Different Types of Companies and Their Legal Structures

Business in Practice

Table of Contents
INTRODUCTION...............................................................................................................4
MAIN BODY.......................................................................................................................4
SECTION: 1 Different types of companies and how they are working.............................4
Micro business...................................................................................................................4
Section 2 : Different companies from sole traders to cooperatives and Limited Liability
Partnerships.......................................................................................................................6
Section 3: Different business structures and external factors affecting business.............7
CONCLUSION.................................................................................................................10
REFERENCES................................................................................................................11

INTRODUCTION
On the basis of current scenario, it is mandatory for the entrepreneurs to pay
more attention on business so that they can effectively maintain their business through
their creative mind. In United Kingdom, Various companies are effectively operating
their business with a specific purpose and all companies are containing different aim,
goal, purpose and scale (Jardón, Molodchik and Paklina, 2018). This assessment is
mainly discussing about the involvement of different types of companies with its
different characteristics so that they can effectively maintain their business operations.
This assessment will also explain various legal structure which are considering by the
entrepreneurs in order to maintain their companies. Furthermore, various kind of
organisational structure will also discuss which demonstrate the working structure and
helpful to improve the effectiveness of the business. Lastly, the impact of external
environment so that company can effectively gain high level of productivity.
MAIN BODY
SECTION: 1 Different types of companies and how they are working.
Micro business
Micro companies are need low level of resources & target limited location as per
to maintain their business activities. In context of micro businesses, entrepreneurs are
required less resources and they are providing their goods & services to the less
people. The purpose and size of these companies are different and perform their
operations in specific manner because these companies are constantly trying to
improve their brands image (Lee and Huh, 2017). The size of the micro-organisation is
less, only 0 -9 people can perform their task everyday & the annual turnover rate under
less than £ 2 Million. Some specific examples of the micro-organisations such as Boss
Brewing venture are containing as the best examples of the micro businesses.
Characteristics - Some specific characteristics of micro organisations like small team
of employees, limited market size, sole or partnership business structure, involvement
of less people, small capital and resources. All these characteristics are demonstrating
the working conditions of the organisation & differentiate from the others.

Small business
Basically, small businesses are required more financial resources & target more
population as compared to the others businesses. Those entrepreneurs who have
different ideas to start their business than they can appropriately formulate their
business operations. Small businesses are need a specific ownership structure so that
they can work collectively and manage their business activities with full legal
consideration (Leontieva, 2018).The size & turnover of these businesses are different.
Small companies are providing employment chances to 0 – 49 people and the annual
turnover rate is considered under £ 10 Million. Small businesses are giving positive
impact in the development of the country economy. Cage Pod coffee, Margot Bakery is
containing as the best example of the small businesses in UK.
Characteristics - Small businesses are containing appropriate characteristics such
as lower level of profitability& revenue, small market areas, optimal utilisation of
resources, less business activities, target local communities. All these strategies are
helpful to manage the working situation of the small businesses. These businesses are
not paying tax because of low revenue. Davison Canners, Imaginera are small scale
companies in UK.
Medium size business
Medium size businesses are cover more area as compared to other business like
micro and small. The size and scale of these businesses are more and providing work
opportunities 50 – 250 people so that they can work collectively and show their active
participation in the day-to-day task of the company. Medium size businesses are
generating annual turnover under £ 250 Million. These organisations are targeting more
people so that they can earn more profitability. The best example of medium size
business is Captify and this company is managing their operational activities effectively
& also ensure that company can improve their brand value appropriately (Mohammadi
Shahahroodi and et. al., 2020).
Characteristic - The main concern of medium organisation is that they are usually
performing their operations in the competitive market situation. Few characteristics
which are maintaining by these organisations such as Evaluation of customers,