Types of Companies

This document provides an overview of different types of companies, including small size business, medium size business, micro business, and large scale business. It discusses the characteristics and examples of each type. The document also explores various business structures and their impact on productivity. Additionally, it includes a PESTLE analysis of Tesco Company, focusing on political, economic, social, technological, legal, and environmental factors.

Types of Companies

Table of Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
TASK 1.......................................................................................................................................................3
Different types of companies and how they work....................................................................................3
TASK 2.......................................................................................................................................................5
Sole Trader Business...............................................................................................................................5
Partnership...............................................................................................................................................6
Limited Liability Business.......................................................................................................................6
TASK 3.......................................................................................................................................................6
Business Structure.................................................................................................................................6
REFERENCES............................................................................................................................................9
Books and Journals:.................................................................................................................................9

INTRODUCTION
Company is a body corporate and legal entity which represents an association of people
whether it is legal, natural or combination of both but they have specific goal for the company.
This report is prepare on the explanation about types of the corporate bodies or companies which
shall be considered as a small, medium and large scale business (Ahmed, R. and Et.al., 2020).
This report is aims to discuss the external factors of the business which creates impact on the
growth and development in the corporate bodies. In this report the Tesco Company is mentioned
with PESTLE analysis. Tesco Company is multinational retail in nature which specialized in
trading of clothes, groceries, shoes, furniture and many more products.
MAIN BODY
TASK 1
Different types of companies and how they work.
Small Size Business:
Small size private labelled corporations or partnership that have minimum employees and
less yearly profits in comparison with regular size business or companies. Small business in
many countries such as small grocery stores, guest house, bakeries, convince in stores and many
more. Small business can be understand in a way that functions on a small scale level and have
an association of minimum labors which have productions and services on small scale level.
Characteristics:-
Small scale companies have many types of characteristics which are mentioned below.
Generally small scale business has low revenue and profitability in comparison with
larger size organizations. Here, low profits does not mean to translate or represent into less
productivity for the business instead it supports to retain prices which is more than leveraged
company. Small scale organizations having small team of members in its functioning. Such type
of organizations can be operate by single or a few members of team (Cunha, T. P. and Et.al.,
2020). With a concentration there are many small business owners that manages their company
with huge responsibilities. The concentration on the problems and challenges and the aptitude to
block out of the interruption of objectives and goals assist them to become a prosperous business
owner and trading with the market. These kind of business operates there business functions
from a single outlet or a single office. Partnership title and taxes, usually this corporate prefers to
operate or run as sole proprietorship or can be said limited liability company. Small scale
companies outfits highest degree of management control for their association by managing the
cost reduction of registration of business.
There are various best examples of small sized business with the more focus and such
examples are mentioned below:-
Catering business, broad world event house, internet business, car washing gardening,
business fast delivery restaurant, sandwich bar, coffee shop and many more.

Medium Size Business:
In Companies Act 2006, medium size companies are explained as a company which have
250 employees. And this kind of business are those business whose private numbers go down
below some specific limit.
There are some appearances of a small and medium size business and these features are
stated below:
Medium scale companies are those associations which are owned independently as they
are not reliant on anybody (EUROPEEN, D. C., 2019). This kind of companies having less
production with products less, dealings less, sales less. Medium scale business having limited
customer base and limited source of capital and with an addition to this it has less external inputs
like professional or friends network.
There are numerous example of medium size companies and which are mentioned below:-
Talcum powder production, window manufacturing, aluminum door and LED light
manufacturing, leather product, making of paper bags, manufacturing of furniture and many
more.
Micro Business:
Micro business company is usually understand as a small size enterprise in which the
worker quantity is nine or less than nine and having a turnover or annual report which is less than
a specific amount. In another words, it can be understand as a company having a operation on a
very small scale level. This type of business faces many type of threats and challenges in
comparison with small or medium sized companies. They have less financial stability and
resources in the similar service sector and for such type of business it becomes a challenging and
difficult to get loan from the bank because of their size of association (Geok, A. L. S., 2021).
This type of companies cannot complete their work in an effective manner and at a particular
time duration because they having a limited resources for their operations.
Characteristics:-
Micro business having a capability to separate their jobs and family life. And, in this type
of company workers are self-reliant and self-motivated. Also they much concentrated on
accomplishment of their objectives and aims for the companies. The vision of these micro
companies is always ready to seek advice from the professionals or experts (Sadiku-Dushi, N.,
Dana, L. P. and Ramadani, V., 2019). These companies are working in the direction of single
individuals and they do not have to depend on others and with an addition to that they have a
clear control of management in their organization respectively.
There are some examples of micro scale business which are mentioned below:

