Types of Companies

Types of Companies

Table of Contents
Introduction......................................................................................................................................3
Different Types of Companies.........................................................................................................3
Micro Business............................................................................................................................3
Small Business............................................................................................................................3
Medium Size Business................................................................................................................4
Large Size Business....................................................................................................................5
Different Companies from Sole Traders to Cooperatives and Limited Liability Partnerships........5
Sole Trader Business...................................................................................................................5
Partnership...................................................................................................................................6
Limited Liability Business..........................................................................................................6
Public Limited Liability Business...............................................................................................7
Cooperative.................................................................................................................................7
Different Business Structures and Internal Factors affecting Business ..........................................8
Identification of Different Organisational Structures and Explaining how does organisational
structure affect business productivity..........................................................................................8
How Different External Factors affect the performance of a business.......................................9
Conclusion.....................................................................................................................................10
REFERENCES..............................................................................................................................11

Introduction
Business is an activity in which products are purchased and sale in respect of exchange of
money (Esaulova, 2020). The aim of this report is to determine different types of companies and
Business structure. The report also consist different external factors which could affect the
performance of Business.
Different Types of Companies
A Company is an Entity that offers or buys goods or services in exchange of money.
Group of Individuals collectively work together to achieve goals and objectives of company. The
purpose of Firm is to gain more and more profit by increasing their brand value. There are
different types of companies they are as follows-
Micro Business
Micro Business is also known by name Micro Enterprise, it is a business in which the
employees are fewer than 10. It consists Freelancers, small organisation and Independent
Contractors.
Characteristics of Micro Business
Low Expenses-
The owner of Micro Business face low expenses as comparison to other type of business
as they have less umber of employees in respect to Medium and Large size of business. Micro
enterprise have less operating expenses as their operation activities are simple.
Interdependency-
Micro Business owners enjoys Freedom to Choose Career path even their employees also
have right to choose their future goals and live Independent Lifestyle (Moellers, Visini and
Haldimann, 2020).
Personal Satisfaction-
If a new business get successful it provides personal satisfaction as it is a life long dream
of owner. Personal satisfaction allows an individual to learn or develop skills that helps in
providing personal growth and pride.
Small Business
In Small Scale Business activities are performed on small scale level which includes
fewer machines, less capital and less labour. It is a Business which consist fewer than 50

employees in a unit. The few examples of small business are Photographer, Interior Designer,
tutor, a local shop, Caterer, etc.
Characteristics of Small Businesses
Management-
In Small Business all the management is controlled under owner. They look out and
handle all the activities related to functioning of business. The owner maintain and allocate
resources to achieve Business goals and objectives (Sanasi et. al., 2019).
Labour based-
In small business there is less use of equipments and machinery, they requires more
labour for functioning of business. The nature of Small Business is to involve more in physical
work as compare to Intellectual work. Due to lack of machinery workers manage their work
manually.
Limited Reach-
Small Scale Business have limited reach as compare to Large Business because they have
restricted area for continuing their operational activities. They establish their business in one
specific local area it could be a local shop or an Industry of small size.
Medium Size Business
Medium Size Business have less than 250 workers and their turnover must be under £50
million. They operate their business at medium level and aims to earn revenue by achieving their
goals.
Characteristics of Medium Size Business
Flexible-
Medium Size Business is more flexible due to their simple structure and size through
which they have a capacity to adapt changes. It also helps in Building a strong bond with
customers which helps them to know market variations (Swaffield et. al., 2019).
Quick Decision-
Medium Size Business can quickly made decision regarding the welfare of organisation.
They have a power to take decisions and also they involve employees in decision making process
so that they feel valuable in Business.
Effective communication-