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 3
Section 1: Different types of companies and how they work
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Section 2: Different companies from sole traders to cooperatives and
Limited Liability Partnerships 4
Section 3: Different businesses structures and internal factors affecting
business 6
Conclusion 8
Reference List 9
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Introduction
The aim of this report to examine the various types of business companies along with
their different organisational and legal structure. Further, in continuation to this, the report
also aims at describing the company's organisational structure along with an application of
PESTLE framework. Every company within the existence has its own separate entity
according to the law which operates with its name and identity (Cao and Zhang, 2021). The
different forms of companies like sole proprietors, partnerships, non for profit or social
organisation, etc. performs their functions and are existing within the market.
Section 1: Different types of companies and how they work
Micro business:
The micro level business organisation refers to those businesses which operates with a
very little capital and labour such as by own or with less than 10 employees. Such form of
companies are generally seen in towns or villages in a form of shops or own local level
business (Jean Mmurray, 2020). Micro businesses does not required to have legal formalities
hence can be opened or shut at anytime without any permission or grant (Cerda-Suarez and
Valero-Matas, 2021).
The example of micro businesses in UK are Mantons Cards, Proviz, WriteUpp, etc.
Small business:
These type of businesses are those which operates with more than 10 employees and
are large in size as compared to micro business. The turnover of these businesses are less then
10 million annually and are independent bodies (UCL, 2020). The owner is solely
responsible for all the profits & losses of the company (Devinney and Dowling, 2020).
The example of small businesses in UK are Davison Canners, Fourex,
CommuterClub, etc.
Medium size business:
Medium Size businesses are those which operates at state or at national level. The
number of employees who works under medium sized organisations ranges to less than 100
employees with an yearly turnover up-to 250 million. These businesses could be conducted
either privately by a single person or can be in partnership (Haines Watts, 2017). Such form
of businesses are categorized as the contributors of the national development and provides
employment to the local people hence also provides an opportunity of employment
(Friesendorf and Uedelhoven, 2021).
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