Food business, arts and crafts, graphic and design, retail merchandising and trading stores,
canteen, agriculture business, money and many more.
Large Scale Business:
Large scale business can be refer to those companies or associations which have a large
amount of infrastructure and having a huge quantity of raw materials. Large scale industries
having large capital needs and high main power requirements. Such type of companies having
fixed assets and balance sheet of more than 10 crore rupees (Ramadhan, A. R., 2021, February).
This type of companies advert to the workshops which mixes at least three characteristics and
these are use of machinery, application of controlling the acts or measures, or employment of
wage labor.
Large scale companies having various kinds of characteristics and which are mentioned below:
Large scale companies usually having the advance kind of technologies that will support
in economical bulk productions. It highly involved capital-intensive resources and industries.
Large scale companies usually deals in bulk buying and selling; along with bulk purchase of raw
materials.
This kind of companies can be understand with a few examples which are mentioned below:-
Zara, Sainsbury, H&M, McDonald's, Tesco, Nike and many more.
TASK 2
Sole Trader Business
Sole trader business having only one person who has a right to take important decisions
and in return he will get whole amount of profits and responsible for bearing the losses. In this
type of business, the sole trader only the responsible to pay income taxes. This kind of business
is also known as sole proprietorship business.
Sole Trader Business having the following characteristics:-
Sole trader means having only one owner for this type of business. And this type of
corporate only the owner have a right to take important decisions according to the happenings.
Sole trader will be only responsible and manage according to himself (Shu, Z., 2019, December).
There is a lack of presence of government regulations and sole trader will answerable and make
decisions bestowing to the situations.
Example of Sole Trader Business:
A great example can be given is a barber shop which has a form of sole trade business in
which Babur is the only boss and responsible for handling things over there and tackle his
business’s profits and loss and run his business according to his mindset.

Partnership
Partnership is that kind of business in which business having a partnership of two or more
persons who joins their hands to start a corporate with a definite terms and conditions into a
contract to share a pre-determined profit and loss with each other. Partners are liable to share
profit and losses according to their partnership and share of percentage which has mentioned in
their contract.
Characteristics of partnership:-
Partners shares profit and losses and having a limited liability. Partnership has no legal
entity and partners are liable in their partnership is unlimited because their association is
connected with their owners. So that they are responsible for bear any losses during the course of
business (Suttipun, M., 2021). The partners involved in the partnership have to pay their share
amount only.
Examples of Partnership:
GoPro and Red Bull, Apple and MasterCard, Uber and Spotify and many more are
examples of partnership.
Limited Liability Business
Limited liability business is a kind of business where members are liable with the limited
extent to their share in the corporate business. It is deliberated in varieties of businesses because
it is a diverse kind of partnership which encompasses formation of company but in this kind of
business, a business is a distinct entity.
Characteristics of Limited liability business:
Limited liability business is having a limited liability and the corporate has its own legal
entity. In the end of the name of association LLP is mentioned (Thornton, H. C., Campbell, A. J.
and Owusu, R. A., 2019). It is deliberated as the most noticeable method to start an organization.
In the present scenario in which a person willing to start a business with limited liability
partnership.
Examples of Limited liability business:
In this kind of business association, such name of XYZ LLP, where LLP stands for
limited liability business.
TASK 3
Business Structure
There are mainly four kinds of business structure which is followed by the any
organization and these are: Functional structure, divisional structure, Matrix structure, and flat
structure. The company TESCO follows the organization structure. In this structure,
responsibilities and positions are separated into several parts in order to ensure that the work will
be done effectively and efficiently.

