Types of Companies and Their Characteristics

Types of Companies

Table of Contents
INTRODUCTION.......................................................................................................................................3
MAINBODY...............................................................................................................................................3
Section 1......................................................................................................................................................3
Different types of companies & how they work......................................................................................3
Section 2......................................................................................................................................................5
Different companies from sole traders to cooperatives and Limited Liability Partnerships.....................5
Section 3......................................................................................................................................................6
Different organizational structures & organizational structure affects business productivity..................6
Using PESTLE analysis explain how different external factors affect the performance of a business.....8
CONCLUSION...........................................................................................................................................9
REFERENCES..........................................................................................................................................10

INTRODUCTION
As per the current scenario, there are various type of companies are regulating in the
society e which are providing their best contribution to develop the economic situations and
living standard of the people. Some different type of companies includes various ownership
service structures, size, scale, another resource full consideration which are essential to run a
company smoothly at the marketplace (Aithal, 2017). In UK, there are numerous kinds of
companies like micro, small, medium and large playing essential role in the development of the
communities and societies. The main motive of this project is to discuss about different type of
companies and determine how they work. This report also explains about many characteristics of
the companies. This report will also discuss different ownership structure which is hold by the
company. This report considers Sainsbury's company which contain second rank ok as the
largest business corporation in term of retailing multinational company. This company
established in 1869 and headquartered in London, UK. This report applies PESTLE analysis to
evaluate the affect of external environment factors on the performance of the firm.
MAINBODY
Section 1
Different types of companies & how they work.
There are different kinds of Companies running in UK that contain different type of
purpose, scale, size, turnover rate. In UK, micro, small, medium and large type of companies is
doing their business nationally and internationally and provides job employment to the rural and
urban people. The description of different type companies and their characteristics are as
follows-
Micro Companies
Micro company started by the individual which contain small size and scale and created
by the Innovative ideas by the entrepreneurs. In micro firms less than 10 employees can perform
their task and these type of firms maintain turnover £2 million.

Characteristics
 Low level of operations - In micro company, the business activities and performance are
operating at low level. This is contains as the initial level of business. Limited participants - In these kinds of companies, limited participants are involved to
perform day to day operations.
Small Companies
This type of Companies mainly privately owned and controlled by the one single people and tow
to more people. Small companies regulate specific ownership structure like sole proprietorship,
corporations and partnership. In small companies less than 50 members can work & the turnover
rate contain under £10 million.
Characteristics
 Cover small market area - Small businesses business operation is not very large so that it
covers only small market areas. Small businesses mainly cover niche market and local
market (Brandano, Detotto and Vannini, 2019). Small team of members - There is only less than 50 members are involved so there is a
small team members are actively participate their job activities.
Medium Companies
Medium companies operate their operations in various locations and provide more employment
to the local community people and urban area people so that they can improve their living
standard. In these companies, less than 250 employees can perform £50 million.
Characteristics
 Good productivity - Medium companies gain more productivity and profitability as
compared to the micro and small companies because there is involvement of more
people.
 More revenue - Basically Medium companies generate more revenue and profitability
because they are operating and they are providing their good quality of products at low
cost and gain customers satisfaction.