Types of Companies and Business Structures - Desklib

BSc (Hons) Business Management with
Foundation
BMP3002
Business in Practice
Assessment 1
Types of Companies
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ID:
1

Contents
Introduction
Section 1: Different types of companies and how they work
Section 2: Different companies from sole traders to cooperatives and
Limited Liability Partnerships
Section 3: Different businesses structures and external factors affecting
business
Conclusion
Reference List
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Introduction
There are many companies available in the business environment which are
discussing in this report. It is necessary for every organisation and individuals to understand
the types and sizes of organisations (Hońko and et. al., 2020). This report will be cover
micro, small and medium size business. It also covers different types of companies which
include sole trader, partnerships, limited liability business, cooperative, etc. in addition to
this,it is vital for organisations to analyse different structures and external factors that
influence organisation' performances.
Section 1: Different types of companies and how they work
Micro business:
It is found in UK that they have 5.7 million micro- businesses in 2020. This number
shows the importance of micro business. This type of business is necessary for those people
that have not enough money to launch a big organisation (Nourani, Devadason and Chandran,
2018). So they start their micro business in order to fulfil their basic needs. The owners of
micro business are not focusing on additional factors such as infrastructure because it
increase cost. They are just focusing on increasing the sales so that they can earn money. The
example of this business is Marshfield Bakery. Some important characteristics are mentioned
below:
 In micro business, the employees should be less than 10 and their turnover needs to be
under £2 million.
 The capital under this business is generally small.
Small business:
This is necessary for individual that they should show their interest in the small
business. The reason is it plays a vital role in national and international economy. Small
organisations give contributions to the growth rate of economy. Currently, it is find out that
government is trying to increase the number of small organisations. CafePod Coffee Co. is
the example of small business. Characteristics of small business are mentioned below:
 In small business, the number of employees are less than 50 and turnover should be
under £10 million.
 It provides employment opportunity to people so that they can earn revenues and
income. This will lead to improve in standard of life.
Medium size business:
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