Affects of Organizational Structure which affect the business productivity:
The organizational structure has give their impacts on performance of the workers, But
Its improve the productivity of the company because in this structure, the workers of the
company work together, communicate together, share their resources. So this will build the
coordination and team work in the company.
PESTLE ANALYSIS
The PESTLE study is used to uncover external variables that have an influence on a
company's growth and development. The results of TESCO's PESTLE analysis are listed below.:
Political factors - Tesco is a global retailing corporation, hence it is heavily impacted by
global political elements from several nations. These variables include acts of legislation,
national stability, and tax rates in the nation in which the firm operates.
Economic factor - Economic considerations are all the aspects that influence the firm's
economics and the economy of the country in which the firm operates. Tesco, as a retailer, has a
lot of issues with the economy's unfair distribution. Because the corporation is more influenced
by demand, supply, and other economic issues, it must be aware of any changes in taxes
regulations or other economic developments. Despite its presence in several nations, the
corporation is is reliant on the UK economy. (Lee, Wye, and Lim, 2018).
Social factor - The demand for the Pack product has increased in the UK as a result of
changing social patterns, which has an impact on Tesco's UK company. However, as people's
health concerns grow, demand for ready-to-eat foods declines. To keep up with the societal
developments in the UK, the firm began offering organic items to its clients..
Technological factors - Tesco's company benefits from technological advancements
since it streamlines operations. Tesco's company has grown as a result of the introduction of
internet commerce through technology, since they can now sell their items in many parts of the
world without having to open a new store. Another advantage of technical advancements is that
the corporation now provides self-service to its consumers, lowering labor costs.
Legal Factors: Government regulations and rules have an influence on TESCO as well.
In the framework of human security and safety problems, there are many regulations such as
minimum wages. Because TESCO is an international corporation, each country has its own set of
laws and regulations, which presents a number of obstacles for the firm.
Environmental factors - Tesco has pledged to decrease its carbon emissions by 50% by
2020, in response to increased pressure on corporations to solve numerous environmental
concerns that they have generated.
CONCLUSION
According to the above-mentioned data, there are numerous sorts of businesses that an
individual may choose when starting a business. Every company has its own own qualities and
traits. In addition, each firm needs a unique structure in order to run efficiently. In order to

identify the dangers and issues related to the business's external influences, a PESTLE analysis
was performed in this study. It will assist the organization in identifying the external factors'
influence and issues..

REFERENCES
Books and Journals:
Ahmed, R. and Et.al., 2020. The performance of bidding companies in merger and acquisition
deals: An empirical study of domestic acquisitions in Hong Kong and Mainland China. The
Quarterly Review of Economics and Finance.
Cunha, T. P. and Et.al., 2020. Proposal guidelines to implement the concepts of industry 4.0 into
information technology companies. The TQM Journal.
EUROPEEN, D. C., 2019. THE LEGAL CONNECTION OF TRADING COMPANIES IN
EUROPEAN COMPARATIVE LAW.
Geok, A. L. S., 2021. A New Career Opportunity As An Insolvency Practitioner In Malaysia
Under The Companies Act 2016. Turkish Journal of Computer and Mathematics Education
(TURCOMAT), 12(8), pp.230-234.
Ramadhan, A. R., 2021, February. The Analysis of Determinants of Qualified Audit Opinion on
Manufacturing Companies Listed in Indonesia Stock Exchange Period 2016-2018.
In International Conference on Strategic Issues of Economics, Business and, Education
(ICoSIEBE 2020) (pp. 11-16). Atlantis Press.
Sadiku-Dushi, N., Dana, L. P. and Ramadani, V., 2019. Entrepreneurial marketing dimensions
and SMEs performance. Journal of Business Research, 100, pp.86-99.
Shu, Z., 2019, December. Research on Comprehensive Ability of Tourism Listed Companies in
China-Based on the 2018 Financial Index. In Proceedings of the 2019 Annual Meeting on
Management Engineering (pp. 188-191).
Suttipun, M., 2021. The influence of board composition on environmental, social and
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Governance, pp.1-12.
Thornton, H. C., Campbell, A. J. and Owusu, R. A., 2019. External barriers facing
internationalising sharing economy companies: a study of European and American
sharecoms. Journal for Global Business Advancement, 12(1), pp.70-94.
Wang, G. and Et.al., 2020. Establishment of a Financial Crisis Early Warning System for
Domestic Listed Companies Based on Three Decision Tree Models. Mathematical Problems in
Engineering, 2020.
Wong, C. C. and Et.al., 2020. Conceptualising risk culture on enterprise risk management (ERM)
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Journal (BEJ), 17(1), pp.59-70.