Different Types of Companies and Their Operations

This report covers different types of businesses and their operations, including sole traders, partnerships, public limited companies, and cooperatives. It also discusses micro, small, medium, and large businesses and their characteristics. Examples of each type of business are provided, along with definitions and key features. The report concludes with a reference list of relevant sources.

Business in Practice
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Contents
Introduction 3
Section 1: Different types of companies and how they work 3
Section 2: Different companies from sole traders to cooperatives and
Limited Liability Partnerships 4
Conclusion 8
Reference List 9
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Introduction
Business refers to the separate legal entity which in involving manufacturing product
and services with the consideration of earning higher profits for the company by which they
can more towards success and growth. When an individual or the group of people are engage
in conducting some sort of business with the sole aim of generating higher profits so that they
can expand their market to the new locations (Bosbach, Brillinger and Schäfer, 2020.) this
report will cover the different type of business which are being operated in the business
environment and also cover the business on the basis of their operations such as sole trader,
partnership and public limited company.
Section 1: Different types of companies and how they work
Micro business:
Definition- These are the venture which s being formed for the survival of the
individual as they are having limited resources and funds which usually cover the local
marketplace.
Characteristics- The main attribute of the firm is that they are operating their
business with 0-9 employees and generate the average revenue of 632000 euros.
Example- Boss Brewing venture is the suitable example for small size business as
they are giving nominal wages to their employees.
Small business:
Definition- It is the business which is having certain employment opportunities and
they are giving employment up to 49 employees and also ensure higher profits.
Characteristics- The key attribute of the small business is that they usually work up
to 49 employees and they usually do not pay the tax due to low profit margin.
Example- the best example for small venture is Cafe pod coffee co. It is the leading
manufacturer of coffee and providing best services with innovative flavour.
Medium size business:
Definition- It is the type of business which is operating their business with 50-250 -
employees and working on their set plans and policies. They also having sufficient funds and
capital by which they can get effective results in profits and growth.
Characteristics-they basically work in the competitive environment and having more
than 50 employees for their higher profits and growth.
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Example- Captify is the suitable for small business, they are offering intelligence
research for taking effective decisions in the market.
Large size business:
Definition- It is the type of business which are operating their business on large
segment as they are having unlimited resources so they emphasising on meeting the needs
and wants of the potential customers to be the market leader. They usually work with the
main motive of taking competitive advantage in the market(Correa-Garcia, Garcia-Benau and
Garcia-Meca, 2020).
Characteristics- The main feature of large organisation which usually work with the
main motive of generating higher profits so that they can sustain in the market. They are
giving employment to more than 250 employees and also offering various job opportunities.
Example- Tesco is the leading company which is operating their business in general
merchandise and groceries and It is founded in 1919 by Jack Cohen.
Section 2: Different companies from sole traders to cooperatives and
Limited Liability Partnerships
Sole trader business:
Definition- It refers to the type of business which is being owned and operated by the
single individual and only responsible for their profits and looses. All the tax which is being
imposed by the government is paid by the individual only. High risk is being associated with
the business as they are having limited capital ans funding.
Characteristics- They are the one who is having separate legal entity which solely
operated by the single individual. All the risk and the profits is being incurred by the person
only by which they may have the direct impact on their business. These ventures focuses on
having meeting the needs and wants of the customer in order to sustain in the market for long
period of time.
Example- Carpenters, plumbers and hairdressers.
Partnership:
Definition- It is the legal agreement between the toe or more parties who agreed to
share their profits and looses on the agreed basis and also responsible for the debts and
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liabilities of the business. They also show their resources and funds in order to have the
effectiveness in the partnership act(Kurtz, Hanelt and Kolbe, 2021).
Characteristics- The main attribute of this type of business is that partners are liable
to share their profits and looses. Additional y, Concern for the tax to be paid to the
government by which they run their business effectively.
Example- Deciduous partner Ltd is the best example for partnership firm. It is the UK
based company which is accessing the knowledge to the individual related to the
management services practices.
Public limited liability business:
Definition- It is the type of company which is having main significance of the market
and these are regulated by the government only. All the decisions are being take by the strict
interventions of government bodies.
Characteristics- It is the legal entity in which all the decisions related to the business
is being taken by the government only. An individual can be decide the strategies or the
functioning of the venture.
Example- Tesco is the best example for the public limited company as they are
focusing on offering and meeting the needs and wants of their potential customers.
Cooperative:
Definition- It is the type of business which is being owned ans controlled by the
individual or the group of people who are not having any legal implication within the
organisation as they can manufacture the products and services with the right approach(Saide
and Sheng, 2020).
Characteristics- The main feature of this business is that there is no tie up with the
government and they performed their functions without inferences of the government and
generates higher profitability.
Example- The best example for such business is Dyson, It is the multinational
company which is dealing in hair dryers, blade less fans and electronic appliances.
Conclusion
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It is concluded from the above report that when the person or the group of individual
come together in order to conduct the commercial activity with the consideration of
generating higher profits. They usually concern with the manufacturing of products and
services so that they can ensure higher profits. There are different type of business such as
micro, small, medium and large which is using different organisational structure on the basis
of operations, size and the type of business. It also inculcated various legal structure such as
sole trader, partnership.
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Reference List
Bosbach, K.E., Brillinger, A.S. and Schäfer, B., 2020. More can be better: Operating multiple
business models in a corporate portfolio. Journal of Business Strategy.
Correa-Garcia, J.A., Garcia-Benau, M.A. and Garcia-Meca, E., 2020. Corporate governance
and its implications for sustainability reporting quality in Latin American business
groups. Journal of Cleaner Production, 260, p.121142.
Kurtz, H., Hanelt, A. and Kolbe, L.M., 2021. Exploring Strategic Orientations in the Age of
Digital Transformation: A Longitudinal Analysis of Digital Business Model
Patterns.
Saide, S. and Sheng, M.L., 2020. Toward Business Process Innovation in the Big Data Era: A
Mediating Role of Big Data Knowledge Management. Big Data, 8(6), pp.464-477.
Sun, M., 2021, April. Application of Computer-Aided Translation Software in Business
English Translation. In International Conference on Application of Intelligent
Systems in Multi-modal Information Analytics (pp. 140-147). Springer, Cham.
Sund, K.J., Galavan, R.J. and Bogers, M. eds., 2020. Business Models and Cognition.
Emerald Publishing Limited.
Suresh, N.C., Sanders, G.L. and Braunscheidel, M.J., 2020. Business continuity management
for supply chains facing catastrophic events. IEEE Engineering Management
Review, 48(3), pp.129-138.
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