Understanding Different Types of Companies and Business Structures

BMP3002: BUSINESS IN
PRACTICE

Table of Contents
INTRODUCTION.....................................................................................................................................3
SECTION 1................................................................................................................................................3
Understanding of varied types of companies and how they work........................................................3
SECTION 2................................................................................................................................................5
Explaining different organizations from sole traders to cooperatives and limited liability partnership
...............................................................................................................................................................5
SECTION 3................................................................................................................................................6
Justifying business structures and how external factors affect ventures...............................................6
CONCLUSION..........................................................................................................................................9
REFERENCES.........................................................................................................................................10

INTRODUCTION
Business practice refer to process of activity and strategy that a company
conduct in order to reach their desire outcomes in term of achieving set goals. It is
the way that management attempt to do in appropriate and cost effective
manner. The current assignment will define different types of companies and how
they actually work. It will justify firms from sole traders to cooperatives & limited
Liability partnerships. Furthermore, at lastly the report will explain types of
ventures structures and clarify how external factors affecting business.
SECTION 1
Understanding of varied types of companies and how they work
In the world of business, there are different types of organizations operate
and manage their businesses activities in excellent manner and these are;
Micro business-
This category of companies also named as micro enterprises that mostly
perform in specific sector, with less than 10 workers who are able to satisfy
customers at local level. Barber shops, small supermarkets, web based or online
ventures, etc. are included in list of micro business that may able to conduct their
practices in regard to grow a venture (Adi and Miradji, 2020).
The key feature of micro companies is that the owner of these firms may
have power to take decision independently. It may also have small teams of
people and limited resources that used to earn profits.
For example, funeral care is the best example of micro venture because it
operates at medium level to make arrangement in the context of people funeral.
Small companies-
A small venture is described as a privately or publicly owned corporation,
sole proprietorship and partnership that may has less than 14 workers and less
annual profits than a regular or big sized organizations (Dunne and McBrayer,
2019). Health care, arts, personal trainers, food & beverage stores, local auto

repairs, etc. are covers under the list of small ventures.
The main feature of these businesses is that overall management power
may held by only one person who may the owner of a company. They have limited
area of operation and use skills of local people by making them as workers who
understand needs and expectations of individual person.
For example, Layness Espresso is appropriate example of small company,
which as founded in 2011, to achieve the aim of owner. It works in effective
manner by producing tasty coffee.
Medium size firms-
A medium size company refer to those organizations that is smaller than
micro and small and work at low extent by using key abilities of individual
candidate that may accessible not more than 5.
In term of features, the best thing about medium size companies is that
they understand target market quite effectively and appropriately and also willing
to learn from own failures (Xiang and et.al., 2019). Another characteristic of these
types of firms is unity of employees, which made them capable to accomplish
daily work on time as they support each other.
For instance, Oat Cash and Carry as medium size firm, usually focus on
retaining potential customers by offering food items according to their needs and
expectations. It helps company to work appropriately and productively in retail
market.
Large size ventures-
This kind of businesses refer to those enterprises that employ more than
600 workers and work in term of increasing profitability, which is quite beneficial
and essential for their rapid growth and success within a sector.
The main characteristic of these companies is that it may have wide range
of resources that management use to achieve set goals, which made them
capable to gain competitive benefits in the future along with gaining current as
well. They have varied sources of funding, which a medium, small and micro firms
may do not had so.