Types of Companies

This report discusses different types of companies and their structures including micro, small, medium, and large-sized businesses, sole traders, partnerships, limited liability businesses, and cooperatives. It also covers internal and external factors affecting businesses with PESTLE analysis. Subject: Business Management, Course Code: BMGT101, College/University: Not mentioned.

Types of
Companies

Table of Contents
INTRODUCTION ..........................................................................................................................3
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.................................................................................................................................5
Section 3: Different businesses structures and internal factors affecting business.....................7
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Companies functions with several sectors in the management for getting positive
outcomes. The organisational structure plays an important role in terms of the management. It
will relates to the societal group of an organisation that will maintain the dealings and role of
projects that are to be followed as effectively. It will involve several course of activities that have
fundamental term of the management with effective set of activities with varied term of
opportunities (Advan, 2021). The following report will covers several term of business structure
and their activities and their fundamental motive and the way that how they perform their role of
work. It also involve several managerial structure such as sole traders, cooperative, partnership
and limited liabilities partnership. And at last it will deals with its factors that will get effects on
the management in considering the differing role of company and PESTEL analysis.
TASK
Section 1: Different types of companies and how they work
There are diverse term of the organisation that will evaluate the wide role of the business
to conduct various functional and working that will presented basic set of role of the
management. It will also linked with the various sectors in relation to the varied manner of
opportunities. As the betterment or growth in an organisation will achieved by effective and
efficient manner that are mentioned below -
Micro business
It will generally covers 6 to 12 employees or lower that it in the structure of the
management. They have their balance sheet and cash flow less than a certain period of the value.
The organisation of micro sector will have a fundamental term of dealings of the yearly sales
with $1,50,000 (Atz, and et.al., 2021). It will need lower than $45,000 cash statements to start
the business. For example, craft field, commercialise section and varied other.
Characteristic of a micro business Negotiable to change - A micro structure of management have fundamental dealing to
manage their organisation as per to it. It will relates to the varied term of fields for the
progression of their business.

 Company and capability specialisation - It will present global way that might be define
in the way of authorities as per to the nature and abilities of the business that will increase
the division in an organisation. Low overhead cost - The administrator in the micro structure organisation have lower
monetary value and it will also have less overhead fund in the functional cost.
 Freedom for the non- committed - The employees in an organisation who are capable to
choose their objectives and aims as according to their position and quality.
Small business
It is basically an effective dealings through which self owned organisation will manage
their fields with less set of values and employees in the business (Calisto, and et.al., 2021). The
organisation of small business will enable appropriate section of policies to maintain the
managerial structure. An organisation will follow appropriate fields in an organisation.
Characteristic of a Small business Self job role - It will focuses on the self job role that will relates with an organisation and
will created value of cost of certain aims to execute the managerial structure. Target oriented - It will focuses on the varied set of the plan of actions and tactics with
appropriate number through which management will be able to achieve their targets and
aims as efficiently.
 Fund allocating - By creating financial assets in the business to determine the field of
activities and the operations that are related with commercial enterprise and central way
to know that how it will execute it in the field of area. It will define it as the abilities
through which the organisational structure and quality of the management will get
managed with suitable accommodation and the manner of the targets in the company.
Medium size business
It covers several roles of the management that will focuses towards maintaining the roles
and actions at medium structured management (Castellano, Cerqueti, and Franceschetti, 2021).
It will present an efficient role of field that will get achieved with theorise section of the wide
area. It will offer job role opportunities up-to 300 candidate's with high rate revenue of 4.5
million in an effective manner.
Characteristic of a Medium size business

