Types of Companies and Their Functions in Management

This report discusses the various types of companies and their operations and functions, including sole traders, cooperatives, and limited liability partnerships. It also explores how external factors such as inflation, exchange rates, and demographics affect businesses. Gain valuable knowledge about business structures and external influences from Desklib.

Types of
Companies

Table of Contents
INTRODUCTION ..........................................................................................................................3
Different types of companies and their functions in the management........................................3
Different companies from sole traders to cooperatives and limited liabilities partnership.........5
Consider different business structures and how external factors are affecting businesses.........8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
As there are different form of business in the field of the legal
structure that are figured as the form of business administration. It is an
organization of individuals that set about the administration activities in a
abstracted form of the business in a perceptual way with the common
framework. This report includes that various forms of companies and their
operations and functions. As well as it also covers the forms like sole traders,
cooperative and limited liability partnership(Baruffaldi, Accorsi, Manzini, 2019)
. The company considered in this report is Mark and Spencer. It partly
involves the business structures and their factors which are externally
affecting their business which includes management structures and PESTEL
analysis as per terms and values.
TASK 1
Different types of companies and their functions in the management
Various individuals who involves in the structural and values of the
business are consider as the common form to adjust the on going phase and
opportunities. As the growth and development in the management as on the
basis of liabilities, faculty and other controlling panels.
 Micro business: It is basically represents the term to employing nine
individuals or less than it in the administration. Asda operates the
individuals and managerial functions that requires less than $50,000
to start the administration company. Some of the examples for micro
business is Asda who compete Mark and Spencer and other business
administration that are considered as micro enterprise(Blanc Serrier,
Ducq, Vallespir, 2017) .
Characteristic of a micro business
Flexible to change: A micro business make their adjustments as according to
their management range in the organisation for analysing various sections.
Industry and skill specialisation: It tends to be specialise in the manner of
advisor with ability and knowledge at the maximise level in the market.

Low overhead expenses: The executives of the micro business with lower
cost that have fewer earnings to pay out with the less operational expense.
Independence for the non- committed: Mark and Spencer's individuals are all
set ready to choose their objectives and tracks as according to their terms
and values.
 Small business: It is generally termed as privately owned
corporations, partnership and sole proprietorship that have few
amount of candidates like Mothercare organisation that is being able to
offers the government support that is frequently enhance the
pattern(Carvache-Franco, 2020) . It varies the supporting and depending
term on the country and industry.
Characteristic of a Small business
Self employment: It concentrates on the self employment in the managerial
administration which is created by the value of primary intention to perform
the line of work.
Goal oriented: It concentrates on the plan of action that are requires in
individuals to achieve their goals and targets successfully.
Budget making: By creating budget in an organisation to initialise the actions
and functions about their role that how it performs in the sequence(Condé,
Cisel, 2019) . This is the sense of knowledge that phase it by funds and it
might also manage the decisions to orientated its target in the organisation.
 Medium size business: This type of business will considers as the
family owned business by managing their work and size of the
business of John lewis partnership that is well established and have an
observable record through which it will manage the complex in the
management structures that formulates the general entities.
Characteristic of a Medium size business
Consumer dealing: It enhance to analysis the negative consumer and turn
them into their positive consumer can also a key factor of medium size
business growth and development.

Stay calm under pressure: As by meeting unwanted consumers in the
business, it affect their management that is why it is important for them to
reduce the stress in organisation.
Quickly adapt changes: It encompasses to handle the situation in the market
as per their market strategies and categories to initialise the manner of
framework(Giacosa, Ferraris, Bresciani, 2017) .
 Large size business: A large size business is a business that outlooks
the following conditions for employee, that at least 5000 to 6000
employees and it has annual turnover of higher than 1.6 billion euros.
Large company like Aldi have made serious efforts to provide
individuals as adequate faculty to its series.
Characteristic of a Large size business
As opportunities are raising as to the large projects in the business to
sustained in the market that are observing the nature of work.
TASK 2
Different companies from sole traders to cooperatives and Limited Liability
Partnerships
 Sole trader business: It is the easiest manner of business structure
that is generally an not expensive set of ratio(He, Chiu, Zhang, 2020) . It
is directly responsible for the operations and task of the management.
Characteristic of Sole trader business
Ownership by an individual: As it is owned by single respective that
contributes its capital and terms. The owner is also termed as manager of
their business that covers situation.
Freedom of work and quick decision: As the individual is the owner of the
business that look up the nature of work.
Enjoying entire profit: The profit and benefits of entire business and as well
as superiority advantages that are for their performance.
No separate entity: There is no separate legal entity in sole trader business.

