Types of Companies and Business Structures: A Study

In Practice

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
SECTION 1.....................................................................................................................................1
Distinct types of companies and how they work.........................................................................1
SECTION 2.....................................................................................................................................3
Different companies.....................................................................................................................3
SECTION 3.....................................................................................................................................5
Different business structures as well as external factors impacting business..............................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Organisation is delineated to collection of human resources that are involved in working to
pursue defined goals or objectives. It is seen as a social system that entails all formal
relationships among people (Karpenko and Et. Al., 2019). It includes division of work between
employees along with alignment of tasks for ultimate corporate goals. The purpose of report is to
examine variants of companies and their working in dynamic business environment.
The report highlights distinct kinds of companies and ways to work. It also assesses
different business structures and factors that affect business performance.
SECTION 1
Distinct types of companies and how they work
Micro Business
Definition: A business which carry out activities with less than 5 employees and earns
for day to day living. They attain target with limited finances as well as investment.
Characteristics: Key characteristics that defines micro business are below:
 Annual turnover of 632,000 £ or less.
 Balance sheet showing 316,000 £ or less.
 Micro businesses serve individual communities, for example, convenience shop within
rural township (Zellweger, 2017).
Example: Mantons Cards is an example of micro business that offers best selection of gifts
addition to greetings cards. It works with local suppliers as well as artists for providing locally
themed merchandise.
Small Business
Definition: Business that have fewer employees and capital to carry out operations are
defined to small businesses. They are heart of a country as they aid in reducing unemployment
level and support an economy at local together with national scale.
Characteristics: Features of small business are below:
 Annual turnover of £ 6.5 million or less.
 Small business is established, managed and controlled by an individual.
 They have limited area of operation.
 Small business uses local addition to immediately available resources.
1