Types of Companies and Organizational Structures: Business in Practice

BSc (Hons) Business Management with
Foundation
BMP3002
Business in Practice
Assessment 1
Types of Companies
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Contents
Introduction 2
Section 1: Different types of companies and how they work
P
Section 2: Different companies from sole traders to cooperatives
and Limited Liability Partnerships p
Section 3: Different businesses structures and internal factors
affecting business p
Conclusion p
Reference List p
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Introduction
The aim of this report to examine various types of companies and how it is operating
in the marketplace. It also analyzes different types on basis of ownership like a sole
trader, partnerships, and limited liabilities. Moreover, it explains the organizational
structure and also analyzes factors that create an impact on the performance of the
business.
Section 1: Different types of companies and how they work
Micro business:
It is a business which consists of a small number of employees as it ranges from 1 to
5. This business is operating a small level and also requires a small amount of
capital not more than $50000 amount for purpose of operating of the company
(Alnidawi, Yousif and Hmdan, 2021).
Characteristics:
 Flexibility is one of the important components which is always present in the
Micro size business which makes it easier for them to implement changes. It
also makes it easier for them to make decisions.
 The business owner has proper knowledge of the field as whether they are
the contactor or freelancers, they have specific in their field and also, they are
able to maximize the marketing share.
 It does not require large investment and cost which allow a person to easily
establish the business.
Example: Freelancers, contracts are the example related to the Micro business.
Some other examples in this category includes Freelance designer in graphics,
home based businesses, Solo consultant, Amazon Supplier, Etsy Owners (Al-tamy,
2021).
Small business:
Small business are the business which is involved in production of goods and
service at the small scale. It is one of industry which is contributing for economic
development in a different manner. Investment required in this small business is for
purpose of purchasing of plants, machinery, tools and equipment and also for
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