Types of Companies and Business Structures: A Comprehensive Guide

Business Management with Foundation
BMP3002
Business in Practice
Assessment 1
Types of Companies
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1

Contents
Introduction 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 4
Section 3: Different businesses structures and internal factors
affecting business 6
Conclusion 9
Reference List 10
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Introduction
The aim of this report to examine different types of companies(micro, small,
medium, large size business) and their work structure. The report also describe
companies from sole trader to cooperatives and limited liability partnership. All types
of companies have different characteristics and features which represents own
identity of company (Alomar, 2019). It also highlight business structure and external
factors affecting business. The external analysis can be done from the model of
PESTLE analysis. This will help in determining factor that affect the performance of
business. The company is a form of legal entity which representing a group of people
to accomplish specific objective.
Section 1: Different types of companies and how they work
Micro business:
The micro business is also called as micro entity or enterprise which consider
as exclusive trend in entrepreneurship world. The micro business is the foundation of
nation creation that support economy of the country. The micro business is a kind of
small business that operates at very smaller level. The micro business have less
employee than 10, including owner (Betancourt, 2019). The annual sales is less
than $ 250000 that required less than $50000 to starting business activity. The micro
business require very less capital in order to operate business activity. The micro
business can be operates by the single owner without employee, for example- event
planner, consultant, housekeepers and so on.
Small business:
The smaller business is refers as private owned entity or corporation which
combines of less employees as well as annual salary and operate regular sized
business. The government support small business to qualify for preferential policy of
tax. The employees of small business includes from 100- 500 employees with
revenue less than $ 25 million. Example- Bakery shops, Schools, virtual assistant
services and so on are consider as small business. The small business are more
independent and operates the company in limited size.
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