of the organisation the profits and liabilities are equally divided or the ratio
which is decided at the time of agreement between the partners.

Limited liability business: This is the type of business organization which is defined as private
company which frames a business structure and also included the legal entities in order to frame
a business organization. The limited liability business is considered as to be the private company
and this also combines with the various different aspect such as corporations and partners. This is
the type of company where the organisation focus on the managing of the flow of tax and also it
concentrate on managing the flexibility. For instance Westinghouse is an LLC
Public limited liability business: This is the type of business which has been privately owner
and managed. This is the organisation which offers shares of stick to the general public. It is
identified that the buyers of the stock has limited liability. This means that the buyers are not
responsible for any kind of losses for the public limited liability business. In this type of business
it also assist in making the systematic code of conduct in order to impose all type of taxation by
the government bodies.
Cooperative: This is the type of business organisation where the business structure is privately
been managed and this focus on the grown of the individual. In such type of business
organisation there is no type of interference of government bodies in terms of rules and
regulations. The cooperative business organisation focus on establishing the brand image in
order to target the large market area.

REFERENCES
Books and Journals
Iovino, F. and Migliaccio, G., 2019. Energy companies and sizes: An opportunity? Some
empirical evidences. Energy Policy, 128, pp.431-439.
Migol, E.V., 2018. The concept of joint value creation and transformation of the business model:
Peculiar properties of companies different in the type of production and economic
interaction. Finance: Theory and Practice, 22(2), pp.160-170.
Rovanto, I.K. and Bask, A., 2021. Systemic circular business model application at the company,
supply chain and society levels—A view into circular economy native and adopter
companies. Business Strategy and the Environment, 30(2), pp.1153-1173.
Totawar, A., 2020. Agglomeration of tech companies.