Different Business Structures and External Factors: A Study

Business in Practice

Table of Contents
INTRODUCTION...........................................................................................................................3
SECTION 1......................................................................................................................................3
Explain the definition, characteristics and example of micro business, small business, medium
size businesses and large size business..................................................................................3
Section 2...........................................................................................................................................4
Explain the definition, characteristics and example of Sole Trader Business, Partnership,
Limited Liability Business, Public limited Liability Business and Cooperative....................4
SECTION 3......................................................................................................................................7
What are the different business structures and how external factors affect businesses?........7
PESTEL Analysis of Tesco....................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business is the organisation which is engaged in commercial, industrial and industrial
activities. Thus, it helps the business owners to generate the money. There are may practices
which a firm has to perform to attain their objectives of the organisation. Their primary objective
is to earn profits; secondary the satisfaction of their customers and many more. There are the
certain activities which the organisation has to perform to do so in most effective way. There are
certain rules and regulation for company's practices to ensure that their workforce is working
effectively with the applicable laws.
SECTION 1
Explain the definition, characteristics and example of micro business, small business, medium
size businesses and large size business.
Micro Business: It is the informal practice of an organisation. In this firm, has a
workforce of not more than 10 employees. This kind of business is very small business, which
helps the individuals to attain their needs and wants(Foss and Saebi 2018).
Characteristics:
 The enterprise has a turnover not more than £632,000.
 They cannot employee more than 10 persons.
 The annual sale must be Less than £1,400,000 [Types of Business according to size].
Examples: Spaza shops and Shebeens shops are the micro business.
Small Business: It can be defined as they do not have the turnover of more than £6.5
million. They have the headcount of less than 50 persons but more than 10 people. They use the
services of one of the agencies.
Characteristics:
 The annual Turnover of the firm more than £2 million but less than £10 million.
 The annual sale of the company shall be between £1,400,000 and £7,000,000 [Types of
Business according to size].
 They are limited boundaries to access their business.
Examples: Hair and beauty, Food and Drink, Freelancing, child care, Coaching and many more.