Different Types of Companies and Business Structures

BUSINESS IN PRACTICE
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Table of Contents
INTRODUCTION............................................................................................3
SECTION 1...................................................................................................3
Different types of companies and how they work................................3
SECTION 2...................................................................................................5
Different companies from sole traders to cooperatives and Limited
Liability Partnerships............................................................................5
SECTION 3...................................................................................................7
Different business structures and external factors affecting business 7
CONCLUSION.............................................................................................10
REFERENCES.............................................................................................12
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INTRODUCTION
A business practices is considered as effective tool or element that
provide benefits to a company when it conducts into effective and
systematic manner. It contributes to run a venture and sustain
organizations within specific industry. The aim of this current study is to
define, types and characteristics with examples of varied forms of
companies. It will justify meaning, features and examples of sole trader,
partnership limited liability, public limited liability and cooperative. Lastly,
this report will explain types of organizational structures and how these
affects business productivity. It will also justify how external factors affect
performance of a venture.
SECTION 1
Different types of companies and how they work
Micro business:
It is one of those organizations that operate business with limited
resources and conduct venture practices for selling few products and
services such as grocery items, new paper distribution in specific areas,
etc.
The main feature of micro business is that it may work with not
more than 5 to 8 employees, who are efficient to perform specific task and
provide expected outcome (Brown, Bocken and Balkenende, 2020).
Another characteristic of this form of firm is that it consider as fairly
labour-intensive.
The most suitable examples of micro venture is street vendors, Oak
Cash and Carry, accounting organizations, plumber, etc.
Small business:
Small organizations are defined as a privately managed ventures,
sole proprietorship or partnership firms that may have fewer workers, to
work and achieve aim (Small Business: Characteristics, Strengths,
Reasons for Failure in Small Business, 2021). These types of companies by
working and performing at small level may contribute to enhance
customers satisfaction.
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The key characteristic of these firms is in-dependency which owner
may obtain and take pleasure of this in term of taking decision without
any interference. Furthermore, another feature of small ventures is that it
may enable individual person to control work and performance of few
employees such as 12 to 20, who effort to achieve set goals and
objectives of business. Bakery, small supermarkets, automotive repair
shop, lodging and travel outlets, etc. are included in category of small
businesses.
Medium size business:
Those companies that may have only 2 to 5 employees are known
as medium size firms, which daily effort to reach at expect outcomes and
attempt to earn profits more than investment regarding products selling.
It can be said that medium size organizations may usually have
limited resources as characteristic to increase profit and gain benefits of
few investments. Informal management style is another quality of these
firms which means that administration is mostly acted in informal manner.
Smith Brothers that operate a medium firm in the UK such as
contracting Ltd, may consider as the suitable example.
Large size business:
As compare to medium, small and micro, large size companies may
conduct their business practices within many nations or market segments.
With more than 250 employees, a large size company effort to be
productive and competitive within particular market, which in return
contribute to increase their sales, success and productivity even better
than rivals that also operates under same sector.
In term of characteristic, large scale firms may have more
candidates in more complex management hierarchical format more than
in medium scale ventures. Furthermore, they may also have great number
of ventures operations such as marketing, production, financing, IT,
customer service, etc.
TESCO, ASDA, Sainsbury. HSBC Holdings, etc. covers under the list
of large size enterprises.
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