Types of Companies and Business Structures - Desklib

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

Contents
Introduction 2
Section 1: Different types of companies and how they work
2
Section 2: Different companies from sole traders to cooperatives and
Limited Liability Partnerships 3
Section 3: Different businesses structures and internal factors affecting
business 4
Conclusion 6
Reference List 7
2

Introduction
The main objective of this report is to analyse the different forms of companies along
with their organizational environment in an efficient manner. In the present report, all the
companies are being classified with the assistance of their size as well as their legal entities
that includes certain examples (Amato, 2021). The report also mentions the different structure
of business, functional as well as departmental along with an analysis of PESTLE framework
which is being utilized to identify the various external forces that can directly influence the
operations of company as well as its functions. The company which is being taken for this
project is Morrison.
Section 1: Different types of companies and how they work
Micro business:
Micro-business is a type of small firm which operates with fewer than ten people
within an organization. In this, scale and size are the main distinction between small business
and micro level enterprises. The yearly turnover of the organization is higher than €2 million.
It is been evaluated that micro businesses majorly deals retail, health care, social support and
construction sector. Such form of businesses are being regulated in identical manner as other
business firms & their tax payment depends upon the type of enterprise which is being
chosen by partnership, sole trader, LLC or even corporation (Bodrova and et. al., 2021).
Small business:
This is termed as the privately functioned & regulated partnership, association or a
corporation that comprises of a restricted number of staff who are going to perform the task
in order to gain high revenues for the business. These types of industries perform an
important role for the development of the economic & level of growth of the nation. The
business holder invests the needed funds or money in functioning of business such as
purchasing land, machinery, plant or other expenses. A small business is an enterprise whose
yearly turnover ranges more than €2 million but is less than medium size turnover. This is
categorized as an independent organization which is being owned & governed by an
individual that gains & faces profit as well as losses for the company (Cunningham, 2020).
Medium size business:
Compared to small businesses, businesses with larger scale but fewer businesses are
considered medium-sized businesses. These companies have fewer than 250 employees in
their businesses and have a turnover of up to £ 50 million in a fiscal year (Devkot and
Howington, 2021).
3