Types of Companies

Types of Companies

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Section 1: Meaning, features and examples of micro, small, medium and large sized business.1
Section 2: Determine various organisation from sole traders to cooperatives and Limited
Liability Partnership.....................................................................................................................3
Section 3: Various organisational structure and external factors which affect business.............5
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
The aim of this is to form of business structure which is established by group of
individuals to manage and operate business venture. It is an enterprise which engaged
to generate profit from business activities (Ardolino and et.al., 2018). There are different
types of companies such as micro, small, medium and large organisation. In addition to
this, they may be public or private which helps them to increase profitability and growth
of an entity. This report includes various types of companies which is small, medium
and large sized business their meaning and features with examples, definition along
with characteristics of sole trader, public limited liability as well as partnership, various
organisational structure which affect productivity of business and examine PESTLE
analysis of external factors affect the performance of enterprise.
MAIN BODY
Section 1: Meaning, features and examples of micro, small, medium and large sized
business.
Micro business
Definition: Micro business is defined as the small business where it operates their
business with few people. These type of companies is managed and controlled as family
businesses by few sum of capital which is borrowed from other entity. The size and scope of
micro business is that it manage their work in small industry and the number of employees in this
company is less than 10 employees in business.
Characteristics:
 Minimum profit and revenue in business.
 They do not acquire commercial banking sector.
 This enterprise is working in the small sector such as production as well as production in
business.
 It has less assets and sales in an organisation.
 It creates employment opportunities in the marketplace which contribute and develop the
economy.
Example: Micro enterprises includes street vendors, small farmers, carpenters,
accounting to fulfil the needs and wants of own and family. For example, Issoria is start-
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up company in United Kingdom which is established their business in year 2016. This
operate work in management consulting industry as it is micro enterprise. This
organisation is founded by Ibi Thomson. They provide their services in change
management services which serve their clients.
Small business
Definition: Small business refers to the organisation which produce products
and services in small scale. This business plays and essential role in contributing the
economic development of enterprise. This is usually owned by partnership as well as
sole proprietorship. The size and scope in small business is small scale as the numer of
workers are less than 50 employees in an organisation.
Characteristics:
 They have limited capital to invest in business and it is operated and run by sole
proprietorship (Blair and Hitchens, 2018).
 All the activities are managed and handled by owner to accomplish the desired
goals.
 They use limited resources to reduce the wastage in business. They take their own risks in their organisation which helps them to increase
profitability and performance.
Example: Small business includes those enterprises such as tuition classes,
photography and printing press. For example, Davison Canners is a small business
which is operated by his family as they produce different fruits and offer jams as well as
operate bakery shop in order to increase profitability and turnover. This company is
established in year 1981.
Medium business
Definition: These are the enterprises which are engaged in production,
manufacturing and processing of products and services. The size and scope of this
business is medium and has numbers of employees which is 250 or more.
Characteristics:
 Organisation have sufficient amount of money to invest in business.
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