Types of Companies and Organizational Structures: A Study on Easy Jet

BSc (Hons) Business Management with
Foundation
BMP3002
Business in Practice
Assessment 1
Types of Companies
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1

Contents
Introduction 3
Section 1: Different types of companies and how they work
3
Section 2: Different companies from sole traders to cooperatives and
Limited Liability Partnerships 5
Section 3: Different businesses structures and internal factors affecting
business 7
Conclusion 9
Reference List 10
2

Introduction
Business is an activity of manufacturing or buying and selling of goods and services
with a primary aim of earning profits. It is an entity involved in industrial, professional or
commercial activity. There are also some organisations which do not work with the motive of
gaining revenues but with a target of serving society. Such organisations are called as non-
profit- organisations (Ponte, 2019). This report is based on Easy jet, a low cost multinational
airline, headquartered in London. It is operating over 1000 routes in more than 30 countries.
This report differentiates the different types of industries on the basis their size and on the
ground of their formation. There is also a description on the various structures of an
organisation and its impact on the productivity It has also analysed the affect of external
environment on the business performance.
Section 1: Different types of companies and how they work
Micro business:
Micro business are small sized enterprises which normally carry their tasks with the
savings held by them or by taking small loans from the the financial institutions. These firms
perform at very small scale with a limited number of employees employed by them. They
help in boosting the economy and improving the quality of the people in the country.
Characteristics of Micro business:
 Owner- Normally, micro business are owned and controlled by a single owner.
 Balance sheet value and the turnover- The total of the balance sheet and the annual
turnover of such firms should be less than € 2 million.
 Number of employees: Micro level businesses cannot hire more than 9 employees in
the organisation in which the owner is also included.
For example, Boss Brewing Company.
Small business:
Small businesses are normally the retailers, the professionals and the manufacturers
producing at lower level. They are usually the sole proprietors or the partners operating an
organisation with limited capital with a restricted number i.e. up to 50 employees (Kwilinski
and et. al., 2019).
Characteristics of business:
3