Types of Companies and Their Characteristics

TYPES OF COMPANIES
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Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
SECTION 1....................................................................................................................................2
Section 1: Different types of companies and how they work........................................2
SECTION 2....................................................................................................................................4
Characteristics and examples of different legal structure of companies....................4
SECTION 3....................................................................................................................................5
Different structure of organizations and its affects venture productivity.....................5
PESTEL analysis to determine external factors in regard to ASDA............................5
CONCLUSION...............................................................................................................................5
REFERENCES..............................................................................................................................6
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INTRODUCTION
The business world comprise of different companies, which have operated its
ventures in varied forms according to structure and sizes. Each organization has
achieved its set objectives and goals by working with specific legal structure which is
quite beneficial. The current assignment will define characteristics and examples of
different forms of organizations. It will explain several companies from sole traders to
limited liability partnerships and cooperatives. Furthermore, this study will describe
different organizational structures and its impact on productivity of a company. It will
justify use of PESTLE analysis to identify impact of external factors upon a venture
performance.
MAIN BODY
SECTION 1
Section 1: Different types of companies and how they work
Micro business
Micro businesses are those organisations that are smallest in terms of size and
scope compared to all other types of organisation. Micro businesses are those that
employ less than 10 employees and are very important part of an economy. Often such
organisations are managed by their owners and these are businesses that form highest
part of business population in an economy. These are businesses that employ low
capital and investment and objectives of these businesses is to earn maximum benefit
on their limited and low investment and assets (Houston and Reuschke, 2017). In order
to be counted in micro businesses a business must not have turnover of more than
£632,000 and balance sheet total must not be more than £316,000 and another criteria
is that average number of employees must not be more than 10. When a business or
company fulfils these criteria it will be considered as micro business or company. Scope
is these business is limited, this means that customers of these are from local area
where businesses are operating. Examples of this involves- small grocery stores, cafe
and similar businesses.
Small business
Small businesses are those organisations and businesses that are privately
owned, partnerships and sole proprietorships that employs less than 50 employees.
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