Types of Companies and Their Characteristics

Types of
Companies

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Different types of companies and how they work. ....................................................................3
TASK 2............................................................................................................................................5
Different companies from sole traders to cooperatives and limited liability partnerships .........5
TASK 3 ...........................................................................................................................................7
Various business structures and external factors affecting business...........................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
There are various types of companies in a country. Every company has different
characteristics and there advantages and disadvantages. Various forms of business are in the field
of legal structure are figured as a form of business administration (Allem, 2020). It is an
organisation of individuals and group of individuals that could various activities of a business in
perceptual way of common framework. In this report there are different types of companies are
taken and there characteristics are discussed below. Their operation and functions are also
mentioned their. Also it covers characteristics of sole traders and limited liability partnerships
and cooperative company. It covers different business structures and external factor which can
affect the businesses. This can be done by using PESTLE analysis.
TASK 1
Different types of companies and how they work.
There are certain types of companies which are involves in the country and they perform
different functions and operations. Companies are classified into various types based on their
mode of incorporation, number of members and liability of members etc. these companies are
discussed below with their characteristics:
Micro business
Micro business is a appreciable mark in our economy. It is a foundation of creation of
nation and it is the important part of economy and strength of our communities. It is usually a
term in which there are nine employees or less then people are working in a business
administration (Condé and Cisel, 2019). For example Boss brewing company, it is a women led
craft brewery. This was founded by Sarah John who has made this for changing the perception
around women in brewing.
Characteristics of micro business
 Changing flexible: A micro business characteristic is that it is flexible in nature as it can
be change anytime and can adjust according to the taste of customer. They focus on
various section of business so that they could focus on every employee.
 Low overhead expenses In micro business, the cost and expenses of there is also very
low. As they could not perform that much activities as compare to large industry so this
could help them in saving their time.