 Partnership: A partnership is an arrangement between two or more
people to supervise business operations that share their profit and
liabilities(Hușman, Brezeanu, 2018) . In the respect of company, every
individual shares both benefits and as well as profit and liabilities.
Characteristic of Partnership
Limited life: It concern partnership agreement that is requires in the business
to operate and its function to get execute as it may continue the termination
or withdrawal procedures in a partnership.
Mutual agency: In a partnership the individuals are allow to manage the
contract and agreement that offers to be in a series with the function of
operations.
Unlimited liabilities: Partners who may utilise their assets as per the
management ratio. If one individual who doesn't use the adequate amount of
asset as per their deed then it will become liable by the creditors as it
requires the payment.
 Limited Liability Business: Limited liabilities business is a separate
and distinct legal entity. It defines that a tax identification number or
active bank account should be needed into it. It is not a corporation
under state rule of legal form of a business that provides the limited
liabilities to their owner(Knezović, 2018). It is termed as the flexibility
that provides to business owner in view of the partnership.
Characteristic of Limited Liability Business
Separate legal entity: There is separate legal entity of limited liabilities of
business in which the owner is deal their own assets to incurred their debt as
group of an individual
Limited liabilities: As per to this, it will satisfy their staff faculty with limited
liabilities protection that it may ensures the case of business that will
manage by the other partners. It will directly responsible by it.
Flexibility in taxation: It ensures their member with terms of tax liabilities in
the manner of tax that will determined the corporation to select the way the
organisation want.

 Public limited liability business: It is usually prefers as the public
company that relates the voluntary association of staff faculty that are
incorporated and adjusted for separate legal entity for the liable
manner (Koklic, Kukar-Kinney, Vegelj, 2017) . The public limited
companies are recorded on the stock exchange where it traded as
publicly.
Characteristic of Public limited liability business
Separate legal entity: As the term company is a legal entity that has
separate entity for mentioning the further shareholders in a staff faculty.
Easy transferability: It relates that a shareholder of public limited business
can easily transfer to its shares to the public administration. There is no
restriction on transferring the share to the public or it inviting the public
section.
 Cooperative: A cooperative is an independent association of
individuals that are voluntarily guide to meet the common goals and
set of objectives with economic, social and cultural needs that are
jointly owned by it.
Characteristic of Cooperative
Voluntary membership: It is the first key principles of co- operation that have
common interest in the rules of the society that are jointly prepared to
continue roles of the cooperative society.
Open membership: As apart from being in the nature of work , as the
membership of the organisation is all set to up with caste, sex, etc. The co-
operative society managing their committee may also practices.
Finances: The finance of a co- operative society that are protected by the
members through which it influence the shares(Ku, Hsu, Wu, 2020) . It may
generally for the weaker sectors as their capital collection will meagre.
Liabilities of faculty: As like the company the co- operative society also
managed their liabilities for limited basis that will include in the manner of
cooperation.
TASK 3

Consider different business structures and how external factors are affecting
businesses Organisation structure: An organisation structure is a manner that
various actions are managed in respect to successfully accomplish the
targets and objectives of an organisation. It also determines how
source of information flows in different levels from higher level to lower
levels in an organisation(Panchenko, 2019) . It generally design by the
executive or any individual to improve the productivity or profitability
of business. Various external factors that are affecting business
Rate of inflation: The field of inflation can exclusively affect the Mark and
Spencer as by the raising of price. It directly affects the economy which leads
the economic growth, higher interest rate and volatile movement of
currency.
Exchange rate influencing economic activities in a country: Organisation
should know the sections to realize the dynamic changes in the business that
is economically transitory that represents the longer term of knowledge that
are changes at fluent terms.
Demographic factors: It includes population, age distribution, religious
composition, literacy level, inter-state migration, etc. that includes the
company policies and plans.
Legal factors: The legal term of framework that decides the legislate of wage
fixation, managerial remuneration, safety and health at work, etc. it is
centrally planned as per to the sections that fixes up to the government.
 PESTLE analysis and Various external factors that affect the
performance of a business
As by realising positive and negative effects in business or out side the
business, it will become easy to put appropriate policies and task to handle
any situation in market(Tao, Li, 2017). It may also measure by considering
internal and external factor that are directly affecting the business.

Political factor: It includes the factor that are needed to be utilise while
processing the manner of quality of a potential market.
Economic factor: It determines the economical performance that involves the
economic growth, exchange rates, inflation rates, interest rate, etc. that
affects the purchasing power of consumer.
Social factors: It includes population trend like growth rate, age of
distribution, etc. that is cultural barrier in the business.
Technological factors: This factor may also influenced the decisions to make
business as more aware in the source of activities and productivity in term of
Mark and Spencer.
Environmental factor: It includes ecological and environment factors that
affects the company to grow it more that affects the other companies who
operates it (Tikkinen-Piri, Rohunen, Markkula, 2018).
Legal factor: If an organisation trades at worldwide then it will becomes more
particularly to set their terms and conditions.
CONCLUSION
It can be concluded from the above report that, a company is set of
administration management that creates their laws. It also promotes and
motivates start ups and young businesses at each area of field to be noted
as a sole proprietorship firm. It includes micro business, small business,
medium size business, large size business to enhance the management term
and values where it also determined the external factors who affects
business and management.

REFERENCES
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