Types of Companies

Types of companies

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
SECTION – 1 DIFFERENT TYPES OF COMPANIES................................................................3
Micro business.............................................................................................................................3
Small business.............................................................................................................................3
Medium business.........................................................................................................................4
Large business.............................................................................................................................4
SECTION – 2 DIFFERENT TYPES OF COMPANIES................................................................4
Sole trader business.....................................................................................................................4
Partnership...................................................................................................................................5
Limited liability business.............................................................................................................5
Public limited liability business...................................................................................................6
Cooperatives................................................................................................................................6
SECTION – 3 DIFFERENT BUSINESS STRUCTURE AND EXTERNAL FACTORS.............6
Organisational structure influencing business productivity........................................................6
PESTEL analysis.........................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
Books and Journals......................................................................................................................9

INTRODUCTION
A company is a type of business organisation which is created by considering the law. It
is a group of people formed to undertake business activities while having a different legal
existence. A company has a perpetual succession and a common seal (Yusop, 2018). Companies
can be differentiated based on the size of the number of members, turnover rate and area it
covers. In addition to these companies can also be divided based on the liability parameters.
Although, there is no fixed type and classification of a company as it can depend on many things.
SECTION – 1 DIFFERENT TYPES OF COMPANIES
Micro business
Micro businesses are defined as small businesses which are working with less than nine
employees in their organisation. Micro companies are the new trend in the entrepreneurial world
as it is new thing and an enterprise which operates with less than ten people. Such businesses
include independent contractors, freelancers and other small organisations. Some of the
characteristics of the micro business are they are flexible to any changes within the market, they
can make adjustments (Çitilci, and Akbalık, 2020). They have the benefit of having quicker
turnaround in the times of decision making and forming business strategies as the nature of
business. Freelancer and consultant are examples of micro business owners who have few skills
but are specialised in that particular industry. Along with this they have low overhead expenses.
Some examples on the micro companies are Boss brewing company which is a woman led
crafted brewery business. Then there is Mantons cards offering the greetings cards and gifts.
Small business
Small scale business enterprises are defined as privately owned companies having the sole
proprietorship. Small companies have few employees and less annual revenue when compared to
a regular sized business. The functions of small scale businesses involve using less capital
investments and fewer machines to operate on. The numbers of employees are less than 250
members. The amount of annual turn over is less than 50 million. The characteristics of small
scale businesses is mainly the ownership, they have single owner known as sole proprietorship.
The management system is controlled by owner. They work in restricted area of their operations
which are usually local. They are more dependent on labours and industries than on technology.