 Consumer dealing - It will enhance the roles while dealings with consumers who have
negative prospect towards business. As the management of medium-sized will try
efficient term of the tactics to overcome the problems and issues (Hulsegge, and et.al.,
2021). By such strategies it will be efficient for the business to manage the fundamental
methods of medium size structure of organisation with the purpose of growth and
advancement. Act quiet under pressure level – It will termed as the manner in which employees in the
management will get effected and also feel throwaway in an important way for them to
maintain their criteria in the managerial structured section.
 Dynamic adopted changes – It will generally connected to the way to manage an
organisational activities as per to the business methods. It will also categorize to
determine an appropriate manner of opportunities in the dynamic field of area.
Large size business
A large size of organisation will determine the suitable condition for person, who provide
opportunities to 4000 to 7000 candidates and their annual employee turnover ratio is higher than
4 billion. Large structure of organisation will effectively develop their varied term of activities in
terms of providing facilities to their customer.
Characteristic of a Large size business
As per to the manner of large structure organisation it will deals in managing the global
field of control in the management with invariant field of market area of qualitative term of the
activities.
Section 2: Different companies from sole traders to cooperatives and Limited Liability
Partnerships
Sole trader business
It covers the role and way of sole trader of the management that are specifically not broad
priced (Jucha, and Corejova, 2021). As in relation to it, various dealings and chores of duty will
get managed by the management in a wide term of manner.
Characteristic of Sole trader business Ownership in hand of individual – As it will owned by the person who might contribute
their own terms of assets and liabilities in business. The owners should maintain their

leaders in each and every situation by which they all can accomplish common managerial
goal. Freedom of task and rapid decision – As the person is the proprietor of the management
who are autonomous to present their functional and operational activities. They are also
reliable for making decisions in the business. Enjoying entire profit - The profitability and power in the business will relates with
varied characteristic of the business and their advantages as according to the execution of
the functions and operations.
 No separate entity – As there are no separate legal identity in sole trader organisation.
Partnership
A partnership is defined as a planning that will deals with two or more parties to manage
an organisational tactics and operations and their earning and position (Lin, Tian, and Zheng,
2021). As in order to the management, both individuals will share their net profit and benefits in
terms to get efficient set of profitability and productivity.
Characteristic of Partnership Limited existence – It have limited section of the existence that require in the business
organisation to manage it and functions it with the purpose of execution. It might have
consistent way of manner that include several roles with limited process in deed of
partnership. Mutual agency – When the respective people are in business they will able to maintain
the contract and cash flow statements in sequential manner with the aim of effective
partnership.
 Unlimited liabilities – Partners who utilise assets and liabilities under social then it will
be termed that they have unlimited liabilities in the business (Mamatha Shree, and
Gnanakumar, 2021). If the respective who might not use their job role head to manage
the courses of actions that require the price of value.
Limited liability business
Limited liabilities of the management is a separate and well-defined set of legal identity.
It will demonstrate the assessable financial gain in the banking concern account. As it might not
define to the functions of organisation with form of the management that provide the moderate
term of assets to their proprietor.

Characteristic of Limited Liability Business
 Separate legal entity - They have separate legal entity of limited liabilities of an
organisation through which the owner will deals with their terms of liabilities in global
field of the liability in an organisation.
Public limited liability business
It generally maintain the varied term of role in the management that will connected to the
voluntary management of staff member that are managed in a suitable way (Palomino, 2021).
They have separate legal identity as in effective way. It will focuses on stock exchange in the
business.
Characteristic of Public limited liability business
 Separate legal entity – The business of management have legal set of identity with
separate course of capitalist in a divisional field.
Cooperative
The cooperative is termed as self-dependent organisation that are voluntarily maintain the
dealings to fulfil the democratic targets with effective term of profitability, values and
standardised demands that all are maintained together with the purpose of controlling it.
Characteristic of Cooperative
 Voluntary membership - It is a basic set of term of principles of co-operation that have
common term of involvement or voluntary membership in the manner of the social
technology. It will put together and developed various terms of business to proceed the
fields of the cooperative area in an organisation.
Section 3: Different businesses structures and internal factors affecting business
Identification of different organizational structures
An organisation and its structure are get controlled in several fields in respect to achieve
the terms of targets in the management (Piwowar-Sulej, Krzywonos, and Kwil, 2021). It will
also determine that how the fields and orientation of organisational structure have considered
manner of high fields to lower fields in an organisation.
Various external factors that are affecting business

 Rate of inflation - The field of inflation defines the manner of the business management
that will get effected. It will directly have an impact on the economic development that
include an effective involvement term of section in an organisation.
 Legal factors – The legal set of structure will get manage the mode of earnings fixation,
managerial earnings, security and health at workplace and varied other (Suharyanto, and
Zaki, 2021). As it is generally managed as per to the section that will maintain the way
of management.
PESTLE Analysis
As by getting positive and negative prospect it will directly get affected on the
management. It will relates to the virtual term of value in the business that are efficiently relates
to execute various methods and plan of action to maintain the role of task. It will also consider
the global manner that involves intrinsic and as well as extrinsic factors that will directly have an
impact on the business. Political factor - It involves the section that are need to be use to set up the way of
political prospect as per to the power of the management. Economic factor - It determine the economical execution that will maintain the
economical advancement, revenue rate, rising prices, power rate and varied other that
might get effect on buying power of the customer. Social factors - It involves collection of social terms like growth field, existence of
statistical organization that have social term of barriers in the management. Technological factors – In this section it will involve the role to develop the management
as effectively with orientated terms in the component of actions and economic ratio in the
business of management (Wararatchai, and et.al., 2021). Environmental factor – It will involves the environmental and demographical
components that will get affected on the management to develop its global field of impact
on varied division of business.
 Legal factor - If an organisation will trade as globally then it will control the manner of
the relations as more effectively to maintain their orientation and situations as effectively.

CONCLUSION
From the above mentioned project it has been concluded that, there are varied organisation who
operates their efficient kind of tactics and methods to overcome the conflicts and issues in
between organisational operations and functions. It covers micro management, small
management, medium structured management, large structured management. They include the m
basic set of manner and the field that will have fundamental set of standards where it should also
identified the extrinsic section who will have an impact on the business.

REFERENCES
Books and Journals
Advan, S., 2021. The Impacts of Human Resource Management in Knowledge Management in
Small Companies. Journal of Humanities Insights, 5(01), pp.50-55.
Atz, U., and et.al., 2021. The Return on Sustainability Investment (ROSI): Monetizing financial
benefits of Sustainability actions in companies. In Sustainable Consumption and
Production, Volume II (pp. 303-354). Palgrave Macmillan, Cham.
Calisto, M.D.L., and et.al., 2021. Environmental Sustainability Strategies for Smaller Companies
in the Hotel Industry: Doing the Right Thing or Doing Things
Right?. Sustainability, 13(18), p.10380.
Castellano, N.G., Cerqueti, R. and Franceschetti, B.M., 2021. Evaluating risks-based
communities of Mafia companies: a complex networks perspective. Review of
Quantitative Finance and Accounting, pp.1-24.
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work, obesity and diabetes. International Archives of Occupational and Environmental
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Jucha, P. and Corejova, T., 2021. Ensuring the logistics of the last mile from the perspective of
distribution companies. Transportation Research Procedia, 55, pp.482-489.
Lin, S., Tian, S. and Zheng, L., 2021. Friend or foe: On a common shareholder relationship
between mutual funds and public companies. Journal of Financial Markets, p.100673.
Mamatha Shree, S. and Gnanakumar, B., 2021. 38. Housing Finance Companies in India–
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MANAGEMENT, 30, p.177.
Palomino, L., 2021. Waste Management Benchmarking in Industrial International Companies.
Piwowar-Sulej, K., Krzywonos, M. and Kwil, I., 2021. Environmental entrepreneurship–
Bibliometric and content analysis of the subject literature based on H-Core. Journal of
Cleaner Production, p.126277.
Suharyanto, S. and Zaki, A., 2021. THE EFFECT OF INFLATION, INTEREST RATE, AND
EXCHANGE RATE ON STOCK RETURNS IN FOOD & BEVERAGES
COMPANIES. Jurnal Aplikasi Manajemen, 19(3).
Wararatchai, P., and et.al., 2021. Choices of Non-Equity Mode Versus Equity Mode for
Multinational Companies. Journal of Management Science Review, 23(1), pp.101-212.