Different Types of Companies and Their Characteristics

BSC (Hons) BUSINESS MANAGEMENT WITH
FOUNDATION
SEMESTER 1, EXAMINATION 2021/22
BUSINESS IN PRACTICE
MODULE NO: BMP3002
Exam Paper Release Date & Time: Saturday 13 August 2022 at 10:00am
Submission Cut-off Date & Time: Monday 15 August 2022 at 10:00am
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ANSWER BOOKLET
All the pages of the answer booklet should be submitted including blank ones.
Please type your answers in the spaces provided.
Insert additional pages where required.
Student Name
ID Number
[Start writing you answer from this page. There are THREE questions. You are required to
answer any TWO questions. For each sub-questions, use heading such as “Answer to the
Question no. 1(a)” or “Answer to the Question no. 3(b)” etc]
1. You are to show an understanding of the different types of companies and
how they work. You are required to answer ALL five questions below:
(Total 50 Marks)
I. Discuss the main criteria used for classifying different kind of businesses?

Corporation of the business represents in which the method of the business are structured in
order to meet as well as accomplish the goals and objectives of the business (De-Arteaga,
Feuerriegel, and Saar-Tsechansky, 2022). In addition to this these are formed in order to
concentrate on enhancing the revenue of the organization which will also lead to their long term
sustainability and success in the market area.
II. Explain microbusiness with appropriate examples.
Micro business:
This type of commercial business involves around less than 10 employees in its operation
and this is basically a crucial element of the United Kingdom’s economy as well. This basically
promotes like a train map of developing nation as well as of the economic machine and this type of
the entity of the business provides the opportunity of jobs and increase the buying power of the
consumer and minimise the cost of manufacturing and other expenses. The illustrations of such sort
of association are Beauty Boulevard, Boss Brewing and various more.
Characteristics -
 In this type of the organization average number of the employees that are functioning are
below or equal to 10.
 In this only order or the upper level individual is the decision maker for the
business.
III. Explain small business with appropriate examples.
Small business:
Small businesses means to the business entity that are maintained as well as owned by an
individual with having more than 40 to 50 workers that are functioning in the organization and it
also is the low annual revenue business entity. In addition to this such type of the commercial
business did not have adequate capital or funds in order to set up machinery and plant for its
production (Ge, 2022). For instance owner of flower shop, milk booth, plumber and various other
small businesses which function in the market area in an effective as well as efficient way.
Characteristics -
 These businesses are very open as well as flexible for any type of alteration and dynamic
change in the operation.
 In this kind of the commercial business the decision maker is only the owner
and the another name of this type of business entity is Sole proprietorship.
IV. Explain medium size business with appropriate examples.
Medium size business:
The business entity in which the workers that are functioning in the company around 250 is
known to be the medium size business and these businesses are obliged for monitoring all the
practices of the organization. Few example of this type of the entity of the business are land Bay,
spirit health group and various more.
Characteristics -
 These organization are more of labour intensive And it does not required heavy as well as
costly plant and machinery in its business operations which can be done in an effective as
well as effectual manner in the market area.
 This type of the commercial business our function in the domestic area and
function there for a long period of time that provide assistance to the business
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