Understanding Different Types of Companies and Their Legal Entity

BUSINESS IN
PRACTICE

Table of Contents
Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
SECTION 1......................................................................................................................................1
Understanding of different types of companies and how they work..........................................1
SECTION 2......................................................................................................................................3
Explain different companies from sole traders to cooperatives and limited liability
partnerships.................................................................................................................................3
Sole proprietorship......................................................................................................................3
Partnership limited......................................................................................................................3
Public limited liability.................................................................................................................4
Corporative business...................................................................................................................4
SECTION 3.................................................................................................................................4
Different business structure and how external factors affects businesses ..................................4
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................7

INTRODUCTION
Business in practice is the aspect which is being considered by the individual so that they
can engage in the some commercial business with the sole motive of generating higher profits. It
is concern with the different tactics and plan so that they can effectively run their business
venture in well-defined manner(Schrauder and et. al.,2018). The main scope of this report is to
explain the different type of companies that are available in the business environment and also
analyse the different business on the basis of their legal entity by which they effectively choose
the appropriate organisation structure by which they can ensure the effective working within the
organisation. Lastly it will evaluate the external factors which is impacting the overall
functionality of the business.
MAIN BODY
SECTION 1
Understanding of different types of companies and how they work
Micro business
Definition- The type of business which is working with the limited resources and having
employees between 0-9 employees with the limited capital and funds. The main motive of such
venture is to have the easy survival of their family and friends and can operate their business in
the local market.
Characteristics- The main attribute of such type of micro venture is giving job to jut 9
employees so that they ensure the easy operations by which they can have the easy survival for
the family and friends. In micro business, they generally generate the revenue of around
£632000. They also emphasis on understanding the needs of their consumer so that they can
ensure the easy operations.
Example- Miel Bakery is the best example for the micro business, It is famous bakery
shop in UK which is offering wide range of cake, pastries and breads.
Small business
Definition- these are the type of venture which is larger than micro business as they are
generally work with the 0-49 employees and also give other job related benefits and they
contribute in the sustainability and success of the